Japan Postal Savings

About Japan Postal Savings

Japans postal savings system, established in 1875, became the largest pool of savings in the world. At its peak, it held over 2 trillion. The system channeled savings into government bonds, funding Japanese industrialization and militarization. Postal savings were used to buy American Treasury bonds, making Japan a major creditor nation. The system was privatized in 2007 after years of political struggle, then partially renationalized. Japan Post Bank remains one of the largest banks in the world by deposits. The postal savings system reflects the close relationship between Japanese government finance and household savings that defines the Japanese economic model.