scheme should be established whereby injections of public funds are available to banks in difficulties, even in cases where the materialization of systemic risk is not imminent. what, then, should the bank supervisory authorities, including the bank, do to prepare for the removal of blanket deposit insurance? they need to prove that they have developed a sufficient crisis management system to prevent the materialization of systemic risk and ensure financial system stability. to prepare for cases where banks ’ financial conditions deteriorate significantly, the safety net comprises several measures for maintaining financial system stability. two primary examples are the deposit insurance system and the bank ’ s function as the lender of last resort, including its readiness to extend emergency loans when necessary. the crucial issue from now on is to further devise ways to apply these safety - net measures in practice. the government and the bank have accumulated a great deal of knowledge and experience by working together closely in the resolution of failed banks, both large and small. as i mentioned earlier, we cannot rule out the possibility of bank failures after the removal of blanket deposit insurance. it has become all the more important that the bank supervisory authorities obtain from the market and the public the strong trust in their ability to ensure financial system stability, while further improving the environment for free and open competition. this can be achieved if they avoid any large, negative impact on the economy, without causing significant moral - hazard effect, by taking appropriate and swift action whenever the resolution of troubled banks becomes necessary. the injection of public funds into resona bank was the first case pursuant to article 102 of the deposit insurance law, and it confirmed the effective functioning of the system. the bank supervisory authorities need to further enhance their practical skills for dealing appropriately with other potential cases. ii. future agenda for japan ’ s financial system next, i would like to share with you my thoughts on several issues that are significant for the future enhancement of japan ’ s financial services. what are the key issues ahead? answers may vary depending on whether one is a depositor, an investor, a firm, or the manager of an entity that provides financial services. many of the questions that come up in such a discussion should be left to the ingenuity of the private sector to solve. therefore, today i would like to focus on one issue. even if we assume that the npl problem is successfully overcome, will japan ’ s system for credit intermediation prove adequate to the task of offering firm and effective support to the economy? a.

household income structures subsequently, bold monetary easing policy and flexible fiscal policy - - part of a strategy that the bank started implementing in 2013 - - served to arrest the deflationary trend. various other measures were also put in place to tap into growth in overseas economies, including ones to stimulate demand from inbound tourism, which is classified as service exports, and this caused such exports to assume a larger role in driving growth ( chart 12 ). likewise in the private sector, following the global financial crisis, major manufacturers seeking to capture foreign demand made further inroads into overseas markets4 while firms, including leading nonmanufacturing firms, turned increasingly to acquisitions from around 2013, leading to further growth in outward direct investment ( chart 13 ). reflecting these developments, the surplus in primary income - - or the positive balance associated with foreign investment - - has expanded, serving as the main factor in the current account surplus ( chart 14 ). the achievement of globalization has not been without its share of pain brought about by needed structural reforms, but it has enabled leading firms to tap into growth in overseas economies in their improved consolidated performance and in the form of higher dividends and royalties from overseas subsidiaries. growth in consolidated performance is reflected in stock prices and feeds into higher dividends paid out to shareholders. these efforts to reform corporate structure have borne fruit : developments in the tokyo stock price index ( topix ), which represents the corporate value of listed japanese firms, have been increasingly inclined to follow the world's trend of nominal gdp ( chart 15 ). cabinet office, annual report on the japanese economy and public finance 2013, july 2013. let me turn to the income structure of japanese households over this period. employee compensation has risen moderately since around 2013, but only to the extent of making up for former decreases ( chart 10 ). after peaking in 1991, interest income continued to slide until 2005, after which it has languished. dividend income has increased modestly but not enough to offset the fall in interest income. reflecting these developments in income and changes in the social structure, household disposable income had been sluggish after reaching its peak in 1998, but finally started to improve from the first half of the 2010s. by contrast, in the united states, employee compensation, interest income, and dividend income have all risen, with disposable income for 2020 more than triple that of the first half of the 1990s. in germany, while interest income is on a slight