Formed by Nomura Research Institute to discuss financial system functions with a focus on commercial banking in Japan. Standing members include both academics and practitioners.
Like the Japan-China Financial Roundtable, it met for the first time in June 2012.
The Japanese environment for commercial banks has remained a difficult one since the financial crisis of the 1990s, with banks facing an extended period of low growth, low interest rates, and large imbalances between loans and deposits. In the years to come, commercial banks will be asked to play a role as large as that of the capital markets themselves in terms of 1) reallocating economic resources amid a shrinking population and changing division of labor with the emerging economies; and 2) responding to new economic needs driven by the aging of society.
A growing number of Japanese companies, both large and small, are moving their operations overseas, and particularly to the emerging economies. That should provide an important source of support for the Japanese economy by allowing it to benefit from overseas growth. Japanese financial institutions are supporting these efforts by actively pursuing commercial banking operations in those countries.
The Banking Panel offers a forum for academics and practitioners to pool their knowledge and discuss the commercial banking functions of Japanese financial institutions amid a changing financial and economic environment in Japan and elsewhere. While there have been similar undertakings in the public sector, this panel seeks to approach the issue from a private-sector perspective. It also aims to offer its own unique contributions by drawing on the work of the Financial Markets Panel, such as the Panel’s talks on banks as a transmission mechanism for monetary policy.
Although the topics discussed by the Banking Panel are closely related to Japan’s financial economy, it is hoped that they will also contain suggestions for addressing the financial system issues faced by Europe and the US in the post-GFC era. Sharing the Panel’s discussions with policymakers, academics, and practitioners in Japan and elsewhere will be helpful in that sense. But inasmuch as the Banking Panel is also expected to touch on micro-level issues, care will have to be taken with the opinions and facts presented during discussions, and published proceedings will need to strike a balance between these sometimes conflicting needs.