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Bank regulation and supervision in Japan and Germany: A comparison

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  • Ralf Bebenroth

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Diemo Dietrich

    (Halle Institute for Economic Research, Germany)

  • Uwe Vollmer

    (University of Leipzig, Germany)

Abstract

This paper describes and compares the regulation and supervision of banks in Japan and Germany. We have chosen these countries because they have both bank-dominated financial systems and belong to the same law tradition, yet, bank stability differs significantly. We ask to what extent these countries follow best practice regulations in banking and whether differences in banking stability and efficiency can be explained by regulatory and supervisory differences. We argue that bank regulation and supervision are less efficient in Japan than in Germany and show why Japan and Germany have made different regulatory and supervisory choices.

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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 211.

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Length: 32 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:kob:dpaper:211

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Keywords: Bank regulation and supervision; Banking stability and banking efficiency; Deposit insurance; Lender of last resort; Forbearance; Japan and Germany;

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References

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Cited by:
  1. Dietrich, Diemo & Vollmer, Uwe, 2012. "Are universal banks bad for financial stability? Germany during the world financial crisis," The Quarterly Review of Economics and Finance, Elsevier, vol. 52(2), pages 123-134.
  2. Adela Socol, 2011. "Internal Banking Control And Audit: A Comparative Approach In The Romanian Banking Sector," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 22.

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