Does the Presence of the Japan Post Bank in a Regional Financial Market Affect the Deposit Interest Rates of Credit Associations?
The former Minister Shizuka Kamei, who was appointed as the Minister for Financial Services during the premiership of Yukio Hatoyama, pushed reforms to change the previous goal of completely privatizing the postal services. The basic policy is that participation by the government in the businesses of postal savings will be practically maintained and the ceiling of postal savings will be raised from 10,000,000 yen to 20,000,000 yen. Therefore, in the present study we analyzed whether credit associations in a region whose share of postal savings is larger are being pressured to set higher deposit interest rates due to the presence of postal savings. The results showed that the presence of postal savings in a region does not pressure credit associations to set higher deposit interest rates, at least under the present conditions. It can thus be concluded that if a set of reforms is carried out which maintains the participation of the government in the Japan Post Bank, the ceiling of postal savings should be frozen at the present level.
|Date of creation:||Aug 2010|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prager, Robin A & Hannan, Timothy H, 1998. "Do Substantial Horizontal Mergers Generate Significant Price Effects? Evidence from the Banking Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 433-452, December.
- Erik Heitfield & Robin Prager, 2004. "The Geographic Scope of Retail Deposit Markets," Journal of Financial Services Research, Springer;Western Finance Association, vol. 25(1), pages 37-55, February.
- Lloyd-Williams, D. M. & Molyneux, Phil & Thornton, John, 1994. "Market structure and performance in Spanish banking," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 433-443, May.
- Clarke, Roger & Davies, Stephen & Waterson, Michael, 1984. "The Profitability-Concentration Relation: Market Power or Efficiency?," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 435-450, June.
- Ken Holden & Magdi El-Bannany, 2004. "Investment in information technology systems and other determinants of bank profitability in the UK," Applied Financial Economics, Taylor & Francis Journals, vol. 14(5), pages 361-365.
- Samy Ben Naceur & Mohamed Goaied, 2001. "The determinants of the Tunisian deposit banks' performance," Applied Financial Economics, Taylor & Francis Journals, vol. 11(3), pages 317-319.
- Allen N. Berger & Timothy H. Hannan, 1987. "The price-concentration relationship in banking," Research Papers in Banking and Financial Economics 100, Board of Governors of the Federal Reserve System (U.S.).
- Robert Tokle & Joanne Tokle, 2000. "The Influence of Credit Union and Savings and Loan Competition on Bank Deposit Rates in Idaho and Montana," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 17(4), pages 427-439, December.
- Douglas D. Evanoff & Diana L. Fortier, 1987. "Reevaluation of the structure-conduct-performance paradigm in banking," Staff Memoranda 87-9, Federal Reserve Bank of Chicago.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24332. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.