Capital Markets & IT - lakyara July 2022
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.
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On May 11, Japan's National Diet passed an economic security law, one of the primary aims of which is to ensure the security and reliability of core infrastructure critical to Japan's national security. The law designates 14 industries, including financial services, as societal infrastructure businesses.
With many details remaining to be finalized as the law is phased into effect, NRI's Jun Tsutsumi spoke with Hideaki Umetsu, a partner at Mori Hamada & Matsumoto, about the law's implications for financial institutions.
The Ukraine conflict could dramatically increase near-term downside risks to the global economy by sparking energy inflation and, in turn, prompting the Fed to sharply tighten US monetary policy. Additionally, contraction in Russia’s energy supplies due to sanctions could keep energy prices elevated to the long-term detriment of the global economy.
The Kishida Government has aroused the interest and expectations of the financial services industry by announcing a plan, slated to be unveiled by year-end, to double households’ asset-based income. However, the plan is unlikely to succeed unless improvements to NISAs and iDeCo accounts are coupled with something else besides tax incentives. I propose gifting a portion of the BOJ’s ETF holdings to the public.