Japanese Banking And Investment In The United States

Features

Description

This book examines in detail the timely area of Japanese banking and investment activities in the United States, and offers a clear picture of both the causes of the recent growth of foreign investment activity and the consequences of this trend for American companies, households, and government agencies.

Peter S. Rose argues that multiple factors have shaped the growing roles played by Japanese banks in the U.S. financial system and by Japanese investors in the U.S. economy, but remains optimistic that this is not necessarily a cause for alarm. Rose provides a detailed look at nearly every aspect of Japan's involvement in the U.S. financial sector, as well as offering a useful overview of the banking and financial system of Japan.

Among the causes of Japanese expansion that Rose discusses are the rapid appreciation of the Japanese yen in international markets, Japan's large trade surpluses with the U.S., the high personal savings rate of the Japanese, periodically depressed U.S. stock prices, and the low barriers to entry into most U.S. markets.

Also fully detailed are the consequences of possible reductions in Japanese financial activity, which could be felt in the U.S. through higher domestic interest rates, a reduction in the creation of new jobs, rising unemployment, reduced availability of long-term capital, and a slackening in the growth of U.

S. output. This unique work will be an important reference tool for professionals in the banking, finance, and securities industries, for public policy makers and bank regulatory agencies, and for students and researchers of international banking and finance. Review: ?Rose has served with the Federal Reserve System and has authored several publications on finance.

He evaluates the scope of Japanese banking and investments in the US; the links between Japanese and foreign banks; the organizational vehicles used by Japanese banks to enter American markets; the causes of Japanese financial expansion; their targeting of commercial customers and their advantages in corporate financing; and their expansion into US securities and real estate markets, including alliances between Japanese and US financial firms for mutual interpenetration.

In his assessment, Rose covers the impact of Japanese financial presence on large US banks and on government deficit financing, the increasingly coordinated international standards of regulation, and the prospects of a decline in the volume of Japanese capital flows. The thought-challenging implications reaffirm US commitment to free trade and free capital movement.

The book is factual, informative (in addition to its 44 tables), and is well organized. Recommended for graduate and all financial research collections.?-Choice