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
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, East Asia Seminar on Economics, Volume 18" 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  -