Bank of Japan

Bank of Japan

Like most modern Japanese institutions, the Bank of Japan was founded after the Meiji Restoration. Prior to the Restoration, Japan's feudal fiefs all issued their own money, hansatsu, in an array of incompatible denominations, but the New Currency Act of Meiji 4 (1871) did away with these and established the yen as the new decimal currency, which had parity with the Mexican silver dollar.The former han (fiefs) becameprefectures and their mints became private chartered banks which, however, initially retained the right to print money. For a time both the central government and these so-called "national" banks issued money. A period of unanticipated consequences was ended when the Bank of Japan was founded in Meiji 15 (October 10, 1882), under the Bank of Japan Act 1882 (June 27, 1882), after a Belgian model. It has since been partly privately owned (its stock is traded over the counter, hence the stock number). A number of modifications based on other national banks were encompassed within the regulations under which the bank was founded.The institution was given a monopoly on controlling the money supply in 1884, but it would be another 20 years before the previously issued notes were retired.

Following the passage of the Convertible Bank Note Regulations (May 1884), the Bank of Japan issued its first banknotes in 1885 (Meiji 18). Despite some small glitches—for example, it turned out that the konnyaku powder mixed in the paper to prevent counterfeiting made the bills a delicacy for rats—the run was largely successful. In 1897, Japan joined the gold standard, and in 1899 the former "national" banknotes were former "national" banknotes were formally phased out.

Since its Meiji era beginnings, the Bank of Japan has operated continuously from main offices in Tokyo and Osaka.

Reorganization

The Bank of Japan was reorganized in 1942[1] (fully only after May 1, 1942), under the Bank of Japan Act of 1942 (日本銀行法 昭和17年法律第67号?), promulgated on February 24, 1942. There was a brief post-war period during the Occupation of Japan when the bank's functions were suspended, and military currency was issued. In 1949, the bank was again restructured.[1]

In the 1970s, the Bank's operating environment evolved along with the transition from a fixed foreign currency exchange rate and a rather closed economy to a large open economy with a variable exchange rate.

During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been conducted via its 'window guidance' (窓口指導) credit controls (which are the model for the Chinese central bank's primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth quotas on the commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the 1980s. It was implemented by the Bank of Japan's then 'Business Department' (営業局), which was headed during the 'bubble years' from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor in 2003).

A major 1997 revision of the Bank of Japan Act (jp) was designed to give it greater independence;[10] however, the Bank of Japan has been criticized for already possessing excessive independence and lacking in accountability before this law was promulgated.[11] A certain degree of dependence might be said to be enshrined in the new Law, article 4 of which states:In recognition of the fact that currency and monetary control is a component of overall economic policy, the Bank of Japan shall always maintain close contact with the government and exchange views sufficiently, so that its currency and monetary control and the basic stance of the government's economic policy shall be mutually harmonious.

However, since the introduction of the new law, the Bank of Japan has persistently rebuffed government requests to stimulate the economy.

Following the election of Prime Minister Shinzō Abe, the Bank of Japan has, with Abe's urging, taken proactive steps to curb deflation in Japan. On October 30, 2012, The Bank of Japan announced that it has undertaken further monetary-easing action for the second time in a month.[13] Under the leadership of new Governor Haruhiko Kuroda, the Bank of Japan released a statement on April 5, 2013 announcing that it would be purchasing securities and bonds at a rate of 60-70 trillion yen a year in an attempt to double Japan's money base in two years.

Mission

According to its charter, the missions of the Bank of Japan are:

1.Issuance and management of banknotes
2.Implementation of monetary policy
3.Providing settlement services and ensuring the stability of the financial system
4.Treasury and government securities-related operations
5.International activities
6.Compilation of data, economic analyses and research activities

Bank of America

Bank of America

Bank of America (abbreviated as BoA or BofA) is an American multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is the second largest bank holding company in the United States by assets.[5] As of 2013, Bank of America is the twenty-first largest company in the United States by total revenue. In 2010, Forbes listed Bank of America as the third biggest company in the world.

Bank of America provides its products and services through operating 5,100 banking centers, 16,300 ATMs, call centers, and online and mobile banking platforms. Its Consumer Real Estate Services segment offers consumer real estate products comprising fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, home equity lines of credit, and home equity loans.

The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth management corporation and a major player in the investment banking market.[8] According to the Scorpio Partnership Global Private Banking Benchmark 2014 it had assets under management (AuM) of USD 1,866.6 Bn an increase of 12.5% on 2013.

The company held 12.2% of all bank deposits in the United States in August 2009, and is one of the Big Four banks in the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors. Bank of America operates—but does not necessarily maintain retail branches—in all 50 states of the United States, the District of Columbia and more than 40 other countries. It has a retail banking footprint that serves approximately 50 million consumer and small business relationships at 5,151 banking centers and 16,259 automated teller machines (ATMs).

