GB30403 CURRENT ISSUE ON INTERNATIONAL & OFFSHORE BANKING

“CURRENT GLOBAL FINANCIAL CRISIS AND ITS IMPLICATIONS ON

INTERNATIONAL FINANCIAL INSTITUTION:

THE CASE IN JAPAN”

GROUP: MARIA SHARAPOVA

INTRODUCTION

1. Objectives2. Discussions & Findings3. Suggestions For Future

Research4. Conclusion

OBJECTIVES

(I). To acknowledge on the current Global Financial Crisis that have occurred

(ii). To identify the implications of current global financial crisis upon Japan

(iii). To highlight the impact of current Global Financial Crisis towards Japan’s International Financial Institutions (IFI)

DISCUSSIONS & FINDINGS

(I). Japan’s Background(ii). Global Financial Crisis History(iii). Impact of Crisis on Japan:

a. International Financial Institutions (IFI)b. Financial System & Financial Banking

(iv). Reasons Why Japan Could Be Affected(v). Reasons for Japan Less Exposed to the

Market Turmoil(vi). How Japan Has Recovered

(i). Japan’s Background Current population is fewer than 127 million Is known with its highly efficient & competitive

economy Japan has turn into a mature industrial economy Do owned the natural resources

(U.S Department of State, 2012) Has shifted its economy oriented to East Asia Still, is the most productive & advanced

economy in Asia Manufacturing share remains competitive

among the developed economies(Grimes, 2009)

(ii). Global Financial Crisis History

Ito (2009): 3 Stages - The Beginning (Feb 8, 2007), 2nd Stage (Aug 9, 2007) & Final Stage (Sept 15, 2008)

Malik, et. al. (2009) & Kawai (2009): Another reason is the downfall of U.S Subprime mortgage industry

Ngowi (2009): Officially start in U.S (Sept 2008) when inadequate liquidity from financial markets credit crunch

Mckibbin & Stoeckel (2009): bursting of housing bubble, sharp rise in equity’s risk premium & household risk due to reappraisal of firms risk

(iii). Impact of the Crisis on Japana. International Financial Institutions

Kono (2009): Japan’s IFI have lost around 3.2 trillion yen ---- Losses stem from U.S investment, economic downturn & fall of stock prices

Yamaguchi (2009): Japan’s retail banking performance has deteriorate & sluggish sales of the mutual funds --- Low profitability

Malik, et. al. (2009): Japan’s IFI reluctant to lend money due to the subprime mortgage crisis

Grimes (2009): The IFI have to unfreeze & resumed their basic function of allocating capital in the private sector

b. Japan’s Financial System (FS) & Financial Banking (FB)

Have been affected due to the financial markets volatility

FS was badly affected caused by share prices sharply decline

FB profitability (increase the credit cost) was impacted by real economy deterioration

FS was remained sound as FB losses were limited

Sato (2009)

(iv). Reasons on why Japan could be Affected

Japan was delaying on recognizing the nonperforming assets severity

Japan’s accounting & disclosure standards were imperfect

5 areas of major structural problems & policy weaknesses(i). Japan’s banks weak & unclear disclosure rules(ii). The regulators attitude on “wait & see”(iii). Synch deregulation(iv). Heavy reliance on administrative guidance(v). Japan’s little policy transparency

Ulrike (1996)

(vi). How Japan Has Recovers Japan has recovered on the its strategy cost During the recovery, there are 3

consequences: (i). Mistaken belief on the economy will rebound quickly(ii). Japan’s MOF rather wait until economic growth was restored (iii). Japan's economy grow very slow

Patric (1998)

(i). Get to know the basic about the particular countries & the crisis

(ii). Understand of whatever information that have been gathered

(iii). Make sure the journals or any articles are related with the project topic

SUGGESTIONS FOR FUTURE RESEACH

CONCLUSION Not only Japan has been affected by the

Global Financial Crisis The crisis occur lead by numbers of causes Japan’s has been affected in several aspects Nonetheless, Japan was not severely

affected & managed to recover Limitation in preparing this assignment:

(i). In finding the journal that really suits with our project title(ii). Timing (iii). In understanding the journals