Cross-Prefecture Expansion of Regional Banks in Japan and Its Effects on Lending-Based Income
This paper examines whether Japanese regional banks entering the banking market in other prefectures, including neighboring prefectures, can increase their lending-based income. To stimulate local economies and support local small- and medium-sized enterprises (SMEs), the current Japanese government’s policies for regional banks require these banks to engage in region-based relationship banking practices. In this study, three lending-based income measures were used as dependent variables, and estimation was made using panel data from Japanese regional banks. As a result, it was determined that regional banks that enter markets in other prefectures experience positive effects in all three lending-based income measures. Moreover, it was determined that regional banks whose headquarters are located in non-urban areas derive greater benefit from their loan businesses upon entry into other prefectures, including neighboring prefectures, where economic activity is more vibrant than regional banks whose headquarters are located in urban areas.
|Date of creation:||16 Jan 2014|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
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.:
- Saeed Al-Muharrami & Kent Matthews, 2009.
"Market power versus efficient-structure in Arab GCC banking,"
Applied Financial Economics,
Taylor & Francis Journals, vol. 19(18), pages 1487-1496.
- Al-Muharrami, Saeed & Matthews, Kent, 2009. "Market Power versus Efficient-Structure in Arab GCC Banking," Cardiff Economics Working Papers E2009/7, Cardiff University, Cardiff Business School, Economics Section.
- 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.
- Felici Roberto & Pagnini Marcello, 2005. "Distance, bank heterogeneity and entry in local banking markets," Temi di discussione (Economic working papers) 557, Bank of Italy, Economic Research and International Relations Area.
- Berger, Allen N, 1995. "The Profit-Structure Relationship in Banking--Tests of Market-Power and Efficient-Structure Hypotheses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 404-431, May.
- Zou, YongDong & Miller, Stephen M. & Malamud, Bernard, 2011. "Geographic deregulation and commercial bank performance in U.S. state banking markets," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(1), pages 28-35, February.
- YongDong Zou & Stephen M. Miller & Bernard Malamud, 2008. "Geographic Deregulation and Commerical Bank Performance in US State Banking Markets," Working Papers 0802, University of Nevada, Las Vegas , Department of Economics.
- YongDong Zou & Stephen M. Miller & Bernard Malamud, 2008. "Geographic Deregulation and Commercial Bank Performance in US State Banking Markets," Working papers 2008-25, University of Connecticut, Department of Economics.
- Berger, Allen N & Hannan, Timothy H, 1989. "The Price-Concentration Relationship in Banking," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 291-299, May.
- Allen N. Berger & Timothy H. Hannan, 1988. "The price-concentration relationship in banking," Finance and Economics Discussion Series 23, Board of Governors of the Federal Reserve System (U.S.).
- Goddard, John & McKillop, Donal & Wilson, John O.S., 2008. "The diversification and financial performance of US credit unions," Journal of Banking & Finance, Elsevier, vol. 32(9), pages 1836-1849, September.
- Robert Feinberg, 2008. "Explaining the Credit Union Entry Decision, and Implications for Performance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 81-91, August.
- Hirtle, Beverly J. & Stiroh, Kevin J., 2007. "The return to retail and the performance of US banks," Journal of Banking & Finance, Elsevier, vol. 31(4), pages 1101-1133, April.
- Beverly Hirtle & Kevin J. Stiroh, 2005. "The return to retail and the performance of U.S. banks," Staff Reports 233, Federal Reserve Bank of New York.
- Rivard, Richard J. & Thomas, Christopher R., 1997. "The effect of interstate banking on large bank holding company profitability and risk," Journal of Economics and Business, Elsevier, vol. 49(1), pages 61-76, February.
- Jesus Gustavo Garza-Garcia, 2012. "Does market power influence bank profits in Mexico? A study on market power and efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 22(1), pages 21-32, January.
- Allen N. Berger & Seth D. Bonime & Lawrence G. Goldberg & Lawrence J. White, 2004. "The Dynamics of Market Entry: The Effects of Mergers and Acquisitions on Entry in the Banking Industry," The Journal of Business, University of Chicago Press, vol. 77(4), pages 797-834, October.
- Steven Pilloff & Stephen Rhoades, 2002. "Structure and Profitability in Banking Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(1), pages 81-98, 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.
- Franz Hahn, 2008. "Testing for profitability and contestability in banking: evidence from Austria," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(5), pages 639-653.
- Nippani, Srinivas & Green, Kenneth Jr., 2002. "The banking industry after the Riegle-Neal Act: re-structure and overall performance," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(5), pages 901-909.
- Smirlock, Michael, 1985. "Evidence on the (Non) Relationship between Concentration and Profitability in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(1), pages 69-83, February.
- Hirtle, Beverly, 2007. "The impact of network size on bank branch performance," Journal of Banking & Finance, Elsevier, vol. 31(12), pages 3782-3805, December.
- Beverly Hirtle, 2005. "The impact of network size on bank branch performance," Staff Reports 211, Federal Reserve Bank of New York.
- 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.
- 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.
- Chong, Beng Soon, 1991. "The Effects of Interstate Banking on Commercial Banks' Risk and Profitability," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 78-84, February.
- Sherrill Shaffer & Soumya Srinivasan, 2002. "Structure-pricing linkages among singlemarket banks, controlling for credit quality," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 653-656. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:52978. 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 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.