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Asset Price Bubble and Banks: The Case of Japan

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Listed:
  • Hossain Monzur
  • Farhana Rafiq

Abstract

This paper analyses the behaviour of the Japanese banks at the outset of the asset price bubble in the late 1980s. The paper argues that with the advent of financial deregulations, the declining trend of profitability forced the banks to exhibit speculative behaviour during the asset price bubble period (mid-1980s) to increase short term profit. This

Suggested Citation

  • Hossain Monzur & Farhana Rafiq, 2012. "Asset Price Bubble and Banks: The Case of Japan," Working Papers id:5002, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:5002
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Monzur Hossain, 2005. "Can Japan avert any future banking crisis?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 425-429.
    2. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1991. "Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(1), pages 33-60.
    3. Naoyuki Yoshino & Eisuke Sakakibara, 2002. "The Current State of the Japanese Economy and Remedies," Asian Economic Papers, MIT Press, vol. 1(2), pages 110-126.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    asset prices; japanese banks; japan; financial sector; financial liberalization; small and medium enterprises; debtor companies;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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