Session 8 Bank and Financial Crisis of Japan:

09 Case, Michael Enright and James Newton, "Japanese Banking:Crisis and Reform," HKU551, Asian Case Centre, via HBSP (https://drive.google.com/file/d/1Gm0_DSwzo8kh1kuCD4xdiWMvIztNERdM/view?usp=sharing)

Ref. Animation Movie "The Crisis of Credit Visualized, HD.

(https://www.youtube.com/watch?v=bx_LWm6_6tA)

10 Ref. Uwe Vollmer, Ralpf Bebenroth, "The financial Crisis of Japan: Causes and Policy Response by the Bank of Japan," The European Journal of Comparative Economics, 2012, 9(1) 51-77,

(https://www.researchgate.net/publication/265673474)

Ref. "Adverse Selection, The Premir"

(https://www.moneyandbanking.com/commentary/2017/8/13/adverse-selection-a-primer)

Assignment 8. Why bank lending is a risky business? Apply asymmetric information theory (i.e.market for "lemons") to baking business. Why did non-performing loan emerge at the issue in Japan? How should bank control its risk? What monetary policy is recommended to prevent financial crisis? Watch animation movies "The Crisis of Credit Visualized HD." Predict if there is any risk of financial risk associated with COVID-19.