Effects of a bank consolidation promotion policy: evaluating the 1927 Bank Law in Japan
2007 ◽
Vol 14
(1)
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pp. 29-61
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This article investigates the impact of bank consolidations promoted by government policy, using data from pre-war Japan when the Ministry of Finance promoted bank consolidations through the Bank Law of 1927. We argue that policy-promoted consolidation had a positive effect on deposit growth, especially in the period when the financial system was unstable. On the other hand, it had a negative effect on profitability, particularly when there was no dominant bank among the participants or when more than two banks participated in the consolidation. Policy-promoted consolidation in such cases was likely to be accompanied by large organisational cost.
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2021 ◽
Vol 65
(2)
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pp. 207-219
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2020 ◽
Vol 4
(4)
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pp. 109-118
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2020 ◽
Vol 27
(2)
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pp. 60
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2020 ◽
Vol 17
(4)
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pp. 367-385
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2010 ◽
Vol 2
(1)
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pp. 103-130
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