The empirical analysis of local bank consolidation on corporate borrowers.

2011 Fiscal Year Final Research Report

• Project/Area Number: 21730265
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Single-year Grants
• Research Field: Public finance/Monetary economics
• Research Institution: Nanzan University
• Principal Investigator: MIYAZAKI Hironobu 南山大学, 経済学部, 准教授 (70433521)
• Project Period (FY): 2009 – 2011
• Keywords: M & A / 取引先企業 / ロックイン効果 / リレーションシップバンキング

Research Abstract

We examine how the local bank consolidation affects corporate borrowers. To find the effect of consolidation directly, we focus on firms that transacted with only the merger banks. The results show that loan rates declines, and that loans to these firms increase after the bank merger. On the other hand, we do not find the changes of firm performance and employment significantly.