Flash Note 11/05/2016 Alex Fusté @AlexfusteAlex [email protected] Japan - Passerine birds, divorces and bad omens I sometimes believe that I know as much on financial markets as on Passerine birds and its migratory patterns. Why? Because of the simple reason that I'm increasingly unable to provide a rational explanation to certain decisions. For example, In Japan, the Financial Services Agency (FSA) is examining right now ways to allow banks to implement its own and independent stress test. Crystal clear, instead of imposing uniform standards comparable to overseas peers, the FSA is examining how to allow Japanese banks to develop its own stress test!!!! Well, I can not find a compelling answer in the line that this decision will provide a more solid and sustainable path for the banking sector and the economy. Instead, what I suspect is that the authorities are giving up some ground for the harmful effects of its NIRP on bank's results. From an investor perspective (and like you, I am one), the news coming from Japan's regulators are not reassuring. Managing a banking crisis by giving more freedom to banks is like letting your wife to be your lawyer in your own divorce. If materialized, this would come as a Bad omen for Japan. Kind regards, Alex Fusté Chief Economist Andbank Este documento ha sido realizado por Andbank, principalmente para su distribución interna e inversores profesionales. Este documento no debe ser considerado como consejo de inversión ni una recomendación de compra de ningún activo, producto o estrategia. Las referencias a cualquier emisor o título, no pretenden ser ninguna recomendación de compra o venta de dichos títulos.