Consolidation of Banks in Japan: Causes and Consequences

Kaoru Hosono, Koji Sakai and Kotaro Tsuru

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: 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.

Pages: 65 pages
Date: 2007-10
New Economics Papers: this item is included in nep-ban, nep-com and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/07e059.pdf (application/pdf)

Related works:
Chapter: Consolidation of Banks in Japan: Causes and Consequences (2009)
Working Paper: Consolidation of Banks in Japan: Causes and Consequences (2007)
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:eti:dpaper:07059

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().