Does Corporate Lending by Banks and Life Insurance Companies Differ?: Evidence from Japanese Economy in the Early 1980s

31 Pages Posted: 9 Apr 2010

See all articles by Yukihiro Yasuda

Yukihiro Yasuda

Hitotsubashi University

Noriyoshi Yanase

Keio University - Faculty of Business and Commerce

Motokazu Ishizaka

Fukuoka University

Date Written: April 9, 2010

Abstract

Comparing loans made by main banks to those made by life insurance companies, we test for the existence of specialization in corporate lending. Using a detailed data set with information on individual loans made in Japan in the early 1980s, we empirically examine credit specialization on the part of lenders by investigating the relationship between the concentration of loans from main banks and those from life insurance companies. Empirical evidence suggests that the amounts of loans made by main bank are negatively associated with those by life insurance companies, which is consistent with the lending characteristics of life insurance companies that are known as “Marginal Lenders”.

Keywords: Main Bank, Keiretsu, Japanese Life Insurance Market, Lending Behavior

JEL Classification: G21, G22

Suggested Citation

Yasuda, Yukihiro and Yanase, Noriyoshi and Ishizaka, Motokazu, Does Corporate Lending by Banks and Life Insurance Companies Differ?: Evidence from Japanese Economy in the Early 1980s (April 9, 2010). Available at SSRN: https://ssrn.com/abstract=1587076 or http://dx.doi.org/10.2139/ssrn.1587076

Yukihiro Yasuda

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

Noriyoshi Yanase (Contact Author)

Keio University - Faculty of Business and Commerce ( email )

2-15-45 Mita
Minato-ku
Tokyo 108-8345
Japan
1088345 (Fax)

Motokazu Ishizaka

Fukuoka University ( email )

Fukuoka 814-0180
Japan

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