2005 Fiscal Year Final Research Report Summary
A STUDY ON THE ECONOMIC ENVIRONMENT OF BANKS IN METROPOLITAN AREA AND THEIR NON-PERFORMING LOANS
| Project/Area Number |
14203008
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (A)
|
| Allocation Type | Single-year Grants |
|---|
| Section | 一般 |
|---|
| Research Field |
Public finance/Monetary economics
|
|---|
| Research Institution | KYUSHU UNIVERSITY |
|---|
Principal Investigator |
HORIE Yasuhiro KYUSHU UNIVERSITY, Faculty of Economics, Professor, 大学院・経済学研究院, 教授 (80209288)
|
|---|
| Co-Investigator(Kenkyū-buntansha) |
KAWAMUKAI Hajime University of Hyogo, Graduate School of Applied Informatics, Associate Professor, 大学院・応用情報科学研究科, 助教授 (30234123)
|
|---|
| Project Period (FY) |
2002 – 2005
|
| Keywords | Credit Rating / Nonperforming Loan / Market Environment / Stock Price / Financial Soundness / Return to Home Prefecture / Abolition of Branches / Business Relations |
|---|
| Research Abstract |
We estimated the amount of non-performing loans of Japanese banks in early 2000's in Tokyo metropolitan area, by utilizing the companies' evaluation profile data, issued by Teikoku Data Bank. By using all data of the companies capitalized more than 10 million yen, the result is that 60% of the estimated amount of non-performing loans are from construction, real estates, finance, retail & whole sale companies. Using these micro data, we also explored the relationship between loaned companies and banks from a geographical view point. We have found that the most loaned companies, even for the mega banks, were found in small area with a certain distance from the branches, in Tokyo metropolitan area, due to their movement toward the more profitable retailed loans.
Next, when observing the stock prices for the local banks, their ranges are getting wider, which reflect the serious concerns for the financial performance in long term and soundness of assets, in the stock market. Regarding the loan strategies for these regional banks, we have shown that they have increased both the amount of loans in the regions where their local branches cover, and that of syndicated loans. Our results shows that the key factors for bank survival are having sound financial portfolio and restructuring for efficient banking service. Regarding restructuring of the mega banks, we found the branches, which have less competitors' branches and have a good amount of the clerks, tends to survive in Hanshin Metropolitan Area.
We have also explored the behavior of the enclosure of the good performing firms by being the "main bank".
From our observation, the incentive of being a "main bank" for the mega banks is different between that for regional banks. For the regional banks, particularly, having loans to the good performing firms is more important than being the "main banks", for possible improvement of their financial performances.
|
Research Products
(9 results)
