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Bank regulation and supervision in bank-dominated financial systems: a comparison between Japan and Germany

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  • Ralf Bebenroth

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  • Diemo Dietrich

    ()

  • Uwe Vollmer

    ()

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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Suggested Citation

  • Ralf Bebenroth & Diemo Dietrich & Uwe Vollmer, 2009. "Bank regulation and supervision in bank-dominated financial systems: a comparison between Japan and Germany," European Journal of Law and Economics, Springer, vol. 27(2), pages 177-209, April.
  • Handle: RePEc:kap:ejlwec:v:27:y:2009:i:2:p:177-209
    DOI: 10.1007/s10657-008-9084-4
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    Cited by:

    1. Vollmer Uwe, 2015. "‚Stairway to Heaven‘ oder ‚Highway to Hell‘? – Eine Einschätzung der Europäischen Bankenunion / ‚Stairway to Heaven‘ or ‚Highway to Hell‘? – An Evaluation of the European Banking Union," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 147-174, January.
    2. repec:pal:jbkreg:v:19:y:2018:i:1:d:10.1057_s41261-017-0053-0 is not listed on IDEAS
    3. 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.
    4. repec:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-014-9460-1 is not listed on IDEAS
    5. repec:eee:spacre:v:17:y:2014:i:1:p:58-70 is not listed on IDEAS
    6. 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 1-22.
    7. Singleton,John, 2010. "Central Banking in the Twentieth Century," Cambridge Books, Cambridge University Press, number 9780521899093.
    8. Michael Diemer & Uwe Vollmer, 2015. "What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 251-277, December.

    More about this item

    Keywords

    Japan and Germany; Bank regulation and supervision; Deposit insurance; Lender of last resort; Forbearance; Varieties of capitalism; G21; G38; P52;

    JEL classification:

    • 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

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