NORINCHUKIN AND JAPANESE BANKS

Is the Japanese bank trade over?

(Sorry - no audio today)

I have been a fan of Japanese banks for awhile. In a pro-labour world, I see inflation and interest rates rising, and capital becoming increasingly scarce. This should fundamentally change the value propositions of banks with good deposit franchises. Rather than competing with central banks to make loans, corporates would be coming to banks for capital. Japanese banks have some of the largest deposit franchises in the world.