1. “CURRENT GLOBAL FINANCIAL CRISIS
AND ITS IMPLICATIONS ON
INTERNATIONAL FINANCIAL
INSTITUTION:
THE CASE IN JAPAN”
GROUP: MARIA SHARAPOVA

2. 1. Objectives
2. Discussions & Findings
3. Suggestions For Future Research
4. Conclusion

3. (I). To acknowledge on the current Global
Financial Crisis that have occurred
(ii). To identify the implications of current
global financial crisis upon Japan
(iii). To highlight the impact of current
Global Financial Crisis towards Japan’s
International Financial Institutions (IFI)

4. (I). Japan’s Background
(ii). Global Financial Crisis History
(iii). Impact of Crisis on Japan:
a. International Financial Institutions (IFI)
b. Financial System & Financial Banking
(iv). Reasons Why Japan Could Be Affected
(v). Reasons for Japan Less Exposed to the Market
Turmoil
(vi). How Japan Has Recovered

5. (i). Japan’s Background
 Current population is fewer than 127 million
 Is known with its highly efficient & competitive
economy
 Japan has turn into a mature industrial economy
 Do owned the natural resources
(U.S Department of State, 2012)
 Has shifted its economy oriented to East Asia
 Still, is the most productive & advanced economy in
Asia
 Manufacturing share remains competitive among the
developed economies
(Grimes, 2009)

6. (ii). Global Financial Crisis History
 Ito (2009): 3 Stages - The Beginning (Feb 8, 2007), 2nd
Stage (Aug 9, 2007) & Final Stage (Sept 15, 2008)
 Malik, et. al. (2009) & Kawai (2009): Another reason
is the downfall of U.S Subprime mortgage industry
 Ngowi (2009): Officially start in U.S (Sept 2008)
when inadequate liquidity from financial markets
credit crunch
 Mckibbin & Stoeckel (2009): bursting of housing
bubble, sharp rise in equity’s risk premium &
household risk due to reappraisal of firms risk

7. (iii). Impact of the Crisis on Japan
a. International Financial Institutions
 Kono (2009): Japan’s IFI have lost around 3.2 trillion
yen ---- Losses stem from U.S investment, economic
downturn & fall of stock prices
 Yamaguchi (2009): Japan’s retail banking performance
has deteriorate & sluggish sales of the mutual funds ---
Low profitability
 Malik, et. al. (2009): Japan’s IFI reluctant to lend money
due to the subprime mortgage crisis
 Grimes (2009): The IFI have to unfreeze & resumed
their basic function of allocating capital in the private
sector

8. b. Japan’s Financial System (FS) & Financial
Banking (FB)
 Have been affected due to the financial markets
volatility
 FS was badly affected caused by share prices
sharply decline
 FB profitability (increase the credit cost) was
impacted by real economy deterioration
 FS was remained sound as FB losses were limited
Sato (2009)

9. (iv). Reasons on why Japan could be Affected
 Japan was delaying on recognizing the
nonperforming assets severity
 Japan’s accounting & disclosure standards were
imperfect
 5 areas of major structural problems & policy
weaknesses
(i). Japan’s banks weak & unclear disclosure rules
(ii). The regulators attitude on “wait & see”
(iii). Synch deregulation
(iv). Heavy reliance on administrative guidance
(v). Japan’s little policy transparency
Ulrike (1996)

10. (vi). How Japan Has Recovers
 Japan has recovered on the its strategy cost
 During the recovery, there are 3 consequences:
(i). Mistaken belief on the economy will rebound
quickly
(ii). Japan’s MOF rather wait until economic
growth was restored
(iii). Japan's economy grow very slow
Patric (1998)

11. (i). Get to know the basic about the particular
countries & the crisis
(ii). Understand of whatever information that have
been gathered
(iii). Make sure the journals or any articles are related
with the project topic

12.  Not only Japan has been affected by the Global
Financial Crisis
 The crisis occur lead by numbers of causes
 Japan’s has been affected in several aspects
 Nonetheless, Japan was not severely affected &
managed to recover
 Limitation in preparing this assignment:
(i). In finding the journal that really suits with
our project title
(ii). Timing
(iii). In understanding the journals