Has Competition in the Japanese Banking Sector Improved?

Posted: 25 Dec 2004

See all articles by Hirofumi Uchida

Hirofumi Uchida

Kobe University - Graduate School of Business Administration

Yoshiro Tsutsui

Kyoto Bunkyo University

Abstract

This paper investigates whether competition in the Japanese banking sector has improved in the last quarter of the 20th century. By estimating the first order condition of profit maximization, together with the cost function and the inverse demand function, we found that competition had improved, especially in the 1970s and in the first half of the 1980s. The results fail to reject a Cournot oligopoly for city banks for most of the period, while they do reject it for regional banks for the overall period. This suggests that competition among city banks was stronger than that among regional banks.

Keywords: Japanese banks, Degree of competition, Loan market

JEL Classification: G21, L13

Suggested Citation

Uchida, Hirofumi and Tsutsui, Yoshiro, Has Competition in the Japanese Banking Sector Improved?. Available at SSRN: https://ssrn.com/abstract=632904

Hirofumi Uchida

Kobe University - Graduate School of Business Administration ( email )

2-1, Rokkodai-cho, Nada-ku
Kobe, 657-8501
Japan
81-78-803-6949 (Phone)

HOME PAGE: http://www.b.kobe-u.ac.jp/~uchida

Yoshiro Tsutsui (Contact Author)

Kyoto Bunkyo University ( email )

Senzoku-80 Makishimacho
Uji, Kyoto 611-0041
Japan

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
918
PlumX Metrics