Looking at the situation for each demand component, real exports as a whole have recently been more or less flat, reflecting the following factors: (1) the effects of inventory adjustments in IT-related goods such as semiconductors in South Korea and Taiwan; (2) the deceleration in the U.S. economy; (3) the unwinding of accommodative monetary policies in emerging economies; and (4) the effects of the strong yen on exports of cars and other goods.
No system of regulation can be perfect, but it is essential that we find a way to supervise nonbank credit. It is no coincidence that many of the companies affected by the crisis belonged to one industry, the real estate industry, and that tells us something. The Securities Authority is responsible for transparency, but it does not regulate due diligence in new issues.