Bank of America has been the subject of several lawsuits and investigations regarding both mortgages and financial disclosures dating back to the financial crisis, including a record settlement of $16.65 billion on August 21, 2014.

Credit default swap

Credit default swap

A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer (usually the creditor of the reference loan) in the event of a loan default (by the debtor) or other credit event. This is to say that the seller of the CDS insures the buyer against some reference loan defaulting. The buyer of the CDS makes a series of payments (the CDS "fee" or "spread") to the seller and, in exchange, receives a payoff if the loan defaults. It was invented by Blythe Mastersfrom JP Morgan in 1994.

In the event of default the buyer of the CDS receives compensation (usually the face value of the loan), and the seller of the CDS takes possession of the defaulted loan.[1] However, anyone can purchase a CDS, even buyers who do not hold the loan instrument and who have no direct insurable interest in the loan (these are called "naked" CDSs). If there are more CDS contracts outstanding than bonds in existence, a protocol exists to hold a credit event auction; the payment received is usually substantially less than the face value of the loan.

Credit default swaps have existed since 1994, and increased in use after 2003. By the end of 2007, the outstanding CDS amount was $62.2 trillion, falling to $26.3 trillion by mid-year 2010 and reportedly $25.5 trillion in early 2012. CDSs are not traded on an exchange and there is no required reporting of transactions to a government agency. During the 2007-2010 financial crisis the lack of transparency in this large market became a concern to regulators as it could pose a systemic risk. In March 2010, the Depository Trust & Clearing Corporation (see Sources of Market Data) announced it would give regulators greater access to its credit default swaps database.

CDS data can be used by financial professionals, regulators, and the media to monitor how the market views credit risk of any entity on which a CDS is available, which can be compared to that provided by the Credit Rating Agencies. U.S. Courts may soon be following suit.

Industrial and Commercial Bank of China

Industrial and Commercial Bank of China

Industrial and Commercial Bank of China Ltd. (ICBC; simplified Chinese: 中国工商银行; traditional Chinese: 中國工商銀行;pinyin: Zhōngguó Gōngshāng Yínháng, more commonly just 工行 Gōngháng) is a Chinese multinational banking company, and the largest bank in the world by total assets and by market capitalization. It is one of China's 'Big Four' state-owned commercial banks (the other three being the Bank of China, Agricultural Bank of China, and China Construction Bank). It was founded as a limited company on January 1, 1984. As of March 2014, it had assets of US$3.62 trillion. Generally considered the largest bank in the world by assets; it is the first Chinese bank to achieve such a feat It ranks number 1 in The Banker's Top 1000 World Banks ranking, and first on the Forbes Global 2000 list of the world's biggest public companies.

ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world's largest IPO at that time valued at US$21.9 billion, surpassing the previous record US$18.4 billion IPO by Japan's NTT DoCoMo in 1998. In 2010, Ag Bank broke ICBC's IPO record when it raised $22.1 billion. China's largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges.

ICBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares). Due to heavy subscriptions, the greenshoe (i.e. over-allotment) placements were exercised and ICBC's take rose to US$21.9 billion (17% of ICBC's market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9 billion in Shanghai. Following the global offering, the free float of shares was 22.14% of the market capitalization.

At the end of its first day of trading, the bank's shares closed up almost 15% at HK$3.52 in Hong Kong, compared with the listing price of HK$3.07, which was set at the top of the indicative range due to the strong demand. According to Bloomberg, ICBC's market capitalisationat the end of trade based on its Hong Kong shares was US$156.3 billion, making its equity the world's fifth highest among banks, just behind JPMorgan Chase. Meanwhile, ICBC's Shanghai-listed A-shares recorded more modest gains and ended up 5.1% from the offering price of RMB 3.1

As of 2006, ICBC has 2.5 million corporate customers and 150 million individual customers. In 2005, net profit was up 12.4% to RMB 33.7 billion, and the total loan balance was RMB 3,289.5 billion. Total liabilities are RMB 6,196.2 billion, up 11.2%. Delinquent or non-performing loans (NPL) total RMB 154.4 billion, a significant reduction although the figures are widely regarded as being somewhat higher than officially stated. It has an NPL ratio of 4.69% and a capital adequacy ratio of 9.89%.

As of December 2, 2014, ICBC is ranked the largest bank in the world by assets and by tier 1 capital. In July 2007 it was ranked 30th in the world in terms of revenue.

In 2008 ICBC was the first Chinese Bank to adopt the Equator Principles, an international set of social and environmental standards for financial institutions launched in 2003.It has also adopted the Green Credit Policy launched in 2007 by the Chinese Ministry of Environmental Protection. International environmental groups have criticized ICBC for failing to adhere to its social environmental standards and of being hypocritical, because ICBC is involved in the financing of the controversial Gilgel Gibe III Dam in Ethiopia.

