kiyohiko g nishimura : financial regulations – asian perspectives remarks by mr kiyohiko g nishimura, deputy governor of the bank of japan, at the panel session “ financial development and regulatory coordination under new circumstances ”, at lujiazui forum annual meeting 2010, shanghai, 26 june 2010. * * * first of all, i would like to express my sincere gratitude to the hosts for inviting me to the lujiazui forum and especially to this panel on financial reforms. i am particularly delighted to be given the opportunity to discuss the pressing issue of financial reform, which will shape the future landscape of the global economy. in this short presentation, i would like to argue the following two points : firstly, the financial innovations of the past quarter century have blurred the dividing line between banks and non - banks. these developments have made it possible to shift risk back and forth between the banking system and capital markets. it has become difficult to locate exactly where ultimate risk lies, and the banking system has found itself so often vulnerable to the volatility of capital markets. the volcker rule and related financial reform proposals are designed to rectify these problems. secondly, however, we should recognize the significant regional differences in banks ’ business models along this bank / non - bank spectrum. financial reforms should thus follow a carefully - timed and well - balanced approach, taking explicit account of regional and functional heterogeneity. banks more like non - banks and non - banks more like banks : rationale for the volcker rule it may sound a bit farfetched, but the global financial crisis of the last few years might have been brought about partly by banks becoming more like non - banks and non - banks becoming more like banks. some banks are now non - bank - like, as exemplified in the current financial jargon used to describe these banks ’ business practices, such as “ originate to distribute model ” and “ prop trading ”, while some non - banks have become bank - like, as the phrase “ shadow banking system ” suggests. the financial innovations behind these changes are in essence welcome developments, helping to improve efficiency by shifting risk among economic agents. however, they have made it increasingly difficult to locate the whereabouts of ultimate risk. vital information regarding banks ’ risk exposures has been literally “ lost in transformation ” in the originate - todistribute model and various proprietary derivative trades. we have been unable to identify what risks a particular bank has been exposed to, and

july 4, 2018 bank of japan economic activity, prices, and monetary policy in japan speech at a meeting with business leaders in ishikawa yutaka harada member of the policy board ( english translation based on the japanese original ) introduction thank you for giving me this opportunity to exchange views with you and for having taken the time to be here despite your busy schedules. it is indeed a great honor to be here today. please allow me to express my gratitude for your great cooperation with the business operations of the bank of japan, particularly of the kanazawa branch. the bank introduced quantitative and qualitative monetary easing - - or qqe for short - - in april 2013 with the aim of achieving the inflation target of 2 percent, and since then, has strengthened the qqe framework. as a result of the bank's efforts, most economic indicators - - such as those of production, employment, investment, exports, and fiscal conditions - - have improved. today, i would like to provide my views on the achievements thus far of the bank's monetary policy measures as well as on some critical opinions regarding qqe, and then explain recent economic and financial developments as well as the path toward achieving the price stability target of 2 percent. i. the achievements of five years of the bank's monetary easing policy april 2018 marked five full years since the bank introduced bold monetary easing with its policy of qqe. for this reason, monetary policy over the past five years has been the subject of a large number of articles in newspapers and magazines assessing qqe from a variety of perspectives. 1 many of the assessments pointed out that the 2 percent price stability target had not been achieved and argued that the dangers associated with monetary easing had not been addressed. however, as i have highlighted repeatedly, monetary easing has led to a continued improvement in employment, to an increase in both real gdp growth and nominal gdp growth, and to a rise in the year - on - year inflation rate from negative into positive territory for example, such assessments were found in fujita tomoya, " daikibo kanwa gonen, fukuramu'fukusayo ', " the asahi shimbun, april 4, 2018 ; and the 3 - day series, sakai takayuki et al., " shiren no saishido, " the mainichi, february 17, 18, and 20, 2018 and the series focusing on monetary policy under the same title on april 10