Japanese Financial Growth by Charles A. Goodhart, George Sutija PDF

By Charles A. Goodhart, George Sutija

ISBN-10: 1349107476

ISBN-13: 9781349107476

ISBN-10: 1349107492

ISBN-13: 9781349107490

A number of papers offered on the overseas convention on jap monetary progress, held in London in October 1988. The papers conceal not just the topic of jap monetary improvement, but additionally the query of the way its most likely destiny styles may perhaps impact the worldwide capital market.

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Nevertheless Japanese banks' access to securities business in the Tokyo market is being gradually increased as a result of a series of policy relaxations by the MOF over the past decade. In 1979, banks were permitted to issue and deal in certificates of deposit; in 1981, the law governing banks' underwriting and distribution of government bonds was clarified, following which the MOF's restrictions in this area were also relaxed to the point where, since August 1987, banks have been permitted to sell government bonds on virtually the same basis as securities houses.

Finally, there are the beginnings of the breakdown in the distinction between banks and other types of financial institutions. I am also in agreement with Feldman's basic optimism about Japanese banking prospects, but I would suggest that the optimism should really be based on a rather different set of factors from those which he has suggested. 30 Comment In a period of rapid financial change it seems increasingly likely that it Will be difficult to understand the prospects for different types of institutions if we concentrate only on the characteristics of the assets and liabilities in which they deal.

Many large corporations are said to favour more flexible loans rate formulae as well, in order to avoid the costs of floating their own commercial paper. See Suzuki (1988) pp. 296-7. For an authoritative statement of this opinion, see Tachi (1988). See Feldman (1986) ch. 8 for a description of the timing of establishment of the interest parity relationship. This definition was somewhat narrower than those originally discussed, but still applied to 35 institutions, including city banks, trust banks, long-term credit banks, some local banks and several central organisations for credit co-operatives.

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Japanese Financial Growth by Charles A. Goodhart, George Sutija


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