The Performance of Japanese Banks in Relation to Safety Levels
Curtin Univ. Econ. & Finance Working Paper No. 2000-29
16 Pages Posted: 22 Aug 2001
Date Written: July 2000
Abstract
Japanenese banks over the past decade appear to have been more concerned with market penetration than with earnings and shareholder wealth maximisation.
This paper reports the results of an analysis of bank safety levels using a cross sectional sample of Japanese and European Banks compared in light of the unacceptably high reported levels of non-performing loans in the Japanese banking sector.
The results confirm that more attention should have been applied to balance sheet fundamentals in Japanese banking. It is conjectured that bank safety levels would have been higher and that the more prudent use of credit risk assessment and management would have avoided balance sheet problems.
Keywords: Japanese banks, European banks, bank safety levels, risk, balance sheet performance
JEL Classification: G15, G21
Suggested Citation: Suggested Citation
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