Yamori, Nobuyoshi and Tomimura, Kei and Harimaya, Kozo (2009): What kinds of credit associations favor introducing new financial technology?
Download (153Kb) | Preview
Since 2003, the Financial Services Agency has set relationship banking enhancement program as an important strategic task to improve the functions of regional financial institutions. In this enhancement program, the FSA recommended that regional financial institutions introduce new financial products such as collateralized loan obligations (CLOs) and collateralized bond obligations (CBOs). However, this was left up to each institution’s discretion rather than being mandatory. This resulted in a large difference in the introduction of new products. Therefore, this paper has analyzed what kinds of credit associations favorably increased the use of new financial products. As a result, it has been confirmed that the larger their lending shares and management scale, and the better their business conditions are, the more positively they work on the introduction of new products. Considering the fact that relationships between financial institutions and enterprises tend to be fixed in Japan, this means that medium and small enterprises will have restrictions on the financial products they can use depending on the situation of their main banks.
|Item Type:||MPRA Paper|
|Original Title:||What kinds of credit associations favor introducing new financial technology?|
|Keywords:||Small businesses; New financial products; Relationship banking; Credit associations; Japan.|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Nobuyoshi Yamori|
|Date Deposited:||16. Dec 2009 14:29|
|Last Modified:||13. Feb 2013 21:25|
Berger, A., and G. Udell (2002). “Small Business Credit Availability and Relationship Lending: The Importance of Bank Organizational Structure” Economic Journal 112, pp. 32–53.
Boot, A.W.A. (2000). “Relationship Banking: What Do We Know? ” Journal of Financial Intermediation 9, pp. 7-25.
Mach, T.L., and J. D. Wolken (2006). “Financial Services Used by Small Businesses: Evidence from the 2003 Survey of Small Business Finances,” Federal Reserve Bulletin pp. A167–A195.
Petersen, M.A., and R.G. Rajan (1995). “The Effect of Credit Market Competition on Lending Relationships,” The Quarterly Journal of Economics 110, pp. 407–443.
Spiegel, M.M. and N. Yamori (2006). "Determinants of Voluntary Bank Disclosure: Evidence from Japanese Shinkin Banks" in M.Hutchison and F. Westermann (eds.) Japan's Great Stagnation: Financial And Monetary Policy Lessons for Advanced Economies (Cesifo Seminar), the MIT Press, pp. 103–127.
Yamori, N. (2009), “What types of small and medium-sized businesses are utilizing new financial products?,” iBusiness (forthcoming).