Yokoyama, Kazuki (2007): Too Big to Fail: the Panic of 1927. Published in: Discussion Papers in Economics No. 465
Download (86kB) | Preview
This paper measures that the Bank of Japan adopted the too-big-to-fail doctrine against the panic of 1927. The results at this paper imply that supported banks had higher closure risk or occupied key positions in the local loan-markets. And this paper finds that the Bank of Japan bailed out solvent banks if they had political importance.
|Item Type:||MPRA Paper|
|Institution:||Graduate School of Economics, Nagoya City University|
|Original Title:||Too Big to Fail: the Panic of 1927|
|Keywords:||lender of last resort (LLR); too big to fail; the panic of 1927; bank closure|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
N - Economic History > N2 - Financial Markets and Institutions > N25 - Asia including Middle East
|Depositing User:||Kazuki YOKOYAMA|
|Date Deposited:||18. Apr 2007|
|Last Modified:||13. Feb 2013 22:28|
Acharya, V.V. and T. Yorulmazer (2007). “Too Many to Fail - An Analysis of Time-Inconsistency in Bank Closure Policies,” Journal of Financial Intermediation, 16(1): 1-31.
Asai, Y. (2000). “1927nen Ginkou Ho kara Sengo Kin’yu seido kaikaku e (From the Bank Law of 1927 to Postwar Reforms),” Chapter 5 in Kin’yu Kiki to Kakushin: Rekishi kara Gendai e (Financial Crises and Innovation: from History to Contemporary), edited by Ito, M., S. Tsurumi and Y. Asai, Tokyo: Nihonkekeizai Hyouronsha, 139-175.
Bagehot , W. (1873). Lombard Street: A Description of the Money Market, London: HS King.
Bank of Japan (1962).“Shouwa Ni-nen Houritsu Dai Goju-Go Gou niyoru Tokubetsu Yuzu Meisaisho (The Report on Special Loans due to the Law No.55 of 1927)” in Nippon Ginkou Enkaku-Shi (The history of the Bank of Japan), Part III, volume 6, edited by the Bank of Japan, Printing Bureau of the Ministry of Finance, 358-365.
Bank of Japan (1969). Nihon Kin’yushi Shiryo (Materials on Japanese Financial History), Showa edition, volume 24, edited by the Bank of Japan, Printing Bureau of the Ministry of Finance.
Bank of Japan (1983). “Nippon Ginkou Hyakunen Shi ( The 100 Years History of the Bank of Japan),” volume 3, edited by the Bank of Japan, Tokyo: Printing Bureau of the Ministry of Finance.
Bank of Japan (1988). “Kurita Ginkou no Toritsuke (Withdrawals on Kurita Bank),” in Nihon Kin’yushi Shiryo (Materials on Japanese Financial History), Shouwa-Zoku edition, volume 3, edited by the Bank of Japan, Printing Bureau of the Ministry of Finance, 311.
Bordo, M. D. (1990). “The Lender of Last Resort: Alternative Views and Historical Experience, Federal Reserve Bank of Richmond,” Economic Review 76:18-29.
Brown, C. O. and I. S. Dinç (2005). “The Politics of Bank Failures: Evidence from Emerging Markets,” The Quarterly Journal of Economics, 120(4): 1413-1444.
Calomiris, C. W. and J. R. Mason (2003a). “Fundamentals, Panics, and Bank Distress During the Depression,” The American Economic Review, 93:1615-1647.
Calomiris, C. W. and J. R. Mason (2003b). How to Restructure Failed Banking Systems: Lessons from the U.S. in the 1930’s and Japan in the 1990’s, NBER Working Paper Series No.9624.
Carlson, M. (2005). “Causes of Bank Suspensions in the Panic of 1893,” Explorations in Economic History, 42:56-80.
Diamond, D. W. and P. H. Dybvig (1983). “Bank Runs, Deposit Insurance, and Liquidity,” Journal of Political Economy, 91:401-409.
Ehiro, A. (2000). “Kin’yu Kiki to Kouteki Sikin Dounyu (Financial Crises and Special Loans by The Bank of Japan),” Chapter 4 in Kin’yu Kiki to Kakushin: Rekishi kara Gendai e (Financial Crises and Innovation: from History to Contemporary), edited by Ito, M., S. Tsurumi and Y. Asai, Tokyo: Nihonkekeizai Hyouronsha, 109-138.
Freixas, X., B. M. Parigi, and J. Rochet (2002). “Systemic Risk, Interbank Relations, and Liquidity Provision by the Central Bank,” Chapter 19 in Financial Crises, Contagion, and the Lender of Last Resort, edited by C. Goodhart and G. Illing, New York: Oxford University Press, 407-433.
Fukai, E. (1941). Kaiko Nanaju Nen (Memoirs of 70 years), Tokyo: Iwanami Shoten.
Gorton, G. (1985). “Bank’s Suspension of Convertibility,” The Journal of Monetary Economics, 15:177-193.
Gup, B. E., editor (2005). Too Big to Fail: Policies and Practices in Government Bailouts, , New York; Praeger Publishers.
Goodhart, C. and H. Haung (2005). “The Lender of Last resort,” The Journal of Banking and Finance, 29:1059-82.
Hijikata, S. (1933). Kokumin Shotoku no Kousei (Components of National Income), Nihon Hyouronsha.
