| Project/Area Number |
22K01570
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Review Section |
Basic Section 07060:Money and finance-related
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| Research Institution | Ritsumeikan Asia Pacific University |
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Principal Investigator |
BARAI Munim 立命館アジア太平洋大学, 国際経営学部, 教授 (50584017)
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| Project Period (FY) |
2022-04-01 – 2025-03-31
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| Project Status |
Granted (Fiscal Year 2023)
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| Budget Amount *help |
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2024: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2023: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
Fiscal Year 2022: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
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| Keywords | Bank of Japan (BOJ) / Quatitative Easing (QE) / Bank Portfolio / Interest Rate / Return on Assets (ROA) / Return on Equity (ROE) / Non Performing Assets / Quantitative Easing / Bank of Japan / Covid-19 / Financial Performance / Japanese Banks / Quantitative Easing (QE) / Portfolio Rebalancing / Tapering |
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| Outline of Research at the Start |
In 2013, BOJ started infusing money into the economy under QE2 policy to start growth and overcome deflation. To address the impacts of low interest rates due to QE2 and low borrowing demand, they started rebalancing their portfolios from safe assets to risky assets.Though BOJ is still pursuing QE2 to overcome the Covid-19 challenge, it has the intent to a gradual tapering of QE post-Covid-19 context. This research aims to investigate the post-2013 QE-induced changes in the portfolio distribution and financial performance and possible impacts of banks due to the rolling back of the QE policy.
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| Outline of Annual Research Achievements |
For the academic year 2023, I had a lot of success in my research. As part of these efforts, I co-edited a book for international readers that addressed concerns and current economic status pertaining to Bangladesh and India. I submitted the manuscript to Palgrave Macmillan; Singapore and the book was published in June of 2023. Five of the book's twelve chapters were written by me in collaboration with other authors. A great number of experts and academics are expressing their approval of the book. In addition, I was a co-editor of an issue of a journal listed on Scopus that focused on COVID-19 and economic and social innovations to handle the situation. I coauthored two research papers that are offshoots of my JSPS research and got them published in some good-quality Q1 journals. Two more papers have been published in the Scopus Indexed journals. The focus areas of these papers are banks, remittances, banks, and macroeconomic conditions of various countries. I also took a historic journey to India during the academic year 2023, during which I participated in two international conferences and delivered four invited speeches papers in face-to-face arrangements. I attempted to contribute additional researchers to the research networks while I was engaged in these research efforts.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
I have just completed calculating various financial variables of Japanese banks, such as Earnings After Tax (EAT) or Net Income (NI), Profit Margin (PM), Return on Assets (ROA), and Return on Equity (ROE), operating efficiency (Operating Expenses/Operating Income), and other related ratios. The banks included City Banks, Regional Banks Type I and Type II. Those rations are instrumental and will be used in measuring and analyzing the financial and operational performance of the banks. I also have assessed their overall risk exposure through the ratio of Total Equity (Net Worth) to Total Assets, Loan Loss Reserve, and Non-Performing Assets (NPA) from 2013 to future Quantitative Easing (QE) tapering scenarios. This quantitative analysis involved data from BOJ, various commercial banks in Japan, databanks, etc. The outbreak of the Ukraine war has significantly impacted the perception of financial risk assessment related to Collateralized Loan Obligations (CLOs) and other banking investments abroad. I also conducted an experience survey with former BOJ executives to understand the possibilities and implications of QE tapering and interest rate change by BOJ. In addition, I dedicated time to drafting research papers for the field. These show that my research is progressing smoothly.
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| Strategy for Future Research Activity |
In AY2024, my research commitments and activities related to my Kakenhi Research will be many. From now on, I will be focusing on the following activities:
Detailed analysis of data and Rebalancing and Banks Performance: I have already computed various financial performance ratios like NI, ROA, ROE, Earning Ratios, Deposit Ratios and so on for City Banks, Regional Banks Type I and Regional Banks Type II. Now these data and results will be analyzed for finding impacts in terms of their performance and rebalancing of their portfolios.
Writing a journal paper on the recent interest rate change by the Bank of Japan and its possible impacts on the banking sector of Japan.
Preparation or a working paper/ journal article on the possibility of any initiation of the process to normalize the of monetary policy of Japan through QE Tapering. The tentative impact of such initiative on the Banking Sector Japan will be analyzed.
Along with research activities mentioned, I would like to attend international conferences or seminars to present research papers in Japan and abroad online and in face-to-face arrangements. Moreover, I have the plan to submit a book proposal to Palgrave Macmillan or Oxford University Press. It will be related to the economic, social and political progress of various countries including Japan. The book will also try to argue that Indian Moment has finally arrived to lead the global south. While doing these research activities, I would like to see more researchers added to the research networks of researchers and academics I have already developed.
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