Japan's financial slump : collapse of the monitoring system under institutional and transition failures / Yasushi Suzuki.

Format:

Book

Author/Creator:

Suzuki, Yasushi, 1963-

Series:

Palgrave Macmillan studies in banking and financial institutions

Language:

English

Subjects (All):

Bank failures--Japan.

Bank failures.

Banks and banking--Japan.

Banks and banking.

Japan.

Financial institutions--Japan.

Financial institutions.

Financial crises--Japan.

Financial crises.

Nihon Chōki Shinʼyō Ginkō.

Physical Description:

xv, 219 pages : illustrations ; 23 cm.

Place of Publication:

Houndmills, Basingstoke, Hampshire ; New York : Palgrave Macmillan, 2011.

Summary:

Suzuki (Ritsumeikan Asia Pacific U., Japan), who was a bank manager at Long-Term Credit Bank of Japan (LTCB) when it failed, writes from an insider's perspective in this cogent analysis of the causes of Japan's extended financial slump. Specific practices and policies historically used in the screening and monitoring of banking in Japan are described, with a focus on how they were entirely based in Japanese culture. The way these practices changed and the problems of timing and effectiveness of the changes form the central thesis. The concluding discussion demonstrates how shifting the monitoring system affected bank operations and led to the collapse of LTCB. Annotation ©2011 Book News, Inc., Portland, OR (booknews.com)

Contents:

1 Introduction and Summary 1

1.1 Fundamental questions about Japan's financial monitoring system 1

1.2 Economic realities 3

1.3 Analytical framework 7

1.4 Summary of conclusions and contributions 8

1.5 Chapter outline 14

2 Theoretical Framework and Basic Analysis of Monitoring Activities 16

2.1 Introduction 16

2.2 Theories related to monitoring activities: Screening and monitoring activities by lenders and investors 18

2.3 Theories related to monitoring activities: Supervising and monitoring activities of regulatory authorities 31

2.4 Theories of institutional changes 43

2.5 Conclusions 47

3 Characteristics of the 'Traditional' Japanese and Anglo-American Financial Systems 49

3.1 Introduction 49

3.2 The Anglo-American financial system 50

3.3 Japanese 'main banks' as intermediaries and monitors 56

3.4 Intangible and informal institutional features of the 'convoy' monitoring system 60

4 Economic Environmental Changes and Institutional Changes 77

4.1 Introduction 77

4.2 Changes in economic environment affecting the Japanese traditional monitoring system 79

4.3 Limitation of the Anglo-American methods of screening and monitoring 96

4.4 Changes in the financial structures through the 1990s: Comparative financial structures of Japan and the US 106

4.5 Concluding comments 115

5 The LTCB Collapse: A Case Study 118

5.1 Introduction 118

5.2 Changes in the LTCB's profitability 119

5.3 Responses to the collapse of the financial bubble 128

5.4 Changes in the LTCB's financial position 134

5.5 Conclusion 137

6 Intensified Uncertainty: The Political and Economic Reality of the 1997-98 Financial Crisis and Prolonged Financial Stagnation in Japan 142

6.1 Introduction 142

6.2 A survey of the process from the collapse of the financial bubble to the LTCB's bankruptcy 143

6.3 Characteristics of Japan's prolonged financial slump 155

6.4 Credit crunch seen as a result of herd behaviour in lending 161

6.5 ShinGinko Tokyo: Another case study 165

6.6 Concluding comments 170

7 Transition Failure 174

7.1 Introduction 174

7.2 Costs for abandoning the traditional mode - the transition cost 177

7.3 Intensified 'audience' effects 185

7.4 Actions by the Japanese banks after the crisis 190

7.5 Conclusions 193

8 Conclusions 195

8.1 Summarized conclusions 195

8.2 Lessons from Japan's financial stagnation 199.

Notes:

Includes bibliographical references and index.

ISBN:

9780230290341

0230290345

OCLC:

682891206