Financial Turbulence and the Japanese Main Bank Relationship
- Topics:
- Commercial Banking
- Tags:
- Bank,
- Financial,
- Financial Services
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Overview: This paper, examines whether firms are still dependent on their main banks. The paper looks at a three-factor model of bank asset returns in which, in addition to interest rates and the return on the market portfolio, the client firms are sensitive to the returns on their main bank. The hypothesis is that the importance of a main bank relationship is likely to change over time. When banks are reluctant to lend in general, however, a firm that is unable to obtain funds from its main bank may find even worse prospects from other potential lenders.
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Format: PDF | Size: 140KB | Date: Dec 2000 | Pages: 27



