ABSTRACT
The recent global financial crisis has changed the global flow of money. Before the crisis, the economies of the US and European countries were growing. The US and Europe were investing heavily in emerging markets, particularly in Asian countries. The financial crisis forced the Western financial institutions to reconsider their highly leveraged business model and get back to basics, namely by shrinking their asset portfolios in emerging markets, including Asia. The problems posed by the Eurozone public debt have added to the EU's problems. This turn of events provides Japanese banks great opportunities for expanding their market share in the banking business in Asian countries. Moreover, there is a massive and urgent need for financing building infrastructure in Asia, which local banks cannot afford. In addition, the economic growth in Asia has given rise to a huge emerging middle class that is need of retail banking services. Japanese banks can offer sophisticated and secure retail banking services in comparison with local banks.
