How Japan's Banking Industry Responded to Great East Japan Earthquake

In response to this panic, a committee was established to find the flaws of the current banking system. This committee, the National Monetary Commission, found there were two main flaws dominating the system. First, the currency was not responsive to changes in demand. (Born...13). This meant that the bank had a fixed amount of currency, regardless of the

Natural disasters are a huge challenge for the planet because of the adverse effects that are associated with them. One of the major earthquakes to have shaken the earth is the Great Sendai Earthquake or Great Tōhoku Earthquake that occurred in 2011. The event started when a powerful earthquake hit the northeastern Japan on March 11, 2011, and resulted in a widespread damage on land. A series of massive tsunamis later devastated many parts of the coastal regions of the country with the worst affected being the Tohoku region. The tsunami further resulted in a major nuclear accident that damaged distant regions on a power station located along the coast. The economic effects of the tsunami qualify it as one of the major natural disasters because it affected Japan’s economic stability as the country ended up resorting to importing as an alternative to cover the loss.

Today banks are regulated, unlike in time prior to this event which partly caused the “epidemic of bank failures”. People now commonly have at least some knowledge of how banks function, contrasting people of the banking crisis

In the 1900s, Japan faced a lot of economic obstacles. Due to its location on four moving tectonic plates, Japan experiences earthquakes more often than most other countries, Banks, at the time, struggled to keep economic activity stable after earthquakes and even attempted to regulate the flow by granting companies the ability to sell their products without having a drastic change in price. Following the discussion of earthquake bills and such, news was brought to the attention of the Japanese government that a bank in Tokyo had finally gone bankrupt. This sent many into a frenzy trying to get a hold of their money from banks, and in turn, many banks closed. However, this Japanese bank was indeed, not bankrupt, it was only struggling,

Demetriou, Danielle. "Japan Earthquake, Tsunami and Fukushima Nuclear Disaster: 2011 Review." The Telegraph. Telegraph Media Group, 19 Dec. 2011. Web. 03 May

This paper identifies and analyzes the major issues and consequences which the most recent earthquake in Japan brought to the business community. It presents some courses of actions and their justifications on how the company should proceed in its industry in order to eliminate or at least minimize the negative impacts of this earthquake on its normal business operations.

Professor Matthew Feely is an adjunct professor at the Columbia business school and a former navy officer of the logistic center at the US Navy. In this lecture, he talks about the decision-making process as an officer in regard to the 2011 Japan’s earthquake.

Good morning, at this moment we have breaking news, an catastrophic eartquake of 9 magnitude on the richter scale hit Japan a few minutes ago, this event caused a tsunami with waves up to ten meters. The epicentre was aproximately 70 kilometers east of the Oshika peninsula of Tokio and the hipocenter at an underwater depth of approximately 29 kilometers. The number of casualities is 24608 and the death tool is estimated around 15894 dealths. The lenght was aproximate six

The deregulation of financial markets catalysed by Globalisation worldwide has impacted on the amount of trade within the Japanese economy beneficially allowing easier access to foreign currencies, facilitating a higher flow of goods between nation, by relaxing laws that severely prevented foreign buying of currency, and floating the yen. These drivers have helped boost Japan's trade and recovery from its recession. Technology has allowed finances to be traded and communication to be near to instantaneous. This has increased dramatically the amount of FDI into Japan largely thanks to the numerous strategies the Japanese government has taken to promote economic growth and hence development. Finance and Foreign Direct Investment (FDI) have increased as a direct result of globalisation doubling from $63 billion in 2001 to $144 billion in

"Often it takes a huge crisis to make a society change," says Toshihiko Hayashi, an economics professor at Doshisha University in Tokyo, who has studied the legacies of natural disasters. "For Japan, even two lost decades after the bubble burst were not enough to fundamentally change the country's economic and political systems. But this crisis is different. It could be the catalyst that finally changes Japan."

Nowadays, many industries are developing such as machines, technology, and other fields in the world. Therefore, experts make an accurate estimate what will happen to futures. Economists estimate rates of economic growth or impacts of crises or other economic phenomenon. However, what if natural disasters occur in somewhere, economists still can estimate economic phenomenon or prepare what they have to do? Do they expect exchange rates will fall, and their countries’ economy will crisis? For example, Japan 's earthquake and tsunami. The authors expected that the volume of Japan’s exports reduced by between 0.5% and 1.6%, and the volume of imports increased between 0.4% and 1.3% (Hubert Escaith). These numbers can say strongly that the natural disaster impacted on Japan’s international trade. Furthermore, Japan has one of the largest economics in the world, and fourth largest in trades in goods and services in the world at that time (Hubert Escaith). This is an example of natural disasters affecting international trade.

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

The current governor of the Bank of Japan is Mr. Haruhiko Kuroda; he has held this position since March 19, 2013. Before he served as the Bank’s governor, Mr. Kuroda was “the President of Asian Development Bank”

This chapter is about the background of 2007-2008 financial crisis. The 2007-2008 financial crisis has a huge impact on US banking system and how the banks operate and how they are regulated after the financial turmoil. This financial crisis started with difficulty of rolling over asset backed commercial papers in the summer of 2007 due to uncertainty on the liquidity of mortgage backed securities and questions about the soundness of banks and non-bank financial institutes when interest rate continued to go up at a faster pace since 2004. In March 2008 the second wave of liquidity loss occurred after US government decided to bailout Bear Stearns and some commercial banks, then other financial institutions took it as a warning of financial difficulty of their peers. In the meantime banks started hoarding cash and reserve instead of lending out to fellow banks and corporations. The third wave of credit crunch which eventually brought down US financial system and spread over the globe was Lehman Brother’s bankruptcy in August 2008. Many major commercial banks in US held structured products and commercial papers of Lehman Brother, as a result, they suffered a great loss as Lehman Brother went into insolvency. This panic of bank insolvency caused loss of liquidity in both commercial paper market and inter-bank market. Still banks were reluctant to turn to US government or Federal Reserve as this kind of action might indicate delicacy of

Private banks, regardless of where they operate all over the world, also facing similar demands arise from the