Consolidation of banks in Japan
Subtitle: causes and consequences
By: Kaoru Hosono, Koji Sakai, Kotaro Tsuru.
Contributors: Sakai, K.; Tsuru, Kotaro.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 13399.; Working paper series (National Bureau of Economic Research) -- working paper no. 13399.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 65
Subjects: Bank mergers -- Japan -- Mathematical models; Banks and banking -- Government policy -- Japan
Description: We investigate the motives and consequences of the consolidation of banks in Japan during the period of fiscal year 1990-2004 using a comprehensive dataset. Our analysis suggests that the government's too-big-to-fail policy played an important role in the mergers and acquisitions (M&As), though its attempt does not seem to have been successful. The efficiency-improving motive also seems to have driven the M&As conducted by major banks and regional banks in the post-crisis period, while the market-power motive seems to have driven the M&As conducted by regional banks and corporative (shinkin) banks. We obtain no evidence that supports managerial motives for empire building.
Notes: "September 2007"

Includes bibliographical references (p. 43-45).

Also available in PDF from the NBER World Wide Web site (www.nber.org).