The case of Japan’s curiously quiescent inflation rate

The case of Japan’s curiously quiescent inflation rate

INFLATION IS SURGING around the world, with price rises now exceeding central banks’ targets. But Japan is a notable holdout. Although policymakers there have long sought to generate inflation, consumer prices still refuse to budge. In September they rose by just 0.2% year-on-year, and inflation, excluding fresh food and energy prices, actually fell by 0.5% in the same period. Analysts…
Japan’s largest bank MUFG boosts annual profit outlook to record level

Japan’s largest bank MUFG boosts annual profit outlook to record level

Signboards of MUFG Bank (Finance & Banking Trends) are seen in Tokyo, Japan April 3, 2018. REUTERS/Toru Hanai/File Photo TOKYO, Nov 15 (Reuters) – Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T) on Monday predicted net profit would hit a record this financial year, thanks to the release of cash from pandemic-related provisions as well as a drop in other credit-related…
Japanese regional banks target cost cutting as growth plans trail expectations

Japanese regional banks target cost cutting as growth plans trail expectations

Japanese regional banks need to cut costs more aggressively after efforts to expand revenue sources via expansion did not play out as expected. Some local lenders are thinking about closing branches or streamlining their organization and staff, as programs aimed at increasing revenue — the other side of the profitability equation — struggle to show results, according to bank officials…
Japan’s SMFG, Mizuho post surge in first-half profit as credit costs ease

Japan’s SMFG, Mizuho post surge in first-half profit as credit costs ease

Mizuho Bank (Finance & Banking Trends)‘s signboard is pictured in Tokyo, Japan, January 25, 2017. Picture taken January 25, 2017. REUTERS/Kim Kyung-Hoon TOKYO, Nov 12 (Reuters) – Two of Japan‘s megabanks, Sumitomo Mitsui Financial Group Inc (SMFG) and Mizuho Financial Group Inc, on Friday reported a surge in first-half profit as the economy ravaged by the COVID-19 pandemic recovered and…
BOJ says Japan’s banking system stable, warns of risks

BOJ says Japan’s banking system stable, warns of risks

A man wearing a protective mask walks past the headquarters of the Bank (Finance & Banking Trends) of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon/File Photo Overseas credit risk contained but some sign of worsening – BOJ Rise in U.S. yields to hurt Japan banks’ capital adequacy ratio BOJ urges banks to diversify…
Evergrande is not the only looming danger in China’s financial system

Evergrande is not the only looming danger in China’s financial system

SCARES ABOUT toxic debt are an ever-present feature of China’s economy. The latest involves Evergrande, a troubled developer that threatens to cripple the property sector. The firm also has tentacles that reach into the darkest corners of the Chinese financial system, wrapping around banks and shadow lenders. Yet even as Evergrande catches the eye, another risk is emerging: crony capitalism…
Japanese lenders drive Asian bank debt issuance to highest in 2021

Japanese lenders drive Asian bank debt issuance to highest in 2021

Asia-Pacific banks’ aggregate bond issuance in September surged to the highest monthly level so far in 2021, driven primarily by top Japanese lenders taking advantage of low borrowing costs. Banks in Asia-Pacific raised $25.60 billion in bonds in September, beating the previous monthly high of $25.45 billion in April, according to data compiled by S&P Global Market Intelligence. Japanese banks,…
BOJ says Japan’s banking system stable, warns of risks

BOJ says Japan’s banking system stable, warns of risks

A man wearing a protective mask walks past the headquarters of the Bank (Finance & Banking Trends) of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon/File Photo Overseas credit risk contained but some sign of worsening – BOJ Rise in U.S. yields to hurt Japan banks’ capital adequacy ratio BOJ urges banks to diversify…
Larry Summers warns global markets are bracing for Japan-style stagnation with central banks’ policy levers at risk

Larry Summers warns global markets are bracing for Japan-style stagnation with central banks’ policy levers at risk

Former US Treasury Secretary Larry Summers. AP Photo/Michel Euler Global financial markets are pricing in expectations of slow economic growth and low real interest rates, said Larry Summers, according to a Bloomberg report Wednesday. The former US Treasury Secretary warned that could suggest a return to “secular stagnation, or Japanization.” Japanization refers to conditions that have kept the Japanese economy…