Prospects for Regional Financial Institutions to Enhance Their Roles Through Hometown Tax Donation—Current State of Lending by Regional Financial Institutions and of Intra-regional Industry-Government-Banking Collaboration

Takaaki Hoda and Richard B. Dasher
Additional contact information
Takaaki Hoda: Kobe University
Richard B. Dasher: Stanford University

Chapter Chapter 5 in Local Tax Benefits at a Distance, 2021, pp 53-65 from Springer

Abstract: Abstract Similar to the relationship between crowdfunding and regional financial institutions as presented in Chap. 3 , collaboration with regional financial institutions is also essential in regional revitalization triggered by the Hometown Tax Donation gift market. As local businesses scale up, as introduced in Chaps. 3 and 4 , they will need working capital and funds for capital investment. As such, expansion of local businesses driven by Hometown Tax Donation offers regional financial institutions an opportunity to increase lending. Financial institutions across Japan and most notably in rural areas face the challenge of raising loan-to-deposit ratio. Meanwhile, if loans are extended to businesses that simply exploit the special demand from Hometown Tax Donation without enhancing capabilities or skills, there will be risk of loan default once the system is terminated. Thus, rigorous screening is required. Yet, with backup in financing by financial institutions, the gift market should be able to drive regional economic revitalization.

Keywords: Industry-government-banking collaboration; Regional financial institutions; Financial intermediary function (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:spbchp:978-981-16-5138-0_5

Ordering information: This item can be ordered from
http://www.springer.com/9789811651380

DOI: 10.1007/978-981-16-5138-0_5

Access Statistics for this chapter

More chapters in SpringerBriefs in Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().