Kurumba – Mr. Satoshi Nakagawa, Special Advisor to the President for Global Strategy Japan Credit Rating Agency, Ltd., and Chairman of the Association of Credit Rating Agencies in Asia captivated the audience during his presentation on the “Japanese Economy and Banking Industry” during in the Discover ABA session at the 35th ABA General Meeting and Conference held in Kurumba Resort on November 15 and 16, 2018.
In his presentation, Mr. Nakagawa explained the chronology of Japanese regional banks’ business and their core operating losses, the bond rating coverage (including Samurai) in Japan, the state of the Japanese economy, CPI changes and the impact of the Japanese demographic trend on the economy.
Other issues of great interest were his explanation of the land prices index and the deleveraging process in time.
The second part of his presentation concentrated on the conditions of the Japanese banks with respect to loans and deposits, the interest rate and the net interest margin trend, and the impact of QE on banks.
The conclusion of his presentation elaborated on the Japanese banks’ strategy of diversification, competition reduction, back to basic, and one interesting case study of a successful regional bank in Japan.