... branch of a major 32 The Rise and Fall of Abacus Banking in Japan and China tually eliminated liquidity risk, a traditional banking risk. Adams and Hoshii note:Due to the readiness of the Bank of ... turns the MOF into the de facto guar-antor of the soundness of the banking industry. The Rise of Abacus Banking in Japan 39 Besides, as was discussed earlier, in a fast-growing economy, concealingshort-term ... 1979–1995, Japan s totalfactor productivity increased by 1.2 percent annually, compared to 0.5 40 The Rise and Fall of Abacus Banking in Japan and China banking risks and controls the behavior of bank...