Japan to Abolish Commercial Bill Clearing Houses in Nov.
Tokyo, Sept. 5 (Jiji Press)--Japan will abolish its clearing houses for commercial bills for financial transactions between businesses in November, marking an end to their history that spanned more than 140 years.
Usage of clearing houses has declined due to the spread of electronically recorded monetary claims. In addition, the government plans to abolish paper commercial bills altogether by fiscal 2026.
Commercial bills are documents in which the drawer promises to pay a stated amount of money by a particular date. They were widely used as an alternative to cash.
Japan's first commercial bill clearing house was established in the western city of Osaka in 1879. There are 179 clearing houses across the country, handling commercial bills and checks brought by local financial institutions.
The amount of commercial bills handled by clearing houses is on the decline after peaking at 4,797 trillion yen in 1990. In 2021, the annual amount was only 123 trillion yen.
[Copyright The Jiji Press, Ltd.]