Cross-border Activity of Japanese Banks

Waikei Lam

No 2013/235, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; bank; bank lending; exchange rate; loan; Japan; cross-border banking; Abenomics; funding risks; Japanese bank; overseas activity; core profitability; trust bank; banks' activity; overseas expansion; Foreign currency exposure; Global financial crisis of 2008-2009; Loans; Project loans; Syndicated loans; Global; Asia and Pacific; Europe (search for similar items in EconPapers)
Pages: 18
Date: 2013-11-22
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Citations: View citations in EconPapers (6)

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