Japan's financial crisis in the 1990s led to a prolonged period of sluggish post-crisis economic growth – the so-called 'lost decade' – and balance sheet adjustment pressures for banks, something global rulemakers should be mindful of when regulating banks today, says Hiromi Yamaoka, associate director-general of the financial system and bank examination department at the Bank of Japan in Tokyo.

"There is some similarity with Europe and the US where the tempo of growth is now slower – we