On April 14 of 2002, Mitsuho Bank, the biggest bank in Japan, experienced a large-scale transfer account delay. That same year, according to the evaluation of the World Bank, the 4 biggest Japanese banks were ranked as level 6 or level 7 on an 11-level scale. This data shows that the Japanese system is on the verge of financial crisis. This article explores why the Japanese government has undertaken financial reform policies from 1998-2002, including Ryutaro Hashimoto's Big Bang and Junichiro Koizumi's structure reform. The argument of this article is that the Japanese government is only focused on bank mergers and is not reforming the banking structure. Therefore, Japanese banks and businesses still maintain cross share-holdings. This is the main reason why many banks have experienced many cases of corruption lately.