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An Analysis of the Japanese Credit Network

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Author Info
G. De Masi
Y. Fujiwara
M. Gallegati
B. Greenwald
J. E. Stiglitz

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Abstract

An analysis of the Japanese credit market in 2004 between banks and quoted firms is done in this paper using the tools of the networks theory. It can be pointed out that: (i) a backbone of the credit channel emerges, where some links play a crucial role; (ii) big banks privilege long-term contracts; the "minimal spanning trees" (iii) disclose a highly hierarchical backbone, where the central positions are occupied by the largest banks, and emphasize (iv) a strong geographical characterization, while (v) the clusters of firms do not have specific common properties. Moreover, (vi) while larger firms have multiple lending in large, (vii) the demand for credit (long vs. short term debt and multi-credit lines) of firms with similar sizes is very heterogeneous.

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File URL: http://arxiv.org/abs/0901.2384
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Publisher Info
Paper provided by arXiv.org in its series Quantitative Finance Papers with number 0901.2384.

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Date of creation: Jan 2009
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Handle: RePEc:arx:papers:0901.2384

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References listed on IDEAS
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  1. Spiegel, M.M. & Yamori, N., 2000. "Financial Turbulence and the Japanese Main Bank Relationship," Papers pb00-04, Economisch Institut voor het Midden en Kleinbedrijf-.
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  2. Farinha, Luisa A. & Santos, Joao A. C., 2002. "Switching from Single to Multiple Bank Lending Relationships: Determinants and Implications," Journal of Financial Intermediation, Elsevier, vol. 11(2), pages 124-151, April. [Downloadable!] (restricted)
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  3. Sterken, Elmer & Tokutsu, Ichiro, 2002. "What are the determinants of the number of bank relations of Japanese firms?," CCSO Working Papers 200203, University of Groningen, CCSO Centre for Economic Research. [Downloadable!]
  4. Ogawa, Kazuo & Sterken, Elmer & Tokutsu, Ichiro, 2007. "Why do Japanese firms prefer multiple bank relationship? Some evidence from firm-level data," Economic Systems, Elsevier, vol. 31(1), pages 49-70, March. [Downloadable!] (restricted)
  5. Masaji Kano & Hirofumi Uchida & Gregory F. Udell & Wako Watanabe, 2006. "Information Verifiability, Bank Organization, Bank Competition and Bank-Borrower Relationships," Discussion papers 06003, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
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This page was last updated on 2009-11-26.


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