On July 20, 2020, the Bank of Japan was newly established in the Bureau of Clearing Institutions“Digital currencyGroup ", will focus on the digital currency (CBDC) issued by the central bank, and explore how to build the best settlement system in the digital society.The team has about 10 members, and the team leader is Aono Congxiong[1]。
Recently, the Bank of Japan announced that it would maintain the benchmark interest rate at 0% - 0.1%, in line with market expectations.The Bank of Japan said it would determine the scale of bond purchase at its next meeting.... Details
The Bank of Japan is Japanesecentral bankIn Japan, it is often referred to as Bank of Japan (にちぎん Nichigin).
The representative of the Bank of Japan is its president.The current president took office on March 20, 2013Haruhiko Kuroda 。
According to the Bank of Japan Law, the Bank of Japan is a legal person, similar to a joint-stock company.Capital fundIt is 100 million yen, of which 55 million yen is funded by the Japanese government.The "contribution securities" equivalent to stocks have been listed on the JASDAQ market in Japan (stock number: 8301).Unlike ordinary stocks, noneThe general meeting of shareholdersThe dividend is also limited to "5%".
Historical development
Announce
edit
In June 1882, the Bank of Japan Regulations were promulgated.
Bank of Japan Tokyo Branch
It was opened on October 10, 1882.
In February 1942, the Bank of Japan Law was promulgated (Showa 17 Year Law No. 67, hereinafter referred to as the "Old Law")
On May 1, 1942, the reorganization of legal persons was carried out according to the old law.
On June 18, 1997, the Bank of Japan Law was re enacted (Heisei 9 Law No. 89, hereinafter referred to as the "New Law").
The new law came into force on April 1, 1998.
On March 16, 2018,Japanese ParliamentPassed the central bank personnel appointment proposal submitted by the government and agreed to the current presidentHaruhiko Kuroda Remain governor of the Bank of Japan.[3]
On July 20, 2020, the Bank of Japan was newly established in the Bureau of Clearing Institutions“Digital currencyGroup ", will focus on the digital currency (CBDC) issued by the central bank, and explore how to build the best settlement system in the digital society.The team consists of about 10 members, and the team leader is Aono Congxiong.This is to reorganize the CBDC research group set up by the Bank of Japan in February 2020 and upgrade it to a formal department.This department will also be responsible for conducting joint research on digital currency with the European Central Bank (ECB) and other overseas central banks.The Bank of Japan is also accelerating the preparation for the issuance of digital currency in the context of active global discussions on digital currency[1]。
On March 18, 2022, the Bank of Japan issued a statement saying that it wouldbenchmark interest rateMaintain at - 0.1%, and change the 10-year periodTreasury bond yieldThe target remains around 0%.[5]
On April 7, 2023, the cabinet meeting of the Japanese government decided to appoint economist Yoshio Ueda as the 32nd governor of the Bank of Japan from April 9.The term of office is five years.[7]
On April 14, 2023, the official website of the Bank of Japan officially released a new version of banknotes, including three denominations of 10000 yen, 5000 yen and 1000 yen.The central bank expects that the new version of banknotes will be issued and used in the first half of fiscal year 2024 (from April 2024).[9]
On April 28, 2023, at the monetary policy meeting, the Bank of Japan decided to maintain the large-scale monetary easing policy of setting the short-term interest rate at negative 0.1% and inducing the long-term interest rate to around 0%.[10]
On April 26, 2024, the Bank of Japan held its benchmark interest rate at 0-0.1%, in line with market expectations.[11]On June 14, after the monetary policy meeting, the Bank of Japan announced that it would maintain its policy interest rate target at 0 to 0.1%.The central bank also said that it would reduce the purchase of government bonds in the future, and decided on a specific plan to reduce the purchase of government bonds in July。[12]
function
Announce
edit
The Bank of Japan performs the following functions in accordance with the Bank of Japan Law:
On November 25, 2004, several staff members of the Bank's Qianqiao Branch took out four linked banknotes that they thought were of rare value from the newly issued banknotes on November 1 of the same year while their supervisors and other management personnel were away, and the event of their own non linked banknotes being replaced was confirmed in the internal investigation based on the public information.The staff of the bank was suspended for up to one week, and the Bank of Japan also publicly apologized in the form of an institution.In the report, however, it is said that this is a "non-profit purpose". "It is not theft but replacement, and there is no amountActual damage”, emphasizing that this is only a minor incident, which lacks the position of "people in financial institutions contact 'public money' for personal purposes behind their superiors", and finally ends with a lighter punishment.
When the Bank of Japan rashly raised interest rates and led the economy back into recession, government intervention became more frequent.In August 2006, the Japanese government even violated the rules and revisedprice indexCalculation method to reduceInflation rateSo as to reduce the necessity for the Bank of Japan to raise interest rates again.Although the Japanese government regularly adjusts the CPI compilation method every five years, the timing of this time is doubtful, because the time of revision ismonetary policyHistorical turning point and CPI yeargrowth rateShortly after it turns positive.
3. Before the meeting of the monetary policy membership of the Bank of Japan on January 18, 2007, the market had generally expected that the Bank of Japan would raise interest rates by 25 basis points at the meeting.However, as Japanese government officials took turns to orally persuade and send representatives to the interest rate monetary policy meeting, the Bank of Japan finally yielded and kept the interest rate at an ultra-low level of 0.25% with a 6:3 voting result.
The exchange rate of the yen was 360 yen to the dollar in 1970 and 135.5 yen in 1988, with an appreciation of nearly three times.Bank of Japan andForeign investment of enterprisespurchasing powerGreat increase.Based on exchange rate analysisforeign exchange reserveAgainst the background of sharp increase, yen appreciation and bank surplus funds,Foreign investment incomeThe growth rate is greater than the appreciation rate of the yen. The Bank of Japan actively seeks external expansion. Based on the interest rate analysis, it assumes that the cost of yen capital andeuroThe interest rate is roughly the same, and enterprises can get two kinds of interest rates at willMonetary capital, then the Japanese Yen BankMonetary advantagesSmall or even non-existent.
In the 1980s, the two conditions mentioned above were not met, and the yen had obvious advantages.At the same time, the appreciation of the yen, especially since 1985, has led to a sharp increase in the book value of Japanese banks' capital and the improvement of international ratings, which has enabled banks to obtain cheap funds and overseas assetsRapid expansion。This isIndirect effect。After 1990, with the liberalization of interest rates, the above two conditions gradually established and played a role, and the Japanese yen advantage of the Bank of Japan declined, but the indirect effect of yen appreciation was stillNot to be ignored。
In the 1980sfinancial liberalizationAgainst this background, the Bank of Japan graduallyDeregulationFor example, the restrictions on banks' participation in foreign exchange transactions and overseas institutions' provision of European yen loans to domestic customers were relaxed, and international business increased.But interest rate controlSeparate operationEtcPolicy maintenance, forcing some banks toCircumvention of control, especially in overseas marketsOffshore marketEstablish institutions to carry out domestic restricted business.Implement interest rate control, and the domestic interest rate is lower thanEuropean and American marketsInterest rate provides favorable conditions for Japanese banks to finance in China, lend in the United States, allocate resources globally, and develop internationally.The protection and support of the Japanese government eliminated the worries of internationalization of Japanese banks.Stimulate them to implement the scale expansion strategy.According to statistics, the overseas assets of the Bank of Japan reached US $341.1 billion in 1984 and US $2181 billion in 1993.
In terms of foreign investment policy,European marketStrict control, Japanese banks in EuropeMarket acquisitionLess, mainly new institutions;The US market is relatively loose,Bank of AmericaTo improvecapital adequacy ratioA large number of loans were sold to foreign banks, enabling Japanese banks to take over many American banks at a reasonable price.U.S.Amarket size Big, then the United StatesBanking LawProhibition of interstate operation, banking and securities insuranceMixed operationBanks are generally small in scale, separated from different cities, and cannot provide customers with comprehensive servicesfinancial service It also provides favorable conditions for the Bank of Japan to enter and carry out relevant businesses.
Resource advantages
Announce
edit
brief introduction
The resource advantages of Bank of Japan include large scale, low financing cost, stable customer relationship andGovernment protectionSo as to seize the opportunity and launch an all-around attack to achieve extraordinary growth.For a long time, Japan's domestic market has not been open enough, the regulatory policy is strict, the government provides implicit protection for banks, and the bank bankruptcy rate is lowBanks and enterprisesmutual holdings , equity is relatively stable,Stock price fluctuationNot big, lack of banksmarket competition The pressure and power of innovation were insufficient in international competitiveness. However, due to theeconomic environmentDahao, the global expansion of Bank of Japan has rich resource advantages.
Customer relationship advantages
One is the advantage of customer relationship, that is, the Bank of Japan and the enterprise hold mutual shares andBanking system, stable relations,Enterprise globalizationIt has promoted the globalization of banks.so-calledMain bankSystem（mainBank) is that every enterprise has a main bank, which is not onlyEnterprise fundsThe main supplier ofoperating activities。Many studies show that the internationalization of the Bank of Japan is in line with the followingCustomer strategy，Enterprise internationalizationMutual promotion with bank internationalization, required by Japanese overseas enterprisesShort term fundsMainly provided by overseas institutions of Bank of JapanLong term fundsJapanese bank loans account for about 25%.
Low cost advantage of capital
Second, fundsLow cost advantage。At home, due to the high savings rate and loose monetary policy (mainly to offset the negative impact of the appreciation of the yen),Deposit interest rateLevel belowEurope and AmericaInternational market interest rate, bankCost of liabilitiesLower.In foreign countries, due to the large scale and market value of banks, the international rating is high,Financing interest rateIt is lower than that of British and American banks.For this reason, many Japanese banks adopt cheappolicy of expansionCompetition with local banks has had a great impact on local banks.
Scale efficiency advantage
Third, scale efficiency advantage, that is, the Bank of Japan has a large scale,cost efficiency Higher.In terms of assets, the Bank of Japan has a large scale and the fastest asset growth.In 1990, the five largest banks in the world were Bank of Japan.From 1985 to 1989, the average asset growth rate of the top 11 Japanese banks reached 12.6%, higher than that of German banks, British banks, French banksSwiss Bank、Bank of AmericaEtc.In terms of income, from 1986 to 1989, the average annual income growth rate of Japanese banks reached 16%, higher than that of British banks, German banks, Swiss banks, French banks and American banks.In terms of operation, the Bank of Japanmarket shareMaximize as the goal, and implement cheapExpansion strategy, compared with banks in other countries,Return on assetsThe return on equity is low, but the cost income is relatively low, the per capita income and expenditure growth rate is high, the income growth rate is greater than the expenditure growth rate, and the management is efficient.
current accountSurplus continues to increase, exacerbating the pattern of domestic capital surplus, resulting in two consequences: first, domestic nonProduction fieldIncreased investment,Asset priceupsurge.According to relevant analysis, from 1985 to 1990, Japanland price It has increased by more than twice, and the price of new houses is close to 10 times the annual income of residents,stock market indexThe growth rate was 31%.This led to the bankAsset sizeAnd the market value increased significantly, and the expansion was accelerated through the convenience of stock market financing.Second, overseas investment increased, and Japan became the largest creditor country.In the early 1980s, the government and non banks in Chinafinancial intermediaries purchaseUS Treasuries, real estate and other assets, and later expansion of overseas banks,Loan investmentGreat increase.
Root cause of decline
Announce
edit
Since 1991, the Bank of Japan has been forced to adjustinternationalization strategyFrom the past global attack to the key defense of the US market, we have chosen to withdraw.1991, JapanCity Bankoverseas branchThe assets of banks decreased by 13%total assetsDown 5%, which isWorld War IIin the futureBank assetsDecrease in the first year.In the 1990s, the Bank of JapanglobalizationRecession isExternal marketChange in conditions,Internal resourcesThe natural result of weakening advantages.However, through in-depth analysis, the Bank of Japan did not take advantage of the favorable opportunity to improveInternational competitivenessOne sided pursuit of maximization of scale and failure to become a local local bank is the root cause of its unsustainable international development.
In short, as the marketenvironmental deterioration，Bank resourcesOnly advantages remainCustomer relationshipAdvantages and government protection policies, but not enough to make up for the cost loss of the bank's international expansion, so it is forced to reduce overseas assets and liabilities and adjustExpansion strategy。
Strategic mistakes
Announce
edit
Bank globalizationdevelopment strategy Mistakes are aimed at increasing asset scale rather than improving capability.First of all, I neglected to study the overseas market, thinking that entering the international market to conduct business is not too different from the domestic market, so I can easily occupy the overseas market and obtainscale economyAdvantages and foreign banks inRetail businessTechnical experience in.
statesideReal estate bubbleIn serious cases, the Bank of Japan continued to participate in theSyndicated loan, strongly support Japanese enterprises toReal estate investmentAnd acquisitions, some evendirect investmentUS real estate, suffered huge losses as the US real estate bubble burst.From 1977 to 1992, the proportion of overseas assets in total assets of most Japanese city banks increased nearly three times, reaching 35%.However, the proportion of international business profits in total profits is only about 20%.However, the international business profits of American, German and British banks account for between 1/3 and 1/2.
Exploiting the local market completely depends on the advantage of capital cost and implements low pricecompetitive strategy , established business relations with non Japanese customers.However, except for loans, there are few other business products, which cannot provide complexValue added servicesThere is no deep cooperation relationship.along withbubble economyDisappeared, low cost capital advantage of banks disappeared, newCustomer churn。Nolle's contribution to theProfitability, efficiency and credit qualitycomparative analysis , found Bank of JapanReturn on assets、Return on equityVery low, the management level of customer credit rating is low, which is totally dependent on lowInterest rate policyAttract customers without giving full play to cost efficiency advantages.Although the cost of capital of Bank of America is relatively highProduct serviceAnd good riskManagement ability, always able to obtain certain benefits in the fierce market competition, reflecting strong competitionDevelopment capacity。
Mechanism defects
Announce
edit
As we all know, human resource mechanism is the key factor to determine the core competitiveness of banks.For foreign banks, in a strange market,Human Resources ManagementMore importantly, it directly determines the success or failure of bank operation anddevelopment potential。When acquiring local banks, foreign employees have a lot of information, knowledge, experience and customer relationships, which is the real value.The Bank of Japan continues to use domestic banks for overseas institutionsManagement mechanism, do not attach importance to localizationOperation management, which decides that it is impossible to take root and blossom in the local market and achieve success.First of all, the local staff with knowledge and ability are not paid enough attentionmanagement layerAll of them are Japanese or Japanese Americans. Local employees are often regarded as outsiders and excluded from the core management. Their enthusiasm is not high,Sense of belongingPoor.The expatriate staff of Bank of Japan worked together with the local staff, but due to the lack of effectiveInformation exchangeThe local employees have no motivation and are unwilling to waste time guiding Japanese employees.Japanese employees obtain information abouttechnical knowledgeDifficulty, whether you can get it depends on whether you are smart and can provide some exchangeable things to local employees.Foreign enterprises from other countries employ Americans or English speaking Europeans, and focus on localization, which is more acceptable to the local public.
The Bank of Japan has a certain international understanding of overseas marketsKnowledge and experienceThe Bank's expatriate employees paid insufficient attention to theirTechnical InformationNot fully utilized, converted intoValue addedAnd new competitiveness.Bank pieThe purpose of overseas training is to understand the international market and update employeesknowledge structure Important way.Many Japanese banks also often send personnel to overseas training, but what they value most is the way of training.That is to say, the training is regarded as a reward for excellent employees, and the incentive andExternal publicityThere is no innovation mechanism for the application of foreign technical knowledge information.In addition, at home and abroadmarket environmentThe difference is large, the application space of foreign technical experience is limited, and the leaders do not understand and pay attention to it, further limiting the improvement of bank competitiveness.
Poor management
Announce
edit
In addition, the Bank of Japan's foreign institutionsOrganizational managementIneffective, did not play its due role.Acquisition of local institutions is a way for banks to acquire and enhancecompetitive edgeImportant means.However, whether the expected purpose can be achieved depends on whether the effective organizational management structure can be established, the unique functions of overseas institutions can be brought into play, and the timely transmission and reasonable application of foreign technical information can be ensured.Bank of Japan's acquisition of banks is subordinate to the goal of maximizing the scale, and institutional integration is not in place,information transferNot smooth,Out of control management, neither can playsynergistic effectAnd failed to gain access to the international marketadvanced techniqueExperience to improve the competitiveness of the Parent Bank.
