In response to the suggestion – put forward by bankers and central bankers in the UK – that a temporary cut in capital adequacy requirements would stimulate new lending and economic growth, The Banker has simulated how a 1% lower Basel requirement might affect various major world economies.
Morgan Stanley's joint venture in Japan with Mitsubishi UFJ Group has been criticised by competitors as a concession to MUFG for its huge investment in the US bank at the height of the financial crisis. However, Jonathan Kindred, CEO of MSMS, one of the companies formed by the joint venture, is adamant that the long-term benefits of the move will prove the critics wrong.
Japan's banks recorded unremarkable increases in profitability and returns over the past year, yet the country's big players have maintained their prominence within the global rankings, suggesting that their disappointing performance is part of a wider global trend. But with the data from the months following the disasters of March 2011 yet to be revealed, the performance of Japan's banks could yet take a further hit.
With its acquisition of Lehman Brothers' non-US operations, Nomura made an audacious bid to join the global investment banking elite. Little did it know that its bold move would coincide with the worst economic and financial environment for the best part of a century. However, its senior management believe that if they hold their nerve, the gamble can still reap the rewards they originally expected.
Japanese development bank, the Japan Bank for International Co-operation, is tasked with integrating broader Asian demands into its operations. Environmental finance and capital markets support are two areas of increasing prominence for the bank.
For the first time in its modern economic history, Japan is being hotly pursued by China, which recently became the world's second-largest economy. Nomura Research Institute's chief economist reveals what Japan needs to learn if it is to maintain its lofty position in the new global economic order.
After five years plagued by setbacks, the Tokyo Stock Exchange has raised its game with the launch of its Arrowhead trading system in January. The exchange's next goal is to successfully accommodate the increased flow of alternative trading in order to cement its position as a rival to the more established centres in the US and Europe. Writer Charles Smith