Advanced Search
MyIDEAS: Login

"Selection, Exits and Efficiency in the Japanese Banking Industry: An Historical Perspective" (in Japanese)


Author Info

  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)


In this paper we explore the long-term change of the industrial organization of the Japanese banking industry and its efficiency implication. In postwar Japan, the "convoy administration" by the Ministry of Finance rigidly controlled the entry into and exit from the banking industry, as well as the competition among the incumbent banks. Exits of banks were not only few, but also all of the exits were through mergers. On the other hand, in prewar Japan, a lot of banks exited through dissolution and bankruptcy, as well as thorough mergers. Using the data of the individual bank exits, we analyze the relationship between the exit of the bank and its performance. We find that, in prewar period, the lower the bank's performance was, the larger the probability of its exit through dissolution and bankruptcy was. Interestingly, this relationship cannot be observed concerning the exit thorough merger. The result concerning the exit thorough merger in the postwar period is the same. What differed from the prewar period was that there was no exit through the dissolution and bankruptcy in postwar period. We can conclude that while the selection mechanism of the inefficient banks worked in prewar Japan, it did not in the postwar period.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE J-Series with number CIRJE-J-63.

as in new window
Length: 32 pages
Date of creation: Aug 2001
Date of revision:
Handle: RePEc:tky:jseres:2001cj63

Contact details of provider:
Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033
Phone: +81-3-5841-5644
Fax: +81-3-5841-8294
Web page:
More information through EDIRC

Related research


This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tetsuji Okazaki & Michiru Sawada & Kazuki Yokoyama, 2005. "Measuring the Extent and Implications of Director Interlocking in the Pre-war Japanese Banking Industry ?Published in "Journal of Economic History", Dec2005, Vol. 65 Issue 4, p1082-1115, 34p," CARF F-Series CARF-F-039, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:tky:jseres:2001cj63. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.