Bank-based versus securities-based financial system: lessons from the war-stricken Japan for the post-war Islamic Republic of Iran

Iran can learn from Japan's astounding transformation to a capital-exporting nation. Japan's success can be explained by certain factors including, among other things, corporate 'financial dualism', the household savings rate, legal advantages such as assistance from the Bank of Japan, and a transformation from a 'securities-based' to a 'bank-based' financial system. Iran should follow the Japanese example and develop a 'bank-based' financial system.