During the 1980s, the Japanese main bank system was viewed as an ideal corporate governance model. Such bank-reliant firms had few conflicts among creditors, large stockholders, and management, as they were all linked by a single entity, the main bank. Because the bank had dual stakes as both a creditor and equity holder, they were well know as active monitors of the Japanese firm. As a result, these firms were able to maintain high debt levels and had little need to maintain liquid financial slack.