Depositors’ Response to Deposit Insurance Reforms: Evidence from Japan, 1990–2005

We empirically investigate depositors’ response to various bank risk measures under different deposit insurance regimes. We find that depositor discipline is most significant during periods of full insurance coverage rather than during limited insurance coverage, and that deposit withdrawal induces bank managers to carry out aggressive restructuring. Our evidence suggests that the magnitude of depositor discipline is affected by both the extent of insurance coverage, and by the degree of public confidence in the stability of the financial system and the extent of regulatory forbearance. There is little evidence that higher interest rates at riskier banks promote depositor discipline.     

HOW DO POOR RURAL HOUSEHOLDS IN MYANMAR COPE WITH SHOCKS? COPING STRATEGIES IN A FISHING AND FARMING VILLAGE IN RAKHINE STATE

This paper examines how poor rural households in Myanmar cope with shocks which incur unexpected expenditure, namely, the sickness or death of a household member, using data collected in a fishing and farming village in Myanmar in 2008. The paper analyzes the sequence of coping strategies and the background factors behind the sequence. Self‐insurance, the dissaving of assets or cash, is given priority over intra‐party strategies, such as loans or gifts. The reason for this lies in the persistent severe credit constraints faced by households, both in terms of access and cost (high level of interest rates), and the absence of strong social norms for mutual insurance in the community. Both factors appear to force these households to self‐insure themselves from the outset.     

Decision-making process in Japan

As governments at last get down to business in the Tokyo Round of GATT negotiations, much is going to depend on the extent to which agreement is reached between the European Community, Japan and the United States. In this connection, it is important that people should understand the ways of the Japanese, particularly their decision-making process which somewhat seems to inhibit their ability to negotiate.     

Looking to the future: a new career education programme

A new programme of general family and consumer science for all high school students that can contribute to career education was proposed. The programme had three sessions: ‘single life’, ‘family life’ and ‘retired life’ from the typical three main life stages. Students were challenged to think about their future with regard to real life issues such as housing, location, budgeting time and finances, and family issues. Students were able to consider their future life concretely and specifically from various viewpoints after taking part in this programme. Students also found value in home economics education in developing life skills and knowledge, in considering their actual life and in considering their future life.