Japanese Banking Problems: Implications for Southeast Asia
In: Banking, Financial Integration, and International Crises
AbstractJapanese banks are among the world's largest global financial intermediaries, with a significant presence in many regions, particularly the United States and Southeast Asia. In addition to being among the world's largest banks, they have some of the world's largest problems. Recent studies have found that Japanese banks have reduced lending as a consequence of these problems, that this shrinkage has been concentrated in their overseas operations, and that this shrinkage has influenced real activity in the United States. Southeast Asian economies, with both a large Japanese bank presence and capital markets less developed than those in the United States, are likely to be even more severely affected by any major retreat by Japanese banks. In addition, given recent problems in many Asian countries, the extent of any Japanese bank retreat might be magnified by host country as well as home country problems. ; This paper examines Japanese banking activities along three dimensions. First, it documents the expansion and the initial stage of retrenchment of lending by Japanese banks in Southeast Asia. Second, we examine the response of Japanese banks to their problems at home, as exemplified by their lending behavior in Southeast Asia. We evaluate this Japanese bank response relative to that in their home market and in the United States. Third, the Japanese response to the problems in Southeast Asia is then compared to that of their U.S. and European competitors. This paper was prepared for the Second Annual Conference of the Central Bank of Chile, "Banking, Financial Integration, and Macroeconomic Stability," Santiago, Chile, September 3-4, 1998.
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This chapter was published in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.) Banking, Financial Integration, and International Crises, , chapter 10, pages 303-332, 2002.
This item is provided by Central Bank of Chile in its series Central Banking, Analysis, and Economic Policies Book Series with number v03c10pp303-332.
Other versions of this item:
- Joe Peek & Eric S. Rosengren, 1998. "Japanese banking problems: implications for Southeast Asia," Working Papers 98-7, Federal Reserve Bank of Boston.
- Joe Peek Eric & S. Rosengren, 2001. "Japanese Banking Problems: Implications For Southeast Asia," Working Papers Central Bank of Chile 121, Central Bank of Chile.
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