Intensified lending competition and search-for-yield under prolonged monetary easing

Yoshiaki Ogura

Journal of the Japanese and International Economies, 2020, vol. 56, issue C

Abstract: We present a structural estimation of regionally heterogeneous demand elasticity and the degree of competition in Japanese local loan markets under prolonged monetary easing. Our estimates show that lending competition intensifies in markets where banks hold more slack liquidity caused by monetary easing, and where loan demand is less elastic against lowering interest rates due to a rapidly aging population. We also find evidence for “search-for-yield”, i.e., banks in more competitive markets are driven to extend riskier loans.

JEL-codes: E51 G21 L11 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0889158320300137
Full text for ScienceDirect subscribers only

Related works:
Chapter: Intensified Lending Competition and Search-for-Yield under Prolonged Monetary Easing (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:56:y:2020:i:c:s0889158320300137

DOI: 10.1016/j.jjie.2020.101076

Access Statistics for this article

Journal of the Japanese and International Economies is currently edited by Takeo Hoshi

More articles in Journal of the Japanese and International Economies from Elsevier
Bibliographic data for series maintained by Catherine Liu ().