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  4. Oct. 2010

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
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Oct. 2010

Asset Management

The Importance of Quantitative Analysis in Designing Post-Retirement Income Security Programs

Tatsuji Ohguri

Data-based estimates of changes in retirees' public pension and employer-sponsored retirement benefits, the main sources of post-retirement income, reveal that income inequality between low- and high-income retirees is likely to worsen over the next 30 years. Such quantitative analysis must be applied to formulation of post-retirement income security policies.

Chinese Capital Markets

Online Sales in China's Promising Auto Insurance Market

Yoshio Kato

China's auto insurance market is growing rapidly in tandem with car ownership. Some insurers have started selling auto insurance via telephone and/or the Internet in addition to the agency channel. Online insurance sales are expected to grow in China, but insurers must pursue growth in the online channel through strategies that seek to avoid conflict with existing sales channels.

Capital Markets

Another Kind of Sterilization

Tetsuya Inoue

Yen-selling intervention increases the dollar funds in our FX reserves. In the past, its majority was quickly used to buy UST. In the short term, such purchases risk undermining the interventions by reducing the interest rate differentials. Neutralizing the side effect requires the sterilization of dollar funds. In theory, Treasury sales and FX swaps between the US and Japanese authorities could be used. But these are not realistic given the cost to the US. In the long run, meanwhile, the decline in US interest rates could support the US economy and thereby curb downward pressure on the dollar. Thus, the use of Japan's FX reserves to buy UST effectively could become an element of US monetary policy.

Capital Markets

Debate About Extension of Equity Trading Hours

Hajime Minamimoto

The Tokyo Stock Exchange (TSE) is mulling whether to extend its trading hours. On July 25, it published a discussion paper that proposed specific approaches to extending trading hours and highlighted anticipated points of contention. The TSE solicited public comments on the discussion paper through September 10. It plans to announce its intended course of action by year-end. Following is a discussion of the background of the debate about extending of trading hours, interspersed with my personal opinions regarding certain key points.