IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/14939.html
   My bibliography  Save this paper

Taipei,China's banking problems: lessons from the Japanese experience

Author

Listed:
  • Montgomery, Heather

Abstract

Over the past decade, the health of the banking sector in Taipei,China has been in decline. Falling returns on assets and equity, steadily rising non-performing loans and bank runs at smaller financial institutions have highlighted problems across the banking sector as a whole. This study analyzes both the causes of, and policy responses to, the banking sector problems in Taipei,China, drawing comparisons from the experience of Japan. The author shows that there are many valuable lessons to be learned from the Japanese experience. In particular, policy makers in Taipei,China are urged to heed the early warning signs of overall banking sector problems and to avoid the policy of forbearance. Importantly, a hoped-for macroeconomic recovery cannot be relied upon to help banks “grow out” of their problems.

Suggested Citation

  • Montgomery, Heather, 2002. "Taipei,China's banking problems: lessons from the Japanese experience," MPRA Paper 14939, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14939
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/14939/1/MPRA_paper_14939.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Plummer, Michael G., 1998. "Asian Development Bank, asian Development outlook 1997 and 1998 : New York: Asian Development Bank, 1997," Journal of Asian Economics, Elsevier, vol. 9(2), pages 369-371.
    2. Mr. David Woo & Mr. Akihiro Kanaya, 2000. "The Japanese Banking Crisis of the 1990's: Sources and Lessons," IMF Working Papers 2000/007, International Monetary Fund.
    3. Takeo Hoshi & Anil Kashyap, 2000. "The Japanese Banking Crisis: Where Did It Come From and How Will It End?," NBER Chapters, in: NBER Macroeconomics Annual 1999, Volume 14, pages 129-212, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Montgomery, Heather & Takahashi, Yuki, 2011. "Bank recapitalization in the U.S. - lessons from Japan," MPRA Paper 33147, University Library of Munich, Germany.
    2. Barbara Stallings, 2004. "Financial Liberalization, Crisis, and Rescue: Lessons for China from Latin America and East Asia?," IDB Publications (Working Papers) 48078, Inter-American Development Bank.
    3. Montgomery, Heather, 2003. "Taiwan's looming banking crisis," Journal of Asian Economics, Elsevier, vol. 14(4), pages 645-667, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raphael Fischer & Gunther Schnabl, 2018. "Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU," International Economics and Economic Policy, Springer, vol. 15(2), pages 405-428, April.
    2. Theodore M. Barnhill & Panagiotis Papapanagiotou & Marcos Rietti Souto, 2004. "Preemptive Strategies for the Assessment and Management of Financial System Risk Levels: An Application to Japan with Implications for Emerging Economies," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-42.
    3. Iftekhar Hasan & Larry D. Wall, 2004. "Determinants of the Loan Loss Allowance: Some Cross‐Country Comparisons," The Financial Review, Eastern Finance Association, vol. 39(1), pages 129-152, February.
    4. Dreyer, Mallory, 2021. "The Resolution and Collection Corporation of Japan," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 3(2), pages 410-449, April.
    5. Claudio Morana, 2006. "The End of the Japanese Stagnation: an Assessment of the Policy Solutions," ICER Working Papers 27-2006, ICER - International Centre for Economic Research.
    6. Rixtel, Adrian van & Wiwattanakantang, Yupana & ウィワッタナカンタン, ユパナ & Souma, Toshiyuki & 相馬, 利行 & Suzuki, Kazunori & スズキ, カズノリ, 2002. "Banking in Japan: Will "Too Big To Fail" Prevail?," CEI Working Paper Series 2002-16, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    7. Kiichi Tokuoka & Mr. Murtaza H Syed & Mr. Kenneth H Kang, 2009. "“Lost Decade” in Translation - What Japan’s Crisis could Portend about Recovery from the Great Recession," IMF Working Papers 2009/282, International Monetary Fund.
    8. Oliver Arentz & Johann Eekhoff & Christine Arentz, 2010. "Zur Finanzmarktkrise: Die Rolle der Immobilienbewertung," IWP Discussion Paper Series 01/2010, Institute for Economic Policy, Cologne, Germany.
    9. Hossain, Monzur, 2005. "Financial Deregulations, Conflict of Interest and Banking Crisis in Japan: A Decision-theoretic-GARCH Approach to Analyze the Management Behavior," MPRA Paper 24858, University Library of Munich, Germany.
    10. Hossain, Monzur, 2005. "Financial Deregulation and Crisis:An ‘Agency-conflict’ Case of Japan," MPRA Paper 24856, University Library of Munich, Germany.
    11. Nakashima, Kiyotaka & Ogawa, Toshiaki, 2020. "The Impacts of Strengthening Regulatory Surveillance on Bank Behavior: A Dynamic Analysis from Incomplete to Complete Enforcement of Capital Regulation in Microprudential Policy," MPRA Paper 99938, University Library of Munich, Germany.
    12. Heinrich, Ralph P., 1999. "Complementarities in Corporate Governance - A Survey of the Literature with Special Emphasis on Japan," Kiel Working Papers 947, Kiel Institute for the World Economy (IfW Kiel).
    13. Charles Goodhart & Boris Hofmann, 2003. "Deflation, Credit and Asset Prices," Working Papers 132003, Hong Kong Institute for Monetary Research.
    14. Boris Hofmann, 2003. "Bank Lending and Property Prices: Some International Evidence," Working Papers 222003, Hong Kong Institute for Monetary Research.
    15. Fricke, Daniel & Roukny, Tarik, 2020. "Generalists and specialists in the credit market," Journal of Banking & Finance, Elsevier, vol. 112(C).
    16. Ian Maitland & Mitsuhiro Umezu, 2006. "An Evaluation of Japan's Stakeholder Capitalism," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 131-164.
    17. Limpaphayom, Piman & Rogers, Daniel A. & Yanase, Noriyoshi, 2019. "Bank equity ownership and corporate hedging: Evidence from Japan," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 765-783.
    18. Wu, Xueping & Yao, Jun, 2012. "Understanding the rise and decline of the Japanese main bank system: The changing effects of bank rent extraction," Journal of Banking & Finance, Elsevier, vol. 36(1), pages 36-50.
    19. Iftekhar Hasan & Larry D. Wall, 2004. "Determinants of the Loan Loss Allowance: Some Cross‐Country Comparisons," The Financial Review, Eastern Finance Association, vol. 39(1), pages 129-152, February.
    20. Imai, Masami, 2019. "Regulatory responses to banking crisis: Lessons from Japan," Global Finance Journal, Elsevier, vol. 39(C), pages 10-16.

    More about this item

    Keywords

    bank; crisis; Taiwan; Japan;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:14939. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.