1996 Fiscal Year Final Research Report Summary
Restructing of Financial Institutions and Financial Risks -focusing on Narrow Bank and Core Bank-
Grant-in-Aid for Scientific Research (B)
|Allocation Type||Single-year Grants |
Public finance/Monetary economics
|Research Institution||Nagoya University |
SENDA Jun-ichi Nagoya University, School of Economics, professor, 経済学部, 教授 (80022458)
|Project Period (FY)
1995 – 1996
|Keywords||narrow bank / core bank / universal bank / financial holding company / financial risks / payment system / deposit insurance / Chicago Plan|
Japan's financial institutions are now in the midst of restructuring towards more competitive and stable ones. They are, however, confronting with increasingly many and greater financial risks and bad loans. In these circumstances, I investigated the way for more stable and efficient financial system which also convenient to the users.
The research results are as follows.
(1) Private financial institutions naturally should strive to improve their techniques and systems of risk management, and the monetary authorities should implement the regulations or systems for more complete disclosure, market price accounting, risk-based deposit insurance rates, risk-based bank capital requirement, and prompt resolution procedure of failed institutions.
(2) In order to avoid the accumulation of settlement risks, the authorities should improve the system of so-called netting, cap system, as well as the lender of last resort function of the central bank.
(3) Is spite of these efforts, it will not be possible to completely remove the various risks in the age of liberalization and globalization. As a result, the narrow bank and core bank proposals should be seriously examined toward the introduction of them into Japan.
(4) We found that the Chicago Plan of 100% money provides us the important practical information useful for the introduction of the above mentioned banks.
(5) We are now in the stage where we should work out practical plans to introduce the above mentioned banks. These plans should include restructuring the postal savings into narrow bank.
Research Products (10 results)