This paper describes the development of Trust Companies in Japan, focusing on the characteristics of their capital, executive staffs and management philosophy.
Trust companies were incorporated under the Trust Business Act of 1923. Most of those trust companies were established and capitalized by a Zaibatsu, a large bank or major provincial banks, and were managed by the executives sent from the mother bank, following the example of their mother. The fact that the trust companies had the function of taking charge of trusters' property, however, gave characteristic feature to their management philosophy.
The trust companies grew up as one of the long term financial institutions, comparable to banks and life insurance companies.
