IDEAS home Printed from https://ideas.repec.org/p/tky/jseres/2001cj63.html
   My bibliography  Save this paper

"Selection, Exits and Efficiency in the Japanese Banking Industry: An Historical Perspective" (in Japanese)

Author

Listed:
  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)

Abstract

In this paper we explore the long-term change of the industrial organization of the Japanese banking industry and its efficiency implication. In postwar Japan, the "convoy administration" by the Ministry of Finance rigidly controlled the entry into and exit from the banking industry, as well as the competition among the incumbent banks. Exits of banks were not only few, but also all of the exits were through mergers. On the other hand, in prewar Japan, a lot of banks exited through dissolution and bankruptcy, as well as thorough mergers. Using the data of the individual bank exits, we analyze the relationship between the exit of the bank and its performance. We find that, in prewar period, the lower the bank's performance was, the larger the probability of its exit through dissolution and bankruptcy was. Interestingly, this relationship cannot be observed concerning the exit thorough merger. The result concerning the exit thorough merger in the postwar period is the same. What differed from the prewar period was that there was no exit through the dissolution and bankruptcy in postwar period. We can conclude that while the selection mechanism of the inefficient banks worked in prewar Japan, it did not in the postwar period.

Suggested Citation

  • Tetsuji Okazaki, 2001. ""Selection, Exits and Efficiency in the Japanese Banking Industry: An Historical Perspective" (in Japanese)," CIRJE J-Series CIRJE-J-63, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:jseres:2001cj63
    as

    Download full text from publisher

    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2001/2001cj63.pdf
    Download Restriction: no

    Citations

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


    Cited by:

    1. Tetsuji Okazaki & Michiru Sawada & Kazuki Yokoyama, 2005. "Measuring the Extent and Implications of Director Interlocking in the Pre-war Japanese Banking Industry ?Published in "Journal of Economic History", Dec2005, Vol. 65 Issue 4, p1082-1115, 34p," CARF F-Series CARF-F-039, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    2. Okazaki, Tetsuji & Sawada, Michiru & Yokoyama, Kazuki, 2005. "Measuring the Extent and Implications of Director Interlocking in the Prewar Japanese Banking Industry," The Journal of Economic History, Cambridge University Press, vol. 65(04), pages 1082-1115, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:tky:jseres:2001cj63. 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: (CIRJE administrative office). General contact details of provider: http://edirc.repec.org/data/ritokjp.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.