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  4. Jun. 2006

Capital Markets & IT -lakyara

Financial institutions are under constant pressure to reduce costs, improve operational efficiency, adapt to regulatory changes and grow their business. NRI believes that a combination financial knowledge and information technology are crucial to the industry’s growth and development. Through our lakyara reports, NRI identifies the various capital markets and IT issues impacting our clients and the future of their business.
*Organization names and job titles are current as of the publishing dates

Jun. 2006

Brokerage Business

Regional Banks and Credit Concentration Risk

Kiyoto Shimba

A final resolution of the nonperforming loans problem, until recently the most important issue facing Japanese financial institutions, is now in sight. Quantitative credit risk management techniques have also been widely adopted. The next task for banks in terms of credit risk management is the analysis and management of credit concentration risk. This issue presents serious difficulties for Japan’s regional banks and concerns their very reasons for existence.