TY  - JOUR
AU  - Hosono, Kaoru
AU  - Sakai, Koji
AU  - Tsuru, Kotaro
TI  - Consolidation of Banks in Japan: Causes and Consequences
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13399
PY  - 2007
Y2  - September 2007
DO  - 10.3386/w13399
UR  - http://www.nber.org/papers/w13399
L1  - http://www.nber.org/papers/w13399.pdf
N1  - Author contact info:
Kaoru Hosono
Gakushuin University
Faculty of Economics
Mejiro 1-5-1, Toshima-ku
Tokyo 171-8588 JAPAN
Tel: 81-3-5992-4909
Fax: 81-3-5992-1007
E-Mail: kaoru.hosono@gakushuin.ac.jp

Koji Sakai
Research Fellow of the Japan Society
for the Promotion of Science
2-1 Naka, Kunitachi
Tokyo 186-8601
Japan
E-Mail: ed042002@srv.cc.hit-u.ac.jp

Kotaro Tsuru
Research Institute of Economy, Trade, and Industry
1-3-1, Kasumigaseki, Chiyoda-ku
Tokyo, 100-8901, JAPAN
Fax: 81-3-3501-8416
E-Mail: tsuru-kotaro@rieti.go.jp
M1  - published as Kaoru Hosono, Koji Sakai, Kotaro Tsuru. "Consolidation of Banks in Japan: Causes and Consequences," in Takatoshi Ito and Andrew K. Rose, editors, "Financial Sector Development in the Pacific Rim" University of Chicago Press (2009)

M3  - presented at "18th Annual East Asian Seminar on Economics", June 22-24, 2007
AB  - 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.
ER  -