Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/229156 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 169
Publisher: 
Universität Leipzig, Wirtschaftswissenschaftliche Fakultät, Leipzig
Abstract: 
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.
Subjects: 
Japan
Bank of Japan
monetary policy
banks
interest margin
financial repression
concentration
regional banks
JEL: 
E50
E52
G21
Document Type: 
Working Paper

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