In this study, it has been analyzed how competitive structure between major commercial banks and regional financial institutions is changing, alongside the changes in policy idea of Japanese Financial Administration after collapse of Convoy-fleet system from the perspective of Neo-institutionalism, and thus provide implications for the outlook of ‘New Capitalism’ by Kishida. ‘New Capitalism’ proposed by Kishida cabinet seems a rather prompt change of policy, but from the perspective of Neo-institutionalism, it is necessary that change in ‘Japanese capitalism’ is understood in context of institutional change. Features of ‘Japanese capitalism’ includes market intervention by government based on the policy idea of prevention of excess competition, and it can be identified principle of cooperation is crucial, as much as the principle of competition. Koizumi cabinet promoted structural reform based on Neoliberalism, but henceafter, going through global economic crisis, the Great East Japan Earthquake, and COVID-19, policy idea of ‘prevention of kato kyoso (excessive competition)’ is once again being held high. Since the collapse of Convoy-fleet system (especially from 2010), Japanese Financial Administration (bureaucrats in Financial Service Agency) still holds policy idea of prevention of kato kyoso. This is because inhibition of excess competition satisfies the motive of major Commercial Banks and Regional financial institutions to promote private benefit. As Kishida cabinet is emphasizing implementation of ‘New Capitalism’, there is possibility of expanded intervention by the Financial Administration with the goal of restraining kato kyoso in the financial business. Financial administration, especially, can promote reinforcement of financial reform among Regional financial institutions to overcome overbanking in Regional financial institutions.

policy idea , competition between major commercial banks and regional banks , kato kyoso (excessive competition) , institutionalism , ‘New Capitalism’