Premium problems
Article Abstract:
There is concern about the Japanese banking system which is affecting foreign interest in Japanese shares. Japanese buyers are not enthusiastic about shares. Share prices rose between Jun and Oct 1995, boosted by foreign interest, but this has since waned. The Japan premium has widened and this is linked to foreigners' caution. The premium is the extra cost of borrowing by Japanese banks due to fears relating to the banking system. This premium should disappear over time, according to the Bank of England Governor, Eddie George.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Japan: swamped by the banks
Article Abstract:
There is concern that the Japanese banking system could affect the liquidity of the stock market in its desire to meet capital adequacy ratios. Banks have seen the value of their holdings reduced by a drop in share prices from 1990 to 1994, and have also had to sell some shares to deal with their bad debt problem. Banks are likely to carry out rights issues and it is unclear whether investors will be keen on buying these shares. The Industrial Bank of Japan has announced a share issue.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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