Bank Mergers and Competition in Japan

Authors

  • Kang H. Park Southeast Missouri State University, United States

DOI:

https://doi.org/10.32890/ijbf2012.9.2.1

Keywords:

Bank consolidation, Market competition, Japanese banks, Bubbles, Korea, Japan, China

Abstract

Using H-statistic of the Panzar-Rosse model, this paper examines commercial bank merger waves in Japan and their effect on competition in the Japanese banking market during 1983-2006. The H-statistic is estimated separately for three different time periods, the boom, the burst and the recovery. This paper concludes that the bank mergers that took place in Japan have not led to a higher level of market power except during the period of financial crisis around the time of bubble burst. Recent mergers in the Japan’s banking sector do not seem to harm the competition level in the banking market. An increase in individual bank’s market share and an increase in overall market concentration have not materialized in higher net interest margin in Japan.

 

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Published

12-06-2012

Issue

Vol. 9 No. 2 (2012): International Journal of Banking and Finance (IJBF) Vol. 9, No.2, 2012

Section

Articles

How to Cite

Park, K. H. (2012). Bank Mergers and Competition in Japan. International Journal of Banking and Finance, 9(2), 1-25. https://doi.org/10.32890/ijbf2012.9.2.1

Research impact

Harvested 2026-09-07
13 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2012.9.2.1 OpenAlex W101183831