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Behold the 'Behemoth'. The privatization of Japan Post Bank

Listed author(s):
  • Uwe Vollmer

    (Economics Department, University of Leipzig, Germany)

  • Diemo Dietrich

    (Halle Institute for Economic Research, Germany)

  • Ralf bebenroth

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

This paper analyzes the privatization process of the Japanese Post Bank (JPB), the largest bank in the world. We report some evidence in favour of the "political view" of SOB's and argue that, before privatization, postal savings banks served as vehicles for politicians to reallocate funds in exchange for private rents. We ask why politicians in Japan decided to privatize the postal savings system, predict how the privatization will proceed and study the expected results of the privatization process. We argue that there will be no level playing field in bank competition after the start of the privatization process and discuss possible out-comes of JPB privatization on financial stability in Japan.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp236.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 236.

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Length: 26 pages
Date of creation: Feb 2009
Handle: RePEc:kob:dpaper:236
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