TITLE

Who declares the demise of the Japanese main banking system?

AUTHOR(S)
Takahashi, Takuma
PUB. DATE
December 2002
SOURCE
Journal of International Banking Regulation;Dec2002, Vol. 4 Issue 2, p123
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In order to send a stronger signal on banking reform, Japan's Prime Minister Junichiro Koizumi replaced the Minister for the Financial Services Agency (FSA) in September, 2002. The FSA in turn postponed the introduction of the pay-off system for another two years. The solution for troubled financial markets in Japan is not simply the 'clean-up' of a few banks, but a fundamental change in the core philosophy that is used to allocate money across the economy. In other words, the Japanese main banking system is the pillar of the 'year 1955 financial system' that formed around 1955 as a mixture of the wartime economic system and the market economy system. As it became taken for granted by all parties involved, it has survived any crisis easily.However,the new Minister for the FSA has been blamed for not showing a design after his destruction process. The author argues that the Mycal incident in 2001 rather than the new cabinet member seems to have finally triggered a fundamental change in the main banking system, as its inability to revitalise the ailing business corporation was revealed. A bold challenge (though only for Japanese banks) was the announcement by Sumitomo- Mitsui Bank in April 2002 that it would charge a maximum 400 basis points spread on its loans,according to the credit rating. As a result,corporations have had to accept a rise in borrowing rates of as much as 3--4 percent. The bank stipulated that it will not extend loans to companies in danger. Other major banks have followed suit. The author speculates that despite the enfeebled Koizumi cabinet these measures should shrink the bank loans, which have over-extended, and normalise the capital markets in Japan to an extent that will change the year 1955 financial system.
ACCESSION #
8509179

 

Related Articles

  • Cooking Books In India.  // Siliconindia;Oct2002, Vol. 6 Issue 10, p16 

    Reports on the prevalence of anomalies in corporate governance procedures in India according to survey findings from the Credit Rating Information Services of India. Instances of questionable accounting techniques by Indian companies; Measurement of investor confidence.

  • Only modest FDI inflows: CRISIL.  // Textile Magazine;Dec2011, Vol. 53 Issue 2, p80 

    The article discusses the impact of foreign direct investment (FDI) inflows into India's retail market according to Credit Rating and Information Services of India Ltd. (CRISIL) in December 2011. CRISIL believes that the food and grocery (F&G) segment would attract a larger share of the FDI...

  • Prudent funding of capex critical for spinners' credit quality.  // Textile Magazine;Jan2011, Vol. 52 Issue 3, p44 

    The article reports on the ratings and analysis of India's textile industry by Credit Rating and Information Services of India Ltd. (CRISIL). It expects the business risk profiles of cotton yarn spinners to improve over the medium term, supported by robust cash flow caused by healthy demand and...

  • CRISIL rating of Sudar Garments IPO. Thevar, Murugan // Textile Magazine;Feb2011, Vol. 52 Issue 4, p56 

    The article reports that Credit Rating and Information Services of India Ltd. (CRISIL) Equities assigned a 1/5 initial public offering (IPO) grade for the IPO of Sudar Garments Ltd. in India in February 2011. The company manufacturers shirts and trousers, catering to both domestic and export...

  • Crisil assigns highest rating to PFS.  // Power Watch India;Apr2014, Vol. 5 Issue 2, p24 

    The article reports that Credit Rating Information Services of India Ltd. (CRISIL) assigned its highest rating to the proposed short-term debt program of infrastructure finance company PTC India Financial Services Ltd. (PFS).

  • Crisil vision paper for textile industry soon.  // Colourage;Mar2004, Vol. 51 Issue 3, p85 

    Credit Rating Information Services of India Ltd. (CRISIL) is preparing a vision paper for the textile industry to take stock of its current position and to draw a road map for the future. The paper, being prepared on behalf of the Indian Cotton Mills' Federation (ICMF), will be finalized at its...

  • Role & Potential of Ratings/Grading in Healthcare Industry. Shah, Janhavi // Aweshkar Research Journal;Sep2011, Vol. 12 Issue 2, p103 

    The article explores the significance of ratings in the healthcare industry in India. Forecasts on the growth of the healthcare sector are highlighted which is projected to increase by 23 percent year-on-year from 2007 to 2022. The role of Credit Rating and Information Services of India Ltd....

  • Lights Out!  // Business World;8/14/2015, p1 

    The article relates a report by rating agency Credit Rating Information Services of India Ltd. (Crisil) that power distribution companies are at risk of turning delinquent for their loans in the medium term.

  • Crisis Looming Over Power Sector In India.  // Business World;8/14/2015, p1 

    The article discusses the author's view on a report by rating agency Credit Rating Information Services of India Ltd. (Crisil) that power distribution companies in India are facing a crisis of tariff.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics