SlideShare une entreprise Scribd logo
1  sur  16
Télécharger pour lire hors ligne
MONEY MARKET IN JAPAN
(VIS-A-VIS INDIA)

Akarshi Jain
Semester VI
B.B.A, LL.B. (Hons.)
-
WHAT IS MONEY MARKET?
Financial instruments with high liquidity and
very short maturities are traded
 Used by participants as a means for
borrowing and lending in the short term, from
several days to just under a year
 Money market securities consist of
negotiable certificates of deposit (CDs),
bankers acceptances, Treasury bills,
commercial paper and repurchase
agreements (repos)

INTRODUCTION TO THE JAPANESE MONEY
MARKET
Lehman Shock in 2008
 Sharp Dip in the Money Market operations
 Till 2011, stable and flat operations.
 Recently grown mainly due to increase in
Repo trnsactions
 However, still below the level prior to 2008

Amounts Outstanding in the
Money Market

250
200

150
100
50

2007

2008

2009

2010

2011
CALL MARKET IN JAPAN
Significant decrease after Lehman Shock
 Collateralized Call Market: Increased:


a)



Regional Banks shifted their
funds because of preference
for relatively safe environment

Uncollateralized Call Market: Sharp decrease:
a)

b)

Foreign banks faced difficulties
raising funds
Abundance of liquidity due to
Bank of Japan’s provision of
ample funds
Call Market
40
Collateralized Transactions

100
90
Uncollateralized Transactions 80

35
30

70
60

25
20

50
40

15

30
20

10
5

10
2007

2008

2009

2010

2011
REPO MARKET
Continued to fall after Lehman Shock
 Increased Recently
 On the cash borrowing side, the expansion
was among securities companies
 On the cash lending side, increasing for all
sectors. Trust banks have the largest
share.

COMMERCIAL PAPER
After Lehman Shock, the sector saw a decline.
 Now, the sector is quiet stable
 The conditions are now improving because of:
a) BOJ’s special funds-supplying operations
b) Comprehensive monetary easing policy

REGULATION OF MONEY MARKET IN JAPAN
Two monetary authorities in Japan:
Ministry of Finance and Bank of Japan
 Unwilling to allow market forces to
equilibrate demand and supply
 Fear of excessively high interest rates
 Japan has a very restricted money market

Market for short-term government
securities is negligible
 BOJ is the main buyer and open market
operation are limited
 Transactions in Commercial Paper are
minimal
 However, the Call Market is welldeveloped.

INDIAN MONEY MARKET
The Money Market in India is quiet developed
and includes:
Treasury Bills,
Commercial Paper,
Certificate of Deposit,
Repos, etc.
 The Indian Money Market mainly consists of:
Unorganized Sector including moneylenders, Chit
lenders, etc

Organized Sector including RBI, Private
Banks, Public Sector Banks, Development
Banks and Non-Banking Financial
Companies.
 Regulation of Indian Money Market:
A.
RBI’s roles is confined to the organized
banking sector
B. Reforms made to deregulate the Interest
Rate by lifting the ceiling rates
C. Government has made attempts to
introduce new instruments
Money market in japan
COMPARISON BETWEEN THE TWO ECONOMIES
Instruments in the Money Market:
In Japan, only the Call Market is developed.
Other instruments are discouraged. In India, a
wide range of instruments are available.


Players in the Money Market:
In India, a wide range of participants are
present in the Money Market operations. This
is in complete contrast to Japanese economy.

Intervention of Monetary Authorities:
In Japan, BOJ plays an active role to stabilize
the interest rates by participating in the money
market operations. In India, efforts are being
made to reduce RBI’s intervention.


Government outlook towards the Money
Market:
In India, the government is taking active steps
to introduce new instruments into the market
and let market forces determine the interest
rate. On the other hand, in Japan, stabilizing
the interest rates remains the main concern of
the government.

Money market in japan

Contenu connexe

Tendances

9329365 A Ppt On Money Market
9329365 A Ppt On Money Market9329365 A Ppt On Money Market
9329365 A Ppt On Money MarketPujil Khanna
 
Investment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesInvestment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesDr. John V. Padua
 
International financial market & instruments module 3
International financial market & instruments   module 3International financial market & instruments   module 3
International financial market & instruments module 3Vishnu Vijay
 
Secondary market ppt
Secondary market pptSecondary market ppt
Secondary market pptDharmik
 
Chinese financial market
Chinese financial marketChinese financial market
Chinese financial marketGarimaGoel25
 
A project report on technical analysis at cement sector in share khan
A project report on technical analysis at cement sector in share khanA project report on technical analysis at cement sector in share khan
A project report on technical analysis at cement sector in share khanBabasab Patil
 
Commercial Papers and Certificate of Deposits
Commercial Papers and Certificate of DepositsCommercial Papers and Certificate of Deposits
Commercial Papers and Certificate of DepositsDaksh Bhatnagar
 
Indian money market and role of rbi
Indian money market and role of rbiIndian money market and role of rbi
Indian money market and role of rbiPrateek Chauhan
 
Non-Banking Financial Corporation (NBFC)
Non-Banking Financial Corporation (NBFC)Non-Banking Financial Corporation (NBFC)
Non-Banking Financial Corporation (NBFC)jatinvermaiasacademy
 
Indian financial services
Indian financial servicesIndian financial services
Indian financial servicesNits Kedia
 
IPO's and Investment Banking
IPO's and Investment BankingIPO's and Investment Banking
IPO's and Investment Bankingbradhapa
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisisnabila km
 
Role of financial markets
Role of financial markets Role of financial markets
Role of financial markets SherazAhmed118
 

Tendances (20)

Securitization presentation
Securitization presentationSecuritization presentation
Securitization presentation
 
9329365 A Ppt On Money Market
9329365 A Ppt On Money Market9329365 A Ppt On Money Market
9329365 A Ppt On Money Market
 
Investment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesInvestment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its Types
 
Secondary Markets
Secondary MarketsSecondary Markets
Secondary Markets
 
Money market
Money marketMoney market
Money market
 
International financial market & instruments module 3
International financial market & instruments   module 3International financial market & instruments   module 3
International financial market & instruments module 3
 
GFGC CHIKKABASUR ( Meaning and functions of central bank )
GFGC CHIKKABASUR ( Meaning and functions of central bank )GFGC CHIKKABASUR ( Meaning and functions of central bank )
GFGC CHIKKABASUR ( Meaning and functions of central bank )
 
Secondary market ppt
Secondary market pptSecondary market ppt
Secondary market ppt
 
Banking Industry
Banking IndustryBanking Industry
Banking Industry
 
Chinese financial market
Chinese financial marketChinese financial market
Chinese financial market
 
Money market
Money marketMoney market
Money market
 
Money market
Money marketMoney market
Money market
 
A project report on technical analysis at cement sector in share khan
A project report on technical analysis at cement sector in share khanA project report on technical analysis at cement sector in share khan
A project report on technical analysis at cement sector in share khan
 
Commercial Papers and Certificate of Deposits
Commercial Papers and Certificate of DepositsCommercial Papers and Certificate of Deposits
Commercial Papers and Certificate of Deposits
 
Indian money market and role of rbi
Indian money market and role of rbiIndian money market and role of rbi
Indian money market and role of rbi
 
Non-Banking Financial Corporation (NBFC)
Non-Banking Financial Corporation (NBFC)Non-Banking Financial Corporation (NBFC)
Non-Banking Financial Corporation (NBFC)
 
Indian financial services
Indian financial servicesIndian financial services
Indian financial services
 
IPO's and Investment Banking
IPO's and Investment BankingIPO's and Investment Banking
IPO's and Investment Banking
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisis
 
Role of financial markets
Role of financial markets Role of financial markets
Role of financial markets
 

En vedette

Smau Torino: 15 segreti per fare ecommerce all'estero
Smau Torino: 15 segreti per fare ecommerce all'esteroSmau Torino: 15 segreti per fare ecommerce all'estero
Smau Torino: 15 segreti per fare ecommerce all'esteroAproweb
 
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincente
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincenteSMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincente
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincenteAproweb
 
130322 ikea boklok italia presentazione
130322 ikea boklok italia presentazione130322 ikea boklok italia presentazione
130322 ikea boklok italia presentazioneSergio Taddia
 
10 Facts About Japanese Market
10 Facts About Japanese Market10 Facts About Japanese Market
10 Facts About Japanese MarketAya Shinkawa
 
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successo
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successoReputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successo
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successoAndrea Patron
 
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...Andrea Patron
 
Japanese Market Insights
Japanese Market InsightsJapanese Market Insights
Japanese Market InsightsXPotential
 
Marketing in Japan: Section 2 Part 2 of 3
Marketing in Japan: Section 2 Part 2 of 3Marketing in Japan: Section 2 Part 2 of 3
Marketing in Japan: Section 2 Part 2 of 3Jennifer Irene Guevara
 
Marketing in Japan: Section 1 Part 1 of 3
Marketing in Japan: Section 1 Part 1 of 3Marketing in Japan: Section 1 Part 1 of 3
Marketing in Japan: Section 1 Part 1 of 3Jennifer Irene Guevara
 
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...Meet Magento Italy
 
William Sbarzaglia - Le buyer personas nell'e-commerce
William Sbarzaglia - Le buyer personas nell'e-commerceWilliam Sbarzaglia - Le buyer personas nell'e-commerce
William Sbarzaglia - Le buyer personas nell'e-commerceMeet Magento Italy
 
Financial Markets In Singapore
Financial Markets In SingaporeFinancial Markets In Singapore
Financial Markets In SingaporeAjay Panandikar
 
10 Facts about Japan - GEOGRAPHY
10 Facts about Japan - GEOGRAPHY10 Facts about Japan - GEOGRAPHY
10 Facts about Japan - GEOGRAPHYLiviaMihai
 
Giulio Drei - Studio di fattibilità di un progetto eCommerce
Giulio Drei - Studio di fattibilità di un progetto eCommerceGiulio Drei - Studio di fattibilità di un progetto eCommerce
Giulio Drei - Studio di fattibilità di un progetto eCommerceMeet Magento Italy
 
Маркетинговые технологии прямого продвижения отелей в странах Азии
Маркетинговые технологии прямого продвижения отелей в странах АзииМаркетинговые технологии прямого продвижения отелей в странах Азии
Маркетинговые технологии прямого продвижения отелей в странах АзииRMAA Group - Russian Marketing and Advertising Agency
 

En vedette (16)

Smau Torino: 15 segreti per fare ecommerce all'estero
Smau Torino: 15 segreti per fare ecommerce all'esteroSmau Torino: 15 segreti per fare ecommerce all'estero
Smau Torino: 15 segreti per fare ecommerce all'estero
 
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincente
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincenteSMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincente
SMAU 2015 Milano - AICEL: 15 segreti di un ecommerce vincente
 
130322 ikea boklok italia presentazione
130322 ikea boklok italia presentazione130322 ikea boklok italia presentazione
130322 ikea boklok italia presentazione
 
10 Facts About Japanese Market
10 Facts About Japanese Market10 Facts About Japanese Market
10 Facts About Japanese Market
 
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successo
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successoReputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successo
Reputazione e Sicurezza. Le Regole fondamentali per un E-Commerce di successo
 
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...
SMAU Padova 2012 - Sicurezza Informatica e Reti. Come Aumentare la Produttivi...
 
Japanese Market Insights
Japanese Market InsightsJapanese Market Insights
Japanese Market Insights
 
Marketing in Japan: Section 2 Part 2 of 3
Marketing in Japan: Section 2 Part 2 of 3Marketing in Japan: Section 2 Part 2 of 3
Marketing in Japan: Section 2 Part 2 of 3
 
Marketing in Japan: Section 1 Part 1 of 3
Marketing in Japan: Section 1 Part 1 of 3Marketing in Japan: Section 1 Part 1 of 3
Marketing in Japan: Section 1 Part 1 of 3
 
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...
Roberto Fumarola - Il marketing nel post spedizione, tante opportunità da cog...
 
William Sbarzaglia - Le buyer personas nell'e-commerce
William Sbarzaglia - Le buyer personas nell'e-commerceWilliam Sbarzaglia - Le buyer personas nell'e-commerce
William Sbarzaglia - Le buyer personas nell'e-commerce
 
Financial Markets In Singapore
Financial Markets In SingaporeFinancial Markets In Singapore
Financial Markets In Singapore
 
10 Facts about Japan - GEOGRAPHY
10 Facts about Japan - GEOGRAPHY10 Facts about Japan - GEOGRAPHY
10 Facts about Japan - GEOGRAPHY
 
Japan-2015-revitalising-Japan
Japan-2015-revitalising-JapanJapan-2015-revitalising-Japan
Japan-2015-revitalising-Japan
 
Giulio Drei - Studio di fattibilità di un progetto eCommerce
Giulio Drei - Studio di fattibilità di un progetto eCommerceGiulio Drei - Studio di fattibilità di un progetto eCommerce
Giulio Drei - Studio di fattibilità di un progetto eCommerce
 
Маркетинговые технологии прямого продвижения отелей в странах Азии
Маркетинговые технологии прямого продвижения отелей в странах АзииМаркетинговые технологии прямого продвижения отелей в странах Азии
Маркетинговые технологии прямого продвижения отелей в странах Азии
 

Similaire à Money market in japan

Profile of mutual fund market in japan
Profile of mutual fund market in japanProfile of mutual fund market in japan
Profile of mutual fund market in japanakarshijain
 
Money markets in_india_wcm
Money markets in_india_wcmMoney markets in_india_wcm
Money markets in_india_wcmKierteka Yadav
 
Indian debt market analysis
Indian debt market analysisIndian debt market analysis
Indian debt market analysisMohit Garg
 
Capital market mature in india
Capital market mature in indiaCapital market mature in india
Capital market mature in indiatankrahul
 
Financial market analysi with reference to fdi and fii
Financial market analysi with reference to fdi and fiiFinancial market analysi with reference to fdi and fii
Financial market analysi with reference to fdi and fiiAjay Kumar
 
Indian financial system ppt @ bec doms mba bagalkot
Indian financial system ppt @ bec doms mba bagalkotIndian financial system ppt @ bec doms mba bagalkot
Indian financial system ppt @ bec doms mba bagalkotBabasab Patil
 
The Different Fate Of Thailand And Hong Kong During 1997...
The Different Fate Of Thailand And Hong Kong During 1997...The Different Fate Of Thailand And Hong Kong During 1997...
The Different Fate Of Thailand And Hong Kong During 1997...Jill Lyons
 
Balance of payment and exchange rate
Balance of payment and exchange rateBalance of payment and exchange rate
Balance of payment and exchange ratePiyush Gaur
 
reforms in banking sector of india
reforms in banking sector of indiareforms in banking sector of india
reforms in banking sector of indiaShreya Pathak
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012Natraj71
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012Natraj71
 
Money Market Ppt
Money Market PptMoney Market Ppt
Money Market Pptshael_kumar
 
Rbi and monetary policy final
Rbi and monetary policy finalRbi and monetary policy final
Rbi and monetary policy finalBhavya Kenia
 

Similaire à Money market in japan (20)

Profile of mutual fund market in japan
Profile of mutual fund market in japanProfile of mutual fund market in japan
Profile of mutual fund market in japan
 
Money markets in_india_wcm
Money markets in_india_wcmMoney markets in_india_wcm
Money markets in_india_wcm
 
Indian debt market analysis
Indian debt market analysisIndian debt market analysis
Indian debt market analysis
 
Jcr1
Jcr1Jcr1
Jcr1
 
Callmoney markets
Callmoney marketsCallmoney markets
Callmoney markets
 
Jaiib ifs module_a
Jaiib ifs module_aJaiib ifs module_a
Jaiib ifs module_a
 
Indian financial system
Indian financial systemIndian financial system
Indian financial system
 
Money Market
Money MarketMoney Market
Money Market
 
Capital market mature in india
Capital market mature in indiaCapital market mature in india
Capital market mature in india
 
Financial market analysi with reference to fdi and fii
Financial market analysi with reference to fdi and fiiFinancial market analysi with reference to fdi and fii
Financial market analysi with reference to fdi and fii
 
Indian financial system ppt @ bec doms mba bagalkot
Indian financial system ppt @ bec doms mba bagalkotIndian financial system ppt @ bec doms mba bagalkot
Indian financial system ppt @ bec doms mba bagalkot
 
The Different Fate Of Thailand And Hong Kong During 1997...
The Different Fate Of Thailand And Hong Kong During 1997...The Different Fate Of Thailand And Hong Kong During 1997...
The Different Fate Of Thailand And Hong Kong During 1997...
 
Balance of payment and exchange rate
Balance of payment and exchange rateBalance of payment and exchange rate
Balance of payment and exchange rate
 
Indian financial system[1]
Indian financial system[1]Indian financial system[1]
Indian financial system[1]
 
Debt market
Debt marketDebt market
Debt market
 
reforms in banking sector of india
reforms in banking sector of indiareforms in banking sector of india
reforms in banking sector of india
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012
 
Weekly market review jul 06 2012
Weekly market review   jul 06 2012Weekly market review   jul 06 2012
Weekly market review jul 06 2012
 
Money Market Ppt
Money Market PptMoney Market Ppt
Money Market Ppt
 
Rbi and monetary policy final
Rbi and monetary policy finalRbi and monetary policy final
Rbi and monetary policy final
 

Dernier

20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfMichael Silva
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 

Dernier (20)

20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdf
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 

Money market in japan

  • 1. MONEY MARKET IN JAPAN (VIS-A-VIS INDIA) Akarshi Jain Semester VI B.B.A, LL.B. (Hons.) -
  • 2. WHAT IS MONEY MARKET? Financial instruments with high liquidity and very short maturities are traded  Used by participants as a means for borrowing and lending in the short term, from several days to just under a year  Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, Treasury bills, commercial paper and repurchase agreements (repos) 
  • 3. INTRODUCTION TO THE JAPANESE MONEY MARKET Lehman Shock in 2008  Sharp Dip in the Money Market operations  Till 2011, stable and flat operations.  Recently grown mainly due to increase in Repo trnsactions  However, still below the level prior to 2008 
  • 4. Amounts Outstanding in the Money Market 250 200 150 100 50 2007 2008 2009 2010 2011
  • 5. CALL MARKET IN JAPAN Significant decrease after Lehman Shock  Collateralized Call Market: Increased:  a)  Regional Banks shifted their funds because of preference for relatively safe environment Uncollateralized Call Market: Sharp decrease: a) b) Foreign banks faced difficulties raising funds Abundance of liquidity due to Bank of Japan’s provision of ample funds
  • 6. Call Market 40 Collateralized Transactions 100 90 Uncollateralized Transactions 80 35 30 70 60 25 20 50 40 15 30 20 10 5 10 2007 2008 2009 2010 2011
  • 7. REPO MARKET Continued to fall after Lehman Shock  Increased Recently  On the cash borrowing side, the expansion was among securities companies  On the cash lending side, increasing for all sectors. Trust banks have the largest share. 
  • 8. COMMERCIAL PAPER After Lehman Shock, the sector saw a decline.  Now, the sector is quiet stable  The conditions are now improving because of: a) BOJ’s special funds-supplying operations b) Comprehensive monetary easing policy 
  • 9. REGULATION OF MONEY MARKET IN JAPAN Two monetary authorities in Japan: Ministry of Finance and Bank of Japan  Unwilling to allow market forces to equilibrate demand and supply  Fear of excessively high interest rates  Japan has a very restricted money market 
  • 10. Market for short-term government securities is negligible  BOJ is the main buyer and open market operation are limited  Transactions in Commercial Paper are minimal  However, the Call Market is welldeveloped. 
  • 11. INDIAN MONEY MARKET The Money Market in India is quiet developed and includes: Treasury Bills, Commercial Paper, Certificate of Deposit, Repos, etc.  The Indian Money Market mainly consists of: Unorganized Sector including moneylenders, Chit lenders, etc 
  • 12. Organized Sector including RBI, Private Banks, Public Sector Banks, Development Banks and Non-Banking Financial Companies.  Regulation of Indian Money Market: A. RBI’s roles is confined to the organized banking sector B. Reforms made to deregulate the Interest Rate by lifting the ceiling rates C. Government has made attempts to introduce new instruments
  • 14. COMPARISON BETWEEN THE TWO ECONOMIES Instruments in the Money Market: In Japan, only the Call Market is developed. Other instruments are discouraged. In India, a wide range of instruments are available.  Players in the Money Market: In India, a wide range of participants are present in the Money Market operations. This is in complete contrast to Japanese economy. 
  • 15. Intervention of Monetary Authorities: In Japan, BOJ plays an active role to stabilize the interest rates by participating in the money market operations. In India, efforts are being made to reduce RBI’s intervention.  Government outlook towards the Money Market: In India, the government is taking active steps to introduce new instruments into the market and let market forces determine the interest rate. On the other hand, in Japan, stabilizing the interest rates remains the main concern of the government. 