The primary purpose of this thesis is to identify the nature of egulatory problems in the Japanese banking system by a comparative analysis of banking regulations between Canada and Japan. Examining preventive measures in the legal frameworks of both countries has resulted in implied solutions for reforming the bank regulatory regime in Japan. This thesis is based on primary legal evidence, specifically statutes and regulations, as well as on the most recent secondary, scholarly studies. The particular problems that are addressed are: capital adequacy, current business activities, and legal frameworks for bank insolvency.