The regulations for consumer finance companies are more and more strengthen because of the amended law on money lending business. It focuses on the lowering of interest rates. As a result, a double standard for cap interest rates will be abolished; the Interest Limitation Law and the Deposit Interest Rate Law. However, the lowering of the ceiling rates is not always special regulations. That is because, the same restrictions are enforced until now. Some theoretical or empirical studies describe the effect of such regulations. Through the institution and the existing state, this paper focuses on not only the interest rate limitation but also the reorganization on the structure of the consumer finance market. In addition, this paper makes clear the implications through the existing theoretical analysis on the Japanese consumer finance market.