Hoshi, T. and A. Kashyap (2001). Corporate Financing and Governance in Japan: Road to the Future, MIT Press.
Ishii, K. (1980). “Chihou Ginkou to Nippon Ginkou (Ordinary Banks in the Local Area and the Bank of Japan),” Chapter 2 in Ryotaisenkan niokeru Kin’yu Kozo (The Financial Structure in the Interwar Period), edited by T. Asakura, Tokyo; Ochanomizu Shobou, 115-166.
Ishii, K. (1999). “Nippon Ginkou Shinyou no Igi (The Importance of Credit Transactions with the Bank of Japan),” Chapter 3 in Kindai Nihon Kin’yushi Josetsu ( Introduction to the Modern Japanese), Tokyo: The University of Tokyo Press, 191-232.
Ishii, K. (2001). “Senkanki no Kin’yu Kiki to Chihou Ginkou (Financial Crises and Local Bank in the Interwar Period),” Chapter 1 in Kin’yukiki to Chihou Ginkou (Financial Crises and Local Banks), edited by Ishii K. and K.Sugiyama, Tokyo: The University of Tokyo Press, 3-22.
Kato, T. (1957). “Honpo Ginkoushi Ron (History of Banks in Japan),” Tokyo: The University of Tokyo Press.
Kasuya, M. (2001). “Shin’you Chitsujo no Iji (The Prudential Policy),” Section2 at Chapter 2 in Nippon Ginkou Kin’yu Seisaku Shi (The History of the Financial Policy by the Bank of Japan), edited by K. Ishii, Tokyo; The University of Tokyo Press, 105-117.
Korenaga,T., T. Nagase, and J. Teranishi (2001). “1927 nen Kin’yu Kyoko kano Yokin Toritsuke Ginkou Kyugyo nikansuru Suryo Bunseki (The Quantitative Analysis about Bank Closures and Runs under the Showa Financial Crisis),” Keizai Kenkyu (The Economic Review) 52: 315–32.
Matsuzaki, H. (1928). “Nippon-Ginkou no Shijou Tousei-Ryoku Mondai (The Issue of the Market Control Power of the Bank of Japan),” Chapter 4 in Kin-yu Kyoko gono sho-Mondai (The Problems after the Panic of 1927), Osaka: Osaka Shouka University, 44-55.
Miron, J.A. (1986). “Financial Panics, the Seasonality of the Normal Interest Rate, and the Founding of the Fed,” The American Economic Review, 76(1):125-140.
Nakamura, M. (1988). Shouwa no Kyoukou (Crises in the Shouwa Period), Tokyo: Shougakkan.
Nier, E. and U. Baumann (2006). “Market Discipline, Disclosure and Moral Hazard in Banking, ” Journal of Financial Intermediation, 15(3): 332-361.
Okazaki, T. (2006a). Micro-aspects of Monetary Policy: Lender of Last Resort and Selection of Banks in Pre-war Japan, CIRJE Discussion Paper F-447 (University of Tokyo) .
Okazaki, T. (2006b). Senzen Nihon Ni Okeru Saigo No Kashite Kinou to Ginkou Keiei Ginkou Touta (Lender of Last Resort and selection of Banks in Pre-war Japan), CIRJE Discussion Paper J-145 (University of Tokyo).
Okazaki, T., M. Sawada, and K. Yokoyama (2005). “Measuring the Extent and Implications of Director Interlocking in the Prewar Japanese Banking Industries,” The Journal of Economic History, 64:1082-1115.
Rochet, F. and J. Tirole (1996). “Interbank Lending and Systemic Risk,” Journal of Money, Credit, and Banking, 28:733-762.
Rosenbaum, P. R. and D. B. Rubin (1983). “The Central Role of the Propensity Score in Observational Studies for Causal Effects,” Biometrika, 70:688-701.
Takahashi, K., and S.Morigaki (1993). Shouwa Kin’yu Kyoko Shi (The History of the Panic of 1927), Tokyo: Koudansha.
Teranishi, J. (1989). “Hukinko Seicho to Kin’yu (Unbalanced Growth and Finance),” Chapter 4 in Niju Kozo, Nihon Keizaishi 6 (Dual Struclure, Japanese Economic History 6), edited by T.Nakamura and K.Odaka, Tokyo; Iwanami Shoten, 185-229.
Teranishi, J. (1991). Kougyouka to Kin’yu shistemu (Industrialization and the Financial System), Tokyo: Touyou Keizai Sinpousha.
Teranishi, J. (1999). “The Main Bank System,” Chapter 3 in The Japanese Economic System and Its Historical Origins, edited by Okazaki, T. and M. Okuno-Fujiwara, New York: Oxford University Press, 63-96.
Teranishi, J. (2000). “The Fall of the Taisho Economic System.” Chapter 2 in Finance, Governance, and Competitiveness in Japan, edited by M. Aoki and G. R. Saxonhouse, Oxford: Oxford University Press, 43–63.
Yabushita, S., and A. Inoue (1993). “The Stability of the Japanese Banking System: A Historical Perspective,” Journal of the Japanese and International Economies, 7:387-407.
Yamazaki, H. (2000). Shouwa Kinyu Kyoukou (The Shouwa Financial Crisis), Tokyo: Toyou Keizai Shinposha, 129-219.
Available Versions of this Item
- Too Big to Fail: the Panic of 1927. (deposited 18. Apr 2007) [Currently Displayed]