among Asia and across the Pacific Ocean Keynote Address at the - PowerPoint PPT Presentation

The Era of Linkages among Asia and across the Pacific Ocean Keynote Address at the Conference on Asian banking and Finance “Challenges in Global Finance: The Role of Asia” held by the Federal Reserve Bank of San Francisco Masaaki Shirakawa Governor of the Bank of Japan June 11, 2012

(Chart 1) Early Days of Trans-Pacific Linkages Ａ Ｓｐａｎｉｓｈ g ａｌｌｅｏｎ .

(Chart 2) Boeing 747 “Jumbo Jet” in 1970s

(Chart 3) Automobile Production in Japan and U.S. y/y % chg. 30 Great East Japan Earthquake 20 10 0 -10 -20 -30 -40 Japan U.S. -50 -60 -70 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 2011 Source: Japan Automobile Manufacturers Association, Inc., FRB.

(Chart 4) Decline in Japan’s Exports of Automobile Parts After the Great East Japan Earthquake

(Chart 5) iPhone Production Costs Amount of money Major suppliers Components per unit Japanese-firms Non-Japanese firms (U.S. dollars) NAND Flash Memory Toshiba Samsung (Korea), Hynix (Korea) 19.2 DRAM Elpida Samsung (Korea) 9.1 Display Toshiba, Sharp LG (Korea), Chimei (Taiwan) 23.0 Application Processor Samsung (Korea) 15.0 Camera Module Sony 17.6 Bluetooth/WLAN and Qualcomm (U.S.), Avago (U.S.), Murata 30.0 other communication equipment Broadcom (U.S.), TriQuint (U.S.) Battery Sony, TDK Samsung (Korea), LG (Korea) 5.9 Mechanical/Electro-Mechanical Ibiden 33.0 Cost of other components 35.1 Total cost of all components 187.9 Manufacturing cost 8.0 Gross profit margin 453.1 Retail price 649.0 Note: The costs and prices are for the iPhone4S (16GB) in 2011. The retail price is SIM-free and without contracts. Sources: iSuppli; Nikkei Electronics.

(Chart 6) The World Economic Outlook Projections （ y/y percent chg ） 10.0 projection 8.0 6.0 4.0 2.0 0.0 U.S. 1 -2.0 Asia Euro area and U.K. -4.0 Latin America -6.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note1 ： Japan, China, India, NIEs and ASEAN5. Source: IMF

(Chart 7) Nominal GDP Share (2011) Other U.S. 22% 22% Latin America 7% Euro Area and U.K. NIEs ・ 22% ASEAN5 China 6% 11% Japan 8% India 2% Source: IMF

(Chart 8) Amount of Trade across Pan-Pacific （ Billion dollars ） 900 800 Asia → NAFTA and MERCOSUR 700 NAFTA and MERCOSUR → Asia 600 500 400 300 200 100 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 （ Note ） Asia includes Japan, China, Australia, South Korea, Taiwan, Singapore, Hong Kong, Thailand, Indonesia, Malaysia and Philippines. NAFTA includes United States, Canada, Mexico. MERCOSUR includes Argentina, Brazil, Paraguay, Uruguay and Venezuela. （ Source ） RIET-TID 2011