China Construction Bank

China Construction Bank

China Construction Bank Corporation (CCB; simplified Chinese: 中国建设银行; traditional Chinese: 中國建設銀行; pinyin:Zhōngguó Jiànshè Yínháng; often abbreviated as 建行; SSE: 601939, SEHK: 0939, OTC Pink: CICHY) is one of the "big four"banks in the People's Republic of China. In 2015 CCB was the 2nd largest bank in the world by market capitalization and 6th largest company in the world. The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in Frankfurt, Luxembourg, Hong Kong, Johannesburg, New York, Seoul, Singapore, Tokyo, Melbourne, Sydney and Auckland, and a wholly owned subsidiary in London. Its total assets reached CN¥ 8.7 trillion in 2009. Its headquarters is in Xicheng District,Beijing.

In 2005, Bank of America acquired a 9% stake in China Construction Bank for US$3 billion. It represented the company's largest foray into China's growing banking sector. Bank of America currently has offices in Hong Kong, Shanghai, and Guangzhou and sought to expand its Chinese business as a result of this deal.

On or about 5 June 2008, Bank of America purchased 6 billion H-shares for approximately HK$2.42 per share using call options under a formula in the initial acquisition agreement. Bank of America now holds about 25.1 billion H-shares, representing about 10.75% of CCB's issued shares. Bank of America may not sell the 6 billion shares that it purchased from Huijin using the call option before 29 August 2011 without prior consent of CCB. Bank of America still has the option to purchase additional shares.

In May 2009, speculation was raised that US$7.3 billion worth of CCB shares had been sold by BoA, to help bolster capital during stress testing.

On August 29, 2011, Bank of America announced it would sell approximately half its stake in CCB (13.1 billion shares worth about US$8.3 billion) to an undisclosed group of investors.

In September 2013, Bank of America sold its remaining stake in the China Construction Bank for as much as $1.5 billion.

In 2006, CCB acquired Bank of America (Asia), which started in 1912 in Hong Kong as Bank of Canton, and had a subsidiary in Macao.

CCB opened a London office on 2 June 2009.

In 2008, CCB submitted an application to the New York State Banking Department and the Federal Reserve Board to establish a branch in New York City. CCB officially opened its New York branch on 6 June 2009.

In 2013, CCB opened its European Headquarters in Luxembourg.

China Construction Bank investment division launched a CN¥5 billion (US$731.3 million) fund called China Healthcare Investment Fund to focus on investments in China's rapidly growing healthcare sector. The fund focuses on investments in healthcare related sectors including pharmacy, medical equipment manufacturing, medical institutions and services. It is the first domestic investment fund

specializing in investments in China's healthcare industry.

In late 2005, China Construction Bank made an initial public offering on the Hong Kong Stock Exchange (SEHK: 0939). Since its listing, the share price has risen about 50% (since February 2006). In late 2007, it made China's second-largest initial public offering of CN¥57.12 billion (US$7.6 billion) on the Shanghai Stock Exchange (SSE: 601939).

Bank of China

Bank of China

Bank of China Limited (simplified Chinese: 中国银行; traditional Chinese: 中國銀行; pinyin: Zhōngguó Yínháng; often abbreviated as 中銀 (in Hong Kong) or 中行 (in mainland)) is one of the 5 biggest state-owned commercial banks in China.

It was founded in 1912 by the Republican government to replace the Imperial Bank of China. It is the oldest bank in mainland China still in existence. From its establishment until 1942, it issued banknotes on behalf of the Government along with the "Big Four" banks of the period: the Farmers Bank of China, Bank of Communications and Central Bank of the Republic of China. Its headquarters are in Xicheng District, Beijing.

As of 31 December 2009, it was the second largest lender in China overall, and the 5th largest bank in the world by market capitalization value. As of 30 June 2015, it has the third highest proportion of interest payable of Chinese companies.

It has over RMB6,951.68 billion in assets, making it part of the Fortune Global 500 for the past 17 years.

It is the second largest lender in China overall, the largest lender to non-institutions, and the largest foreign exchange lender (the largest lender in China is the Industrial and Commercial Bank of China).

All overseas branches are only affiliated with Bank of China branches in China. That means that if you deposit money in a China branch, you cannot access your money in overseas branches.

Bank of China, New York internet banking is available for US dollar accounts and online access to stop payments, wire transfers and remittances. Great Wall debit MasterCard is available to account holders.

Bank of China, New York has two locations: 410 Madison (open Monday - Friday) and 42 East Broadway (open seven days). It also operates as a functional 24/7 clearinghouse for wire transfers and stop payments (allowing real time payments to China).

