The measurement of financial intermediation in Japan
AbstractIn this paper, we examine the evolution of the Japanese financial structure, in order to challenge the expected incidences of the financial liberalization. We compute financial intermediation ratios for Japan (1979-2004) on a book value basis. According to our results, the intermediation ratio has remained quite stable, at around 85%. This stability is the result of two opposite trends: a decrease in credits and an increase in financial securities owned by financial (mostly, non-banking) institutions. These two trends are partly the consequence of the heavier weight of the Government in domestic external financing, which is traditionally less financed by credits than companies are. Besides, these two trends would not have appeared if we had used intermediation ratios in market value or other traditional indicators (Deposits/GDP, Loans to private sector/GDP, stock market capitalization/GDP, etc.). Our results provide evidence for a very close relationship between intermediate financings and market financings and tend to reject the hypothesis of the Japanese financial system's convergence toward a capital market-based system.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00265547.
Date of creation: Jan 2008
Date of revision:
Publication status: Published, Japan and the World Economy, 2008, 20, 1, 40-60
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Disintermediation; financial system; intermediaries; capital markets;
Other versions of this item:
- Capelle-Blancard, Gunther & Couppey-Soubeyran, Jezabel & Soulat, Laurent, 2008. "The measurement of financial intermediation in Japan," Japan and the World Economy, Elsevier, vol. 20(1), pages 40-60, January.
- Gunther Capelle-Blancard & Jézabel Couppey-Soubeyran & Laurent Soulat, 2005. "The measurement of financial intermediation in Japan," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00197104, HAL.
- Gunther Capelle-Blancard & Jézabel Couppey-Soubeyran & Laurent Soulat, 2005. "The measurement of financial intermediation in Japan," Cahiers de la Maison des Sciences Economiques bla05080, Université Panthéon-Sorbonne (Paris 1), revised Nov 2005.
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
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