(Chart 9) Increase in the Share of Asia-Pacific Trade Share of bilateral and regional amount of trade accounting for the total amount of trade among the six poles (%) （１９９０） （２０００） （２００８） Rank Country/Region Share Rank Country/Region Share Rank Country/Region Share 1 NAFTA-EU 29.3 1 NAFTA-EU 27.0 1 NAFTA-EU 20.7 2 NAFTA-Japan 19.6 2 NAFTA-Japan 14.0 2 NAFTA-China 13.2 3 EU-Japan 12.6 3 NAFTA-ASEAN 8.5 3 EU-China 13.2 4 Japan-ASEAN 7.9 4 NAFTA-China 8.2 4 Japan-China 7.5 5 NAFTA-ASEAN 6.5 5 EU-Japan 7.8 5 NAFTA-Japan 6.8 6 EU-ASEAN 5.8 6 Japan-ASEAN 7.3 6 China-ASEAN 5.8 7 3.9 7 EU-ASEAN 6.1 7 EU-ASEAN 5.7 NAFTA-MERCOSUR 8 EU-MERCOSUR 3.5 8 Japan-China 5.5 8 NAFTA-ASEAN 5.6 9 NAFTA-China 3.3 9 EU-China 5.5 9 Japan-ASEAN 5.5 10 EU-China 3.0 10 4.0 10 EU-Japan 5.1 NAFTA-MERCOSUR 11 Japan-China 2.5 11 EU-MERCOSUR 2.8 11 4.2 NAFTA-MERCOSUR 12 China-ASEAN 0.9 12 China-ASEAN 2.3 12 EU-MERCOSUR 3.6 13 0.8 13 0.5 13 China-MERCOSUR 2.1 Japan-MERCOSUR Japan-MERCOSUR 14 0.3 14 0.3 14 0.5 China-MERCOSUR MERCOSUR-ASEAN MERCOSUR-ASEAN 15 0.1 15 0.2 15 0.5 China-MERCOSUR Japan-MERCOSUR MERCOSUR-ASEAN （ Source ） White Paper on International Economy and Trade (2011)

(Chart 10) Increase in the Share of Asia-Pacific Trade Trade among six poles (1990) (2008) Japan NAFTA Japan NAFTA 19.6 6.8 20.7 7.5 29.3 13.2 5.1 7.9 12.6 13.2 EU China China EU 5.6 6.5 5.7 5.8 5.5 5.8 MERCOSUR ASEAN MERCOSUR ASEAN Below 5% (Note) Share of bilateral and regional amount of trade accounting for the total amount of trade among the six poles （ Source ） White Paper on international Economy and Trade (2011)

(Chart 11) Asian Contribution to Global GDP Growth （ y/y percent chg ） 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Other Asia World -2.0 -3.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Note1 ： Japan, China, India, NIEs and ASEAN5. Source: IMF

(Chart 12) Loans in Asia Made by Japanese “Megabanks” Outstanding amount of loans in Asia (left) Outstanding amount of loans in Asia (left) （ trillion yen ） （％） Proportion of loans in Asia to total overseas loans (right) Proportion of loans in Asia to total overseas loans (right) 15 30 10 25 5 0 20 Mar. 2010 Sep. 2010 Mar. 2011 Sep. 2011 Mar. 2012 Note: Japanese megabanks comprise the Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Company, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust and Banking Company. Source: Financial reports of Japanese megabanks

(Chart 13) Share of European and Japanese Banks in Terms of Syndicated Loan Arrangement （％） 40 European Banks Japanese 3 megabanks 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Note 1: The share is based on the amount of arrangement in global markets. Note 2: The figure of 2012 is based on the available data figure on June 7, 2012. Source: Thomson Reuters

(Chart 14) Japan’s External Direct Investment （１） Rate of Return on Direct Investment 1 （２） Amount Outstanding of Japan’s External Direct Investment 2 （ tril.JPY ） （％） 20 2005 2010CY China 2.9 5.4 15 Asia (excl. China) 7.5 11.9 10 North America 18.3 21.4 ＥＵ 10.8 14.9 5 Other 6.1 14.1 0 Total 45.6 67.7 2005 06 07 08 09 10 11CY China North America ＥＵ Asia(excl. China) World （ Note 1 ） Figures of 2011 are annualized figure of the first half of 2011 (Note 2) At the end of the year （ Source ） Bank of Japan

(Chart 15)

(Chart 16) Volume of Foreign Exchange Transactions （１） Total （２） Currencies of Advanced Economies （３） Currencies of Emerging Economies (Bil. USD) （ Bil.USD ） 4,500 4,500 （ Bil.USD ） 400 Currencies of Emerging Economies Non-Available for CLS Non-Available for CLS 4,000 Currencies of Advanced Economies 4,000 350 Available for CLS Available for CLS (excl. Asian NIEs) 3,500 3,500 300 3,000 3,000 250 2,500 2,500 200 2,000 2,000 150 1,500 1,500 100 1,000 1,000 50 500 500 n.a. n.a. 0 0 0 2001 2004 2007 2010CY 2001 2004 2007 2010CY 2001 2004 2007 2010CY （ Note ） Aggregate Transaction Volume divided by 2 （ Source ） BIS “Triennial Central Bank Survey”

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