What we feared most immediately after the disaster was a situation in which a deterioration in business sentiment or an increase in investors' risk aversion in financial markets would lead to an increase in various risk premiums, thereby adversely affecting economic activity.
Although the disaster had no impact on Japanese financial institutions' foreign currency funding, in its U.S. dollar-funds supplying operation that has been in place since before the earthquake, the Bank of Japan started to offer one-week funds, as a safety valve, in addition to the existing three-month funds.
What we feared most immediately after the disaster was a situation in which a deterioration in business sentiment or an increase in investors' aversion to risk would lead to an increase in various risk premiums, thereby adversely affecting economic activity.
Soon after the disaster, His Majesty the Emperor broadcast a video message to the people, and together with Her Majesty the Empress visited the afflicted areas and evacuation centres. They also received briefings from many people concerned to get a better understanding of the situation.
Three years have passed since the earthquake disaster, but recovery efforts are still in progress. In the affected areas where continued support is needed, one issue is to transmit information on the status of recovery activities on a continuing basis.
The foremost challenge for Japan today is responding to the acute emergency after the disaster. Financial infrastructure is vital not only in this emergency phase immediately after the disaster, but also in the process of economic rebuilding that will gradually become more and more center-stage.
After the disaster, the BOOKOFF Group donated ¥10 million to the Japanese Red Cross Society and also launched the Sell to Support and Support for Mobile Libraries in Tohoku activities to provide support through books, CDs, DVDs, and video game software.
Donated"PATROL" Vehicle to NGO Immediately after the earthquake, Nissan donated a large"PATROL" SUV to the NGO that was designated to carry out emergency assistance activities. Ultimately, Nissan provided 47 vehicles to nine different organizations.
The film gathers raw testimonies from disaster victims and images from the affected areas, visiting Sendai, Higashimatsushima, and Ishinomaki two weeks after the earthquake, and focusing on Okawa Elementary School in Ishinomaki City where 74 out of 108 students lost their lives to the tsunami.
Prospects for Japan's Economy and Medium- to Long-Term Challenges From a somewhat longer-term perspective, the economy will return to the sustainable growth path with price stability Japan's economy declined significantly following the earthquake disaster in March last year and thereafter recovered at a pace faster than envisaged thanks to efforts by firms and people.
After the earthquake, the trade balance turned negative due to the expansion of imports of crude oil and LNG against the backdrop of the suspension of operation of nuclear power plants and an associated increase in electricity generated from thermal power. The yen's appreciation has also worked to offset the negative impact of such drain of income to overseas.
Furthermore, after the earthquake, in order to maintain the financial intermediation functioning and secure smooth funds settlement, the Bank, in cooperation with private financial institutions, provided cash in the disaster areas and ensured the stable operation of Japan's core payment and settlement systems, including the Bank of Japan Financial Network System BOJ-NET.
Immediately after an earthquake, MdM dispatched medical teams to the disaster area comprised of psychiatrists, nurses, clinical psychotherapist, logistic experts and other specialist staff and has been relief efforts for those affected by the disaster including psychological support at evacuation shelters, temporary house, homes and hospitals, as well as basic medical care.
Both private financial institutions and the Bank of Japan have been doing their utmost to preserve stability on the financial front since immediately after the earthquake. In terms of payment and settlement systems, although some clearing houses in the quake-stricken areas had to suspend their operations, major payment and settlement systems including the BOJ-NET-- the settlement system for funds and government bonds-- continued to operate smoothly.
Right after the March 11 earthquake, the Bank provided ample funds on an unprecedented scale, exceeding the amount provided immediately after the Lehman shock.
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