Thursday May 24, 2012

JAPAN NEWS AND DISCUSSION

IMF stress-tests Japanese banks

Business Jan. 09, 2012 - 05:45AM JST ( 10 )

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10 Comments

-1

some14someJan. 09, 2012 - 07:46AM JST

Good luck to IMF and hope they will give top grade to Japanese Banks.
0

BernieKJan. 09, 2012 - 09:46AM JST

systemic shocks

That means chain reaction. You can't stop a chain reaction and this chain reaction is often a small event. This small event could be a further decline in stock markets, or Japan's inability to pay off some of its debt, which there is definitely a possibility.
0

globalwatcherJan. 09, 2012 - 01:49PM JST

IMF stress-tests Japanese banks

The worries focus on the risk of large losses for the banks if markets lose their appetite for JGBs, given the government’s already massive debt burden.

A bad topic, here we go. This is exactly what I was afraid of.

Reduce debt, raise tax and work on GDP growth above 3 to 3.2%. You can do it.
0

nigelboyJan. 10, 2012 - 02:08AM JST

The worries focus on the risk of large losses for the banks if markets lose their appetite for JGBs, given the government’s already massive debt burden

????

If the banks lost their appetite for JGB, it simply means that banks are now lending more.
0

globalwatcherJan. 10, 2012 - 02:26AM JST

some14someJan. 09, 2012 - 07:46AM JST

Good luck to IMF and hope they will give top grade to Japanese Banks.

We (global investors) have been aware many J. banks will be down graded in spring. Well, here IMF is talking about a real "stress test" -SURVIVAL.

nigelboyJan. 10, 2012 - 02:08AM JST ????

If the banks lost their appetite for JGB, it simply means that banks are now lending more.

What are you talking about, nigelboy? You have lost me here. Please elaborate further, so I can understand what you are saying.
-1

nigelboyJan. 10, 2012 - 02:39AM JST

What are you talking about, nigelboy? You have lost me here. Please elaborate further, so I can understand what you are saying.

JGB has the lowest long term yield in the world and yet banks are buying. This is because the banks have excess cash which instead of "lending", they are buying JGB.

In other words, if the banks are losing their "appetite" for JGB, it means that there are alternatives (like lending) the banks can use for their excess cash.
0

globalwatcherJan. 10, 2012 - 08:41AM JST

@niegelboy, where are these cash parked? In the safety box with the banks? I am not kidding here. Where are they?
-1

nigelboyJan. 10, 2012 - 11:36PM JST

niegelboy, where are these cash parked? In the safety box with the banks? I am not kidding here. Where are they?

http://members3.jcom.home.ne.jp/takaaki.mitsuhashi/Kajochochiku101012.JPG

In the bank.
0

globalwatcherJan. 11, 2012 - 01:01AM JST

@nigelboy, what is the link you have provided? I am clueless how to interepret this data.
-1

nigelboyJan. 11, 2012 - 11:54PM JST

@nigelboy, what is the link you have provided? I am clueless how to interepret this data.

The read area represents the deposits held by financial institutions in Japan. The blue area represents the outstanding loan amounts and the light blue represents what is defined as excess deposits over the required capital requirements for a financial institutions.