The Recent Internationalisation of Japanese Banks

Batten, Jonathan and Szilagyi, Peter (2010): The Recent Internationalisation of Japanese Banks. Published in: Japanese Economy , Vol. 38, No. 1 (2011): pp. 81-120.

Abstract

We investigate the changing role and direction of Japanese bank internationalisation with an emphasis on the period from 1995 to 2008. In recent years Japan has gone from being a net receiver of international bank lending of US$230 billion (1995) to a net lender to international banks of US$235 billion (2008). The analysis of the international positions demonstrates that (a) Japanese banks significantly reduced their international exposures to mitigate the effects of their failed loans in the Asia-Pacific region; (b) European integration has been associated with enhanced claims, while during the same period Japanese claims were reduced; (c) Japanese bank internationalisation appears to be at odds with customer-related motivations, although such a low risk strategy would be consistent with socio-cultural or geographic influences, the effects of asymmetries in information and risk aversion. Finally, we can add to existing facts concerning the differences between domestic and international banking.

• Item Type: MPRA Paper
• Language: English
• Keywords: Bank Financing; Financial Market Development; International Banking; Japan
• Subjects: F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries

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