What is the impact of problem loans on Japanese bank productivity growth?

Mamatzakis, Emmanuel, Matousek, Roman and Vu, Anh Nguyet (2019) What is the impact of problem loans on Japanese bank productivity growth? Financial Markets, Institutions And Instruments, 28 (2). pp. 213-240. ISSN 0963-8008

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Abstract

This paper examines for the first time the impact of problem loans on productivity growth. We exploit a new data set of problem loans, identified as bankrupt and restructured loans, particularly available for Japanese commercial banks. Our parametric methodology quantifies the impact of these loans on productivity growth of the Japanese banking system, which endured a long-lasting effect of the crisis in the early 1990s. The results reveal that Japanese bank productivity growth was severely constrained by bankrupt loans. Further, we perform convergence cluster analysis to examine convergence across regions and over time. Limited convergence is observed, though Regional Banks seem to form convergence clusters for some regions which are illustrated by the blue and green areas in our map of Japan.

Item Type: Article
Additional Information: Special Issue: 2016 Portsmouth – Fordham Conference on Banking and Finance
Schools and Departments: School of Business, Management and Economics > Business and Management
Research Centres and Groups: Business and Finance Research Group
Subjects: H Social Sciences > HG Finance > HG1501 Banking
Depositing User: Anh Nguyet Vu
Date Deposited: 19 Jun 2019 11:47
Last Modified: 01 Jul 2019 12:16
URI: http://sro.sussex.ac.uk/id/eprint/82499

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