The Impact of the Bank of Japanâ€™s Low-Interest Rate Policy on the Japanese Banking Sector
Juliane Gerstenberger () and
Gunther Schnabl ()
Additional contact information
Juliane Gerstenberger: Seelenberger StraÃŸe 4, 60489 Frankfurt, Germany
Credit and Capital Markets, 2021, vol. 54, issue 4, 533-562
This paper presents an analysis of the impact of the Bank of Japanâ€™s low-interest rate policy on the banking sector in the wake of the 1998 Japanese financial crisis. We show how the low-cost liquidity provision as a means to stabilize banks has created a growing gap between deposits and loans in the financial system and how the low-interest rate policy has compressed interest margins as the traditional source of banksâ€™ income. Efficiency scores are compiled to estimate the effect of the Bank of Japanâ€™s monetary policy on banksâ€™ technical efficiency. The estimation results provide evidence that the Japanese monetary policy has contributed to declining efficiency in the banking sector, despite â€“ or possibly because of â€“ the increasing concentration within this sector.
JEL-codes: E52 E58 E63 F42 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kuk:journl:v:54:y:2021:i:4:p:533-562
Access Statistics for this article
More articles in Credit and Capital Markets from Credit and Capital Markets
Bibliographic data for series maintained by Credit and Capital Markets ().