Paul Okura

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Paul Okura Global Head of Relationship Management
Group Global Financial Institutions Division The
Bank of Tokyo-Mitsubishi UFJ, Ltd. Focus Asia -
Executive Briefing
Presented at the Bankers Association for
Finance and Trades84th Annual Meeting
Advancing Global Trade and Investment April 9
11, 2006 The Scottsdale Princess, AZ
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• Moderators
• Zhang Jianhua
• Deputy General Manager, Bank of China
• Paul Okura
• Global Head of Relationship Management Group,
  The Bank of Tokyo-Mitsubishi UFJ, Ltd.
• Panelists
• Anthony Walton
• Vice Chairman The Americas, Standard Chartered
  Bank
• Farhad Subjally
• Senior Director , American Express Bank

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• Focus Asia - Executive Briefing - Issues
• Banking opportunities in Asia
• Where is the traditional documentary credit
  growing? Hypothesis Asia is where the growth
  is. (China and India.)
• What is the impact of Chinese economy to global
  trade?
• What are the opportunities and challenges in the
  financial sector in China?

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• Panel Discussions and Format
• Paul Okura, Banking opportunities in Asia
• Farhad Subjally, Growth of traditional trade
  finance
• Zhang Jianhua, Insiders view of China
• Anthony Walton, China Opportunities and
  Challenges in the Financial Sector
• Questions and Answers Asian perspective

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Asia as a single Factory
Japan Korea Taiwan
Australia
China Thailand Vietnam Indonesia
Energy raw materials
Parts components
Assemble
United States Europe
Final buyers
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• Banking opportunities in Asia
• In most Asian countries, 30-60 of GDP and 50-80
  of exports are attributable to SMEs
• Trade finance for SMEs
• Privatization of state owned enterprises in China
• Infrastructure related projects in India

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• India and China
• Challenges to continued growth
• Demography
• Energy Water
• Environment
• Possible solution
• Japan, Australia, and US can help by providing
  advanced technology and infrastructure

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• China
• (1) Opportunities in
• Energy Conservation
• Recycling
• Environmental Protection
• Tightening of Environmental Standards
• Transition to a Cyclical Economy

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• China
• (2) Use CPS (Color Printer Strategy)
• Instead of selling very expensive equipment or
  product, make sales by packaging the equipment or
  product with supply contracts.
• Supply equipment or product cheaply and recover
  profit through running costs allowing buyers to
  spread their expenditure evenly over time.

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• China
• (3) Potential concerns
• General tendency to see foreign companies as a
  threat. Accusation of foreign companies of
  building monopoly position in the Chinese market.
• Foreign companies account for 58.3 of export
  when trade friction is escalating. And the low
  level of added value generated in China.

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• Japan
• Financial Sector
• Ratio of NPL to total loan assets in major banks
  dropped from 20 in late 1990s to less than 3
• Consolidation from more than dozen banks 15 years
  ago to 3 major banking groups
• Regulatory apparatus strengthened by creation of
  Financial Services Agency

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• Japan
• (2) Corporate Sector
• After burst of bubble economy, restructuring took
  place to address
• Excess capacity
• Excess debt
• Excess employment
• Resulting in better financial position and
  improved profitability

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• Japan
• (3) Improved prospects for future
• Structural reforms through
• Policy making process
• Deregulation
• Privatization
• Public finance

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• Japan
• (4) Supportive external environment
• Healthy growth in US lead by household
  consumption and capital investment
• Demand for imports remain strong
• China is continuing a higher than
• 9 growth

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• Japan
• (5) Potential concerns in Japan
• Effect of rising oil price
• Adjustments to financial policies
• Fiscal deficit
• Demography low birth rate
• and rapidly aging population