Consolidation of Banks in Japan: Causes and Consequences / Kaoru Hosono, Koji Sakai, Kotaro Tsuru.

Format:

Book

Author/Creator:

Hosono, Kaoru, 1961-

Contributor:

Sakai, Koji.

Tsuru, Kōtarō, 1960-

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13399.

NBER working paper series no. w13399

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Consolidation of Banks in Japan

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

We investigate the motives and consequences of the consolidation of banks in Japan during the period of fiscal year 1990-2004 using a comprehensive dataset. Our analysis suggests that the government's too-big-to-fail policy played an important role in the mergers and acquisitions (M&As), though its attempt does not seem to have been successful. The efficiency-improving motive also seems to have driven the M&As conducted by major banks and regional banks in the post-crisis period, while the market-power motive seems to have driven the M&As conducted by regional banks and corporative (shinkin) banks. We obtain no evidence that supports managerial motives for empire building.

Notes:

September 2007.

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