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Both countries have had severe financial crises, which left them with sick banking systems and massive overcapacity after years of artificially cheap capital.
The sick banking system of Europe Ports in a storm Shifting sands A 60-year-old dream Opening the floodgates ReprintsIn short, there seems to have been a huge shift in attitudes towards risky assets.
The sick banking system of Europe Ports in a storm Shifting sands A 60-year-old dream Opening the floodgates ReprintsThe second weak link is the amount of leverage that many investors took on.
The sick banking system of Europe Ports in a storm Shifting sands A 60-year-old dream Opening the floodgates ReprintsAs part of those reforms, India slashed tariffs on imports from an average of 90% in 1991 to 30% in 1997.
The sick banking system of Europe Ports in a storm Shifting sands A 60-year-old dream Opening the floodgates ReprintsRumoured to be next on the list is a possible 28 billion dirham ($7.7 billion) merger of Abu Dhabi's second- and third-largest banks.
The sick banking system of Europe Ports in a storm Shifting sands A 60-year-old dream Opening the floodgates Reprints Related items Deflation in America: The greater of two evilsMay 7th 2009Ben Bernanke, the Federal Reserve chairman, on May 5th characterised the news on consumers as "somewhat better".
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The new rules would also establish procedures for closing a sick bank without infecting others.
Even so, until this week the government's tireless calls for mergers among Japan's sick banks have gone unheeded.
This may lead to a temporary nationalization of some sick banks, as Britain did with Royal Bank of Scotland.
One sick bank going broke can destroy confidence in the entire banking system and start runs that could bring down healthy banks too.
If the tests of the 91 banks are credible, they would separate the minority of sick banks from the healthy majority.
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