Bank-Firm Credit Network in Japan. An Analysis of a Bipartite Network

9 Pages Posted: 22 Jul 2014

See all articles by Luca Marotta

Luca Marotta

University of Palermo

Salvatore Miccichè

University of Palermo - Department of Physics and Chemistry

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies

Hiroshi Iyetomi

Niigata University

Hideaki Aoyama

GSAIS, Kyoto University

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics

Rosario N. Mantegna

University of Palermo

Date Written: July 17, 2014

Abstract

We present an analysis of the credit market of Japan. The analysis is performed by investigating the bipartite network of banks and firms which is obtained by setting a link between a bank and a firm when a credit relationship is present in a given time window. In our investigation we focus on a community detection algorithm which is identifying communities composed by both banks and firms. We show that the clusters obtained by directly working on the bipartite network carry information about the networked nature of the Japanese credit market. Our analysis is performed for each calendar year during the time period from 1980 to 2011. Specifically, we obtain communities of banks and networks for each of the 32 investigated years, and we introduce a method to track the time evolution of these communities on a statistical basis. We then characterize communities by detecting the simultaneous over-expression of attributes of firms and banks. Specifically, we consider as attributes the economic sector and the geographical location of firms and the type of banks. In our 32 year long analysis we detect a persistence of the over-expression of attributes of clusters of banks and firms together with a slow dynamics of changes from some specific attributes to new ones. Our empirical observations show that the credit market in Japan is a networked market where the type of banks, geographical location of firms and banks and economic sector of the firm play a role in shaping the credit relationships between banks and firms.

Keywords: Credit market, Networked market, Financial networks, Bipartite networks

JEL Classification: L10, G21, G32

Suggested Citation

Marotta, Luca and Miccichè, Salvatore and Fujiwara, Yoshi and Iyetomi, Hiroshi and Aoyama, Hideaki and Gallegati, Mauro and Mantegna, Rosario Nunzio, Bank-Firm Credit Network in Japan. An Analysis of a Bipartite Network (July 17, 2014). Available at SSRN: https://ssrn.com/abstract=2469069 or http://dx.doi.org/10.2139/ssrn.2469069

Luca Marotta

University of Palermo ( email )

Viale delle Scienza
Palermo, 90128
Italy

Salvatore Miccichè

University of Palermo - Department of Physics and Chemistry ( email )

Viale delle Scienze, Ed. 17
Palermo, PA 90128
Italy
+3909123899145 (Phone)

HOME PAGE: http://www.unipa.it/~salvatore.micciche

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies ( email )

7-1-28 Minato-jima, Minami-machi
Chuo-ku
Kobe, Hyogo 650-0047
Japan

Hiroshi Iyetomi

Niigata University ( email )

8050 Ikarashi-2-cho
Nishi-ku
Niigata, 9502181
Japan

Hideaki Aoyama

GSAIS, Kyoto University ( email )

Yoshida-Adachi-cho 1
Sakyo-ku
Kyoto, 606-8306
Japan
+81-9019011954 (Phone)

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

Rosario Nunzio Mantegna (Contact Author)

University of Palermo ( email )

Dipartimento di Fisica e Chimica
Viale delle Scienze, Edificio 18
Palermo, PA I-90128
Italy
+3909123899074 (Phone)
+3909123860815 (Fax)

HOME PAGE: http://www.unipa.it/persone/docenti/m/rosario.mantegna

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