IMF Working Papers

Cross-border Activity of Japanese Banks

By Waikei R Lam

November 22, 2013

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Waikei R Lam. Cross-border Activity of Japanese Banks, (USA: International Monetary Fund, 2013) accessed November 21, 2024
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.

Subject: Banking, Financial crises, Financial institutions, Foreign currency exposure, Global financial crisis of 2008-2009, Loans, Money, Project loans, Syndicated loans

Keywords: Abenomics, Asia and Pacific, Bank, Bank lending, Banks' activity, Core profitability, Cross-border banking, Europe, Exchange rate, Foreign currency exposure, Funding risks, Global, Global financial crisis of 2008-2009, Japan, Japanese bank, Loan, Loans, Overseas activity, Overseas expansion, Project loans, Syndicated loans, Trust bank, WP

Publication Details

  • Pages:

    18

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2013/235

  • Stock No:

    WPIEA2013235

  • ISBN:

    9781475520484

  • ISSN:

    1018-5941