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The Impact of Japanese Monetary Policy Crisis Management on the Japanese Banking Sector

34 Pages Posted: 29 May 2017  

Juliane Gerstenberger

University of Leipzig

Gunther Schnabl

University of Leipzig - Institute for Economic Policy

Date Written: April 24, 2017

Abstract

The paper analyses the impact of Japanese monetary policy crisis management on the Japanese banking sector since the 1998 Japanese financial crisis. It shows how low-cost liquidity provision as a means to stabilize banks has created a growing gap between deposits above lending and has compressed interest margins as the traditional source of bank’s income. Efficiency scores are compiled to estimate the impact of monetary policy crisis management on the efficiency of banks. The estimation results provide evidence that the Japanese monetary policy crisis management has contributed to declining efficiency in the banking sector despite or because of growing concentration.

Keywords: Japan, monetary policy, crisis management, banking sector, city banks, regional banks, shinkin banks, concentration

JEL Classification: E520, E580, F420, E630

Suggested Citation

Gerstenberger, Juliane and Schnabl, Gunther, The Impact of Japanese Monetary Policy Crisis Management on the Japanese Banking Sector (April 24, 2017). CESifo Working Paper Series No. 6440. Available at SSRN: https://ssrn.com/abstract=2976280

Juliane Gerstenberger

University of Leipzig ( email )

Marschnerstrasse 31
D-04109 Leipzig, 04109
Germany

Gunther Schnabl (Contact Author)

University of Leipzig - Institute for Economic Policy ( email )

Institute for Economic Policy
Grimmaische Straße 12
Leipzig, 04109
Germany

HOME PAGE: http://www.wifa.uni-leipzig.de/iwp/

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