The Japanese banks in the lasting low-, zero- and negative-interest rate environment

Arbeitspapier

The bursting of the Japanese bubble economy in the early 1990s put the stage for a lasting lowzero-, and negative-interest rate environment, which fundamentally changed the business environment for the Japanese commercial banks. On the income side, with interest margins becoming increasingly depressed, net interest revenues declined, which forced the banks to expand revenues from fees and commissions. The banks had to cut costs by reducing the number of employees, closing branches and merging into larger banks. The gradual concentration process has most recently cumulated in the relaxation of the monopoly law. With the capital allocation function of banks being undermined, the Japanese economy has become zombified, suffering from anemic growth.

Show object

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 169

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Monetary Policy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: Japan ; Bank of Japan ; monetary policy ; banks ; interest margin ; financial repression ; concentration ; regional banks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schnabl, Gunther ; Murai, Taiki
• Event: Veröffentlichung
• (who): Universität Leipzig, Wirtschaftswissenschaftliche Fakultät
• (where): Leipzig
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/229156