Bank of Tokyo-Mitsubishi Ufj

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  • Topic: Bank, Risk, Mitsubishi UFJ Financial Group
  • Pages : 17 (4643 words )
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  • Published : February 8, 2013
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OVERVIEW……………………………………………2 - History of Japanese Economy
- Japanese Financial & Banking System
- Mitsubishi UFJ Financial Group

BANK OF TOKYO MITSUBISHI UFJ………………16
- Structure
- Rating
- Capital
- Competition
- Services

BANK MANAGEMENT ANALYSIS…………...……29
- Asset Management
- Liability Management
- Risk Management
- Other Developments (Social Responsibilities)

REPORTS ANALYSIS………………………………..35
- Financial Sheets
- Financial Ratios

FORECASTING……………………………………….38
- Forecasted Financial Sheets

CONCLUSION………………………………………...40

I. OVERVIEW

A) History of Japanese Economy
The Japanese economy is the 3rd largest economy in the world, coming right behind the American economy and the economy of China. It’s one of the most studied economies among all due to its rapid growth in different eras. Its economy first interacted with Europe in the 16th century, and the Europeans were admirers of the country as it was one of the richest in metals and became a major exporter of copper and silver. In 1603, which is the beginning of the Edo period, the interaction between the Japanese and Europeans was extremely intense, and that, however, exposed Japan to Christianization waves, which lead Japan to enter a period of isolation in order to avoid such religious waves. Significant expansion of domestic industries increased during this phase. The construction trade grew along with banking dealing activities. The Edo period ended in 1868, and by that time Japan had developed many business trading and handcraft production centers which helped the economy growth positively. After the Edo period came the Prewar period in the mid-19th century. During this phase, Japan has opened to Western commerce again. Japanese leaders adopted a new western-based education system and sent thousands of students on scholarships to American and Europe. The Japanese government built new roads, railroads, dams, bridges, and ports. In order for the government to support industrialization, it decided to help private businesses in the allocation of resources process while stabilizing public growth at the same time. However, the biggest duty of the government was to help in providing the suitable economic conditions for businesses to grow and improve. The government, for instance, have built factories and shipyards that were afterwards sold to entrepreneurs at lower value prices, and many of these grew rapidly and helped the economy rise. The Japanese nominal wage rate was 10 times less than it is in America during this period, and this is considered as a strong statistical evidence from back then that shows how the Japanese economy expanded quickly. The postwar period started in 1945 until present. Between 1960 and 1980 within this period of time, the real economic growth has been called a “miracle” as it increased by an average of 20%, and by the late 80s, Japan has moved from being a low-wage economy to a high-wage economy. But in the late 1990s growth slowed due to the Bank of Japan’s failure to cut down interest rates quick enough to oppose the over-investment during the late 1980s. Japan therefore entered a liquidity trap and suffered huge budget deficits. By 1998, Japan still couldn’t stimulate demand to end the stagnation economic situation, and out of desperation, the Japanese government carried out “structure reform” policies with a purpose of squeezing speculative behavior from stock and real estate markets. Unfortunately, this step has lead Japan into a deflation economic situation between 1999 and 2004. Japan also used another technique called “quantitative easing”, which is increasing money supply from the Central Bank of Japan to raise the public expectation of inflation domestically, and by late 2005, the economy lastly sustained recovery. However, all efforts to counter price deflation failed. Below is a table showing the change in the Japanese GDP, USD exchange, inflation index, nominal per capita GDP, and the PPP...
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