Japan’s banking crisis 1991

Содержание

1. Japan’s banking crisis 1991
2. Banking crisis from 1991 - 2005One of
3. What did stimulate crisis?
4. FactorsBanks were allowed to hold common stock
5. Слайд 5
6. There basically three main causes of the
7. causesSecond cause, banks were allowed to hold
8. Third reason, the economic slowdown and price
9. Lost yearsFailure of Toho Sogo bank in
10. Public funds totaling JPY 1.8 trillion were
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Banking crisis from 1991 - 2005One of the main cause was the bursting of the asset proce bubble in the period of late 1980s to early 1990s.Bank loans were overextended particularly

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Слайд 1Japan’s banking crisis 1991
Sarkisov V.A.

Слайд 2Banking crisis from 1991 - 2005
One of the main cause

was the bursting of the asset proce bubble in the

period of late 1980s to early 1990s.
Bank loans were overextended particularly in risky areas with inadequate supervision and regulation over banks during bubble period. (loan portfolios were concentrated in property related business)

Banking crisis from 1991 - 2005One of the main cause was the bursting of the asset proce

Слайд 3What did stimulate crisis?

Слайд 4Factors
Banks were allowed to hold common stock on their balance

sheet and had accumulated sizable unrealized capital gains, boosting their

capital base. The decline of their capital base damaged banks ability to extend loans and take risks.

FactorsBanks were allowed to hold common stock on their balance sheet and had accumulated sizable unrealized capital

Слайд 5

Слайд 6There basically three main causes of the banking sector crisis

in the 1990s. First, bank loans were overextended particularly in

risk y areas with inadequate supervision and regulation over banks during the bubble period. Specifically, loan portfolios were concentrated in property – related businesses such as construction, real estate, and non bank financial services.

There basically three main causes of the banking sector crisis in the 1990s. First, bank loans were

Слайд 7causes
Second cause, banks were allowed to hold common stocks on

their balance sheet and had accumulated sizable unrealized capital gains,

boosting their capital base.

causesSecond cause, banks were allowed to hold common stocks on their balance sheet and had accumulated sizable

Слайд 8Third reason, the economic slowdown and price deflation in the

1990s aldo led to the growing levels of NPLs, especially

in the late 1990s and the early 2000s.

Third reason, the economic slowdown and price deflation in the 1990s aldo led to the growing levels

Слайд 9Lost years
Failure of Toho Sogo bank in 1991, in 1995

failure of other financial institutions.
In 1995 – 1996 government

injected JPY 680 billion

Lost yearsFailure of Toho Sogo bank in 1991, in 1995 failure of other financial institutions. In 1995

Слайд 10Public funds totaling JPY 1.8 trillion were injected on the

21 major banks in March 1998 to help banks meet

the required capital adequancy standards. Nevertheless, the government had to intervene in two major banks, The Long – Term Credit Bank of Japan (LTCB) and Nippon Credit Bank (NCB) which were temporarily nationalized in October and December 1988, respectively.
As a result .