1997 Fiscal Year Final Research Report Summary
Is the U.S.Banking Industry in Decline?
| Project/Area Number |
07630090
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | MEIJI UNIVERSITY |
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Principal Investigator |
TAKAGI Hitoshi Meiji Univ./ School of Commerce / Prof., 商学部, 教授 (20061856)
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| Project Period (FY) |
1995 – 1997
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| Keywords | U.S.Banking Declining / The Glass-Steagall / FDICIA of 1991 / Financial Holding Company / Financial Interindustry Problems / Diversified Financial Services Industry / Japanese Edition of Big Bang |
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| Research Abstract |
The arguements that the U.S.banking industry is in decline derives from observations based on banks' balance sheet activites. However, if we consider banks'off-balance sheet activities such as loan commitments, derivative transactions, the above-mentioned statements would be denyed. In the long run, we are on the verge of the time when banks' traditional activities would be dramatically changing.
A bank has long been defined as an institution that offers both checking deposir accounts and loan extensions. Now, it would be better to difine it as an institution that underwrites and manages risks, or does what a so-called bank does.
What we observe things happened in Japanese and American banking industry right now are the facts that every kind of financial institution in a broad sense operate themselves beyoned distinction of old industry concepts. In the United States, the Congress has consecutively struggled since 1991 to pass legislation to allow banks to offer wider range of services through a financial services holding compnany or a diversified holding company, which has not yet succeeded. In Japan, in the process of so-called Japanese Edition of Big Bang, the same developments are expected to go further to confirm to worldwide de fact standards.
To describe and analyze those developments in the U.S.and Japan, the head investigator of this research project has worked on and published those themes such as "In the U.S.Banking Industry in Decline? " "The Glass-Steagall", "FDICIA of 1991, "Financial Holding Company Scheme in Japan, " "Financial Interindustry Problems in the U.S., " "Narrow Banking and Credit Creation, " during the period April 1995 - March 1998.
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