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  4. Apr. 2011

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

Apr. 2011

Capital Markets

How to Treat Markets in Times of Crisis

Sadakazu Osaki

The earthquake that struck offshore Tohoku on Friday, March 11 and ensuing mega-tsunami inflicted severe damage across much of eastern Japan. Most notably, the tsunami destroyed critical equipment at Tokyo Electric Power Co.'s Fukushima Daiichi Nuclear Power Plant. On the 12th, a hydrogen explosion at the plant raised concerns about radioactive emissions.

Capital Markets

Thoughts Following G7 Intervention

Tetsuya Inoue

If reduced liquidity in FX markets was responsible for the surge in the yen that triggered the G7’s intervention, currency authorities and central banks seeking to prevent a recurrence should (1) expand the knowledge of pricing systems for supplying liquidity and (2) flexibly administer central bank swaps and complementary lending facilities to facilitate yen funding. They should also consider revamping the disclosure rules for FX margin trades. Inasmuch as FX intervention by developed nations is intended to quell concerns that “excess volatility” will destabilize global financial markets, discussion and decision-making by G7 member nations,which have deep vested interests, will remain an effective tool.

Banking

Warehouse Finance Reawakened

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Public warehouses' monitoring of inventories stored on their premises adds substantial value to asset-based lending. The revival of long-dormant warehouse finance should prove to be a major catalyst for the warehouse industry to branch into logistics financing.