Cross-border Activity of Japanese Banks

Author/Editor: Raphael W. Lam
Publication Date: November 22, 2013
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper explores the determinants of Japanese banks’ overseas expansion and assesses whether the growing cross-border activity will continue under the new macroeconomic policies referred as “Abenomics”. The analysis finds that Japanese banks are well positioned to scale up foreign exposures, thanks to their relative resilient balance sheets and continued growth in the region. Stronger domestic growth in Japan could mitigate the pace, but is unlikely to reverse the expansion as global and regional pull-factors play a more prominent role in the growth of cross-border claims. Increasing cross-border activity could pose funding risks and supervisory challenges and require continued close monitoring.
Series: Working Paper No. 13/235
Subject(s): Banks | Japan | Financial institutions | Nonbank financial sector | Bank supervision | Banking systems

Publication Date: November 22, 2013
ISBN/ISSN: 9781475520484/1018-5941 Format: Paper
Stock No: WPIEA2013235 Pages: 18
US$18.00 (Academic Rate:
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