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Japan's problem is Keynes "optical illusion" problem.  Banks don't lend deposits.  Deposits are the result of lending/investing.   It is an extraordinary delusion.  Ergo, all bank-held savings are frozen.  That destroys the velocity of circulation.  

Japan’s “lost decade” is due to the impoundment and ensconcing of monetary savings in their banks. The BOJ has unlimited transaction deposit insurance, the Japanese save more, and keep more of their savings in their banks.

“Japanese households have 52% of their money in currency & deposits, vs 35% for people in the Eurozone and 14% for the US.”

Economists simply can’t differentiate between an individual bank and the system. The equation, the capacity of a single bank to create credit as a consequence of a given primary deposit (and newly created deposits flow to other banks), is also applicable to a nonbank, financial intermediaries.  A bank: L = P (1-d) & A nonbank: L = S (1-s)

But this comparison is superficial since any expansion of credit by a commercial bank enlarges the money supply, enlarging the system, whereas any extension of credit by an intermediary simply transfers ownership of existing money within the system (a velocity relationship).