Although it is not a central bank, the Bank of China is licensed to issue banknotes in two of China's Special Administrative Regions. Until 1942, the Bank of China issued banknotes in mainland China on behalf of the Government of the Republic of China. Today, the Bank issues banknotes in Hong Kong and banknotes in Macau (under thePortuguese name "Banco da China, Sucursal de Macau"), along with other commercial banks in those regions

.As of 30 September 2015, largest shareholders of the Bank of China ordinary shares (both A shares and H shares) were:

China Central Huijin (an investment arm of the government of the People's Republic of China): 64.63% (A shares)

HKSCC Nominees Limited (nominee account): 27.78% (H shares)

China Securities Finance (state-owned legal person): 2.90% (A share]

As of 30 September 2015, largest shareholders of the Bank of China preference shares (both domestic and offshore) were:

The Bank of New York Mellon (custodian bank): 39.96% (offshore)

China Mobile Communications: 18.01% (domestic)

China National Tobacco Corporation: 5.00% (domestic)

Zhongwei Real Estate: 3.00% (domestic)

Agricultural Bank of China

Agricultural Bank of China

Agricultural Bank of China Limited (ABC, simplified Chinese: 中国农业银行; traditional Chinese: 中國農業銀行; pinyin: Zhōngguó Nóngyè Yínháng), also known as Ag Bank or 农行 Nóngháng, is one of the "Big Four" banks in the People's Republic of China. It was founded in 1951, and has its headquarters in Dongcheng District, Beijing. It has branches throughout mainland China, Hong Kong,London, Tokyo, New York, Frankfurt, Sydney, Seoul, and Singapore.

ABC has 320 million retail customers, 2.7 million corporate clients, and nearly 24,000 branches. It is China's third largest lender by assets. ABC went public in mid-2010, fetching the world's biggest ever initial public offering (IPO) at the time, since overtaken by another Chinese company, Alibaba. As of 2011, it ranks 8th among the Top 1000 World Banks,meanwhile In 2015, it ranks 3rd in Forbes’ 13th annual Global 2000 ranking of the biggest, most powerful and most valuable companies in the world.

ABC was the last of the "big four" banks in China to go public. In 2010, A shares and H shares of Agricultural Bank of China were listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange respectively. Each share was set to cost between 2.7

RMB and 3.3 RMB per share. H shares were set to cost between HK$2.88 and HK$3.48 per share.The final share price for the IPO launch was issued on July 7, 2010. On completion in August 2010 it became the world's biggest initial public offering (IPO) surpassing the one set by Industrial and Commercial Bank of China in 2006 of US$21.9 billion. This record has since been beaten by another Chinese company, Alibaba, in 2014.

ABC raised US$19.21 billion in an IPO in Hong Kong and Shanghai on July 6, 2010, before over allotment options were exercised. On August 13, 2010, ABC officially completed the world's largest initial public offering, raising a total of $22.1 billion after both Shanghai and Hong Kong's over-allotments were fully exercised. The IPO was once thought to be able to raise US$30 billion, but weaker market sentiment dampened the value. Despite a 15-month low for the Chinese benchmark index, the IPO was said to have gone smoothly.

CICC, Goldman Sachs, and Morgan Stanley led the Hong Kong offering, with JP Morgan, Macquarie, Deutsche Bank and ABC's own securities unit also involved. CICC, Citic Securities, Galaxy and Guotai Junan Securities handled the Shanghai portion. ABC sold about 40% of the Shanghai offering to 27 strategic investors including China Life Insurance and China State Construction. They were subject to lock-up periods of 12–18 months. Eleven cornerstone investors were selected for its Hong Kong share offering, including Qatar Investment Authority and Kuwait Investment Authority, taking a combined $5.45 billion worth of shares.

Since the establishment of the People's Republic of China in 1949, ABC has been formed and abolished several times. In 1951, two banks of the Republic of China, Farmers Bank of China and Cooperation Bank, merged to form the Agricultural Cooperation Bank, which ABC regards as its ancestor. However, the bank was merged into People's Bank of China, the central bank in 1952. The first bank bearing the name Agricultural Bank of China was founded in 1955, but it was merged into the central bank in 1957. In 1963 the Chinese government formed another agricultural bank which was also merged into the central bank two years later. Today's Agricultural Bank of China was founded in February 1979. It was restructured to form a holding company called Agricultural Bank of China Limited. It was listed on the Shanghai and Hong Kong stock exchanges in July 2010.

In April 2007, ABC was the victim of the largest bank robbery in Chinese history. This occurred when two vault managers at the Handan branch of the bank in Hebei province embezzled almost 51 million yuan 

In 2012, ABC started a project to migrate to the Avaloq Banking System.

During the 2013 Korean crisis, the Agricultural Bank of China halted business with a North Korean bank accused by the United States of financing Pyongyang's missile and nuclear programs.