Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks
One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We f...
Ausführliche Beschreibung
Gespeichert in:
| Autor*in: |
Nishimura, Kiyohiko G. [verfasserIn] Kawamoto, Yuko [verfasserIn] |
|---|
| Format: |
E-Artikel |
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| Erschienen: |
Oxford, UK and Boston, USA: Blackwell Publishing Ltd ; 2003 |
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| Umfang: |
Online-Ressource |
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| Reproduktion: |
2003 ; Blackwell Publishing Journal Backfiles 1879-2005 |
|---|---|
| Übergeordnetes Werk: |
In: The world economy - Oxford : Wiley-Blackwell, 1977, 26(2003), 3, Seite 0 |
| Übergeordnetes Werk: |
volume:26 ; year:2003 ; number:3 ; pages:0 |
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| DOI / URN: |
10.1111/1467-9701.00524 |
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| 520 | |a One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. | ||
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10.1111/1467-9701.00524 doi (DE-627)NLEJ243638787 DE-627 ger DE-627 rakwb Nishimura, Kiyohiko G. verfasserin aut Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks Oxford, UK and Boston, USA Blackwell Publishing Ltd 2003 Online-Ressource nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. 2003 Blackwell Publishing Journal Backfiles 1879-2005 |2003|||||||||| Kawamoto, Yuko verfasserin aut In The world economy Oxford : Wiley-Blackwell, 1977 26(2003), 3, Seite 0 Online-Ressource (DE-627)NLEJ243927061 (DE-600)1473825-9 1467-9701 nnns volume:26 year:2003 number:3 pages:0 http://dx.doi.org/10.1111/1467-9701.00524 text/html Verlag Deutschlandweit zugänglich Volltext GBV_USEFLAG_U ZDB-1-DJB GBV_NL_ARTICLE AR 26 2003 3 0 |
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10.1111/1467-9701.00524 doi (DE-627)NLEJ243638787 DE-627 ger DE-627 rakwb Nishimura, Kiyohiko G. verfasserin aut Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks Oxford, UK and Boston, USA Blackwell Publishing Ltd 2003 Online-Ressource nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. 2003 Blackwell Publishing Journal Backfiles 1879-2005 |2003|||||||||| Kawamoto, Yuko verfasserin aut In The world economy Oxford : Wiley-Blackwell, 1977 26(2003), 3, Seite 0 Online-Ressource (DE-627)NLEJ243927061 (DE-600)1473825-9 1467-9701 nnns volume:26 year:2003 number:3 pages:0 http://dx.doi.org/10.1111/1467-9701.00524 text/html Verlag Deutschlandweit zugänglich Volltext GBV_USEFLAG_U ZDB-1-DJB GBV_NL_ARTICLE AR 26 2003 3 0 |
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10.1111/1467-9701.00524 doi (DE-627)NLEJ243638787 DE-627 ger DE-627 rakwb Nishimura, Kiyohiko G. verfasserin aut Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks Oxford, UK and Boston, USA Blackwell Publishing Ltd 2003 Online-Ressource nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. 2003 Blackwell Publishing Journal Backfiles 1879-2005 |2003|||||||||| Kawamoto, Yuko verfasserin aut In The world economy Oxford : Wiley-Blackwell, 1977 26(2003), 3, Seite 0 Online-Ressource (DE-627)NLEJ243927061 (DE-600)1473825-9 1467-9701 nnns volume:26 year:2003 number:3 pages:0 http://dx.doi.org/10.1111/1467-9701.00524 text/html Verlag Deutschlandweit zugänglich Volltext GBV_USEFLAG_U ZDB-1-DJB GBV_NL_ARTICLE AR 26 2003 3 0 |
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10.1111/1467-9701.00524 doi (DE-627)NLEJ243638787 DE-627 ger DE-627 rakwb Nishimura, Kiyohiko G. verfasserin aut Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks Oxford, UK and Boston, USA Blackwell Publishing Ltd 2003 Online-Ressource nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. 2003 Blackwell Publishing Journal Backfiles 1879-2005 |2003|||||||||| Kawamoto, Yuko verfasserin aut In The world economy Oxford : Wiley-Blackwell, 1977 26(2003), 3, Seite 0 Online-Ressource (DE-627)NLEJ243927061 (DE-600)1473825-9 1467-9701 nnns volume:26 year:2003 number:3 pages:0 http://dx.doi.org/10.1111/1467-9701.00524 text/html Verlag Deutschlandweit zugänglich Volltext GBV_USEFLAG_U ZDB-1-DJB GBV_NL_ARTICLE AR 26 2003 3 0 |
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10.1111/1467-9701.00524 doi (DE-627)NLEJ243638787 DE-627 ger DE-627 rakwb Nishimura, Kiyohiko G. verfasserin aut Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks Oxford, UK and Boston, USA Blackwell Publishing Ltd 2003 Online-Ressource nicht spezifiziert zzz rdacontent nicht spezifiziert z rdamedia nicht spezifiziert zu rdacarrier One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. 2003 Blackwell Publishing Journal Backfiles 1879-2005 |2003|||||||||| Kawamoto, Yuko verfasserin aut In The world economy Oxford : Wiley-Blackwell, 1977 26(2003), 3, Seite 0 Online-Ressource (DE-627)NLEJ243927061 (DE-600)1473825-9 1467-9701 nnns volume:26 year:2003 number:3 pages:0 http://dx.doi.org/10.1111/1467-9701.00524 text/html Verlag Deutschlandweit zugänglich Volltext GBV_USEFLAG_U ZDB-1-DJB GBV_NL_ARTICLE AR 26 2003 3 0 |
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One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. |
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One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. |
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One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation. |
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<?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>01000caa a22002652 4500</leader><controlfield tag="001">NLEJ243638787</controlfield><controlfield tag="003">DE-627</controlfield><controlfield tag="005">20210707183751.0</controlfield><controlfield tag="007">cr uuu---uuuuu</controlfield><controlfield tag="008">120427s2003 xx |||||o 00| ||und c</controlfield><datafield tag="024" ind1="7" ind2=" "><subfield code="a">10.1111/1467-9701.00524</subfield><subfield code="2">doi</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-627)NLEJ243638787</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-627</subfield><subfield code="b">ger</subfield><subfield code="c">DE-627</subfield><subfield code="e">rakwb</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Nishimura, Kiyohiko G.</subfield><subfield code="e">verfasserin</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Oxford, UK and Boston, USA</subfield><subfield code="b">Blackwell Publishing Ltd</subfield><subfield code="c">2003</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">Online-Ressource</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="a">nicht spezifiziert</subfield><subfield code="b">zzz</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="a">nicht spezifiziert</subfield><subfield code="b">z</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="a">nicht spezifiziert</subfield><subfield code="b">zu</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="520" ind1=" " ind2=" "><subfield code="a">One of the most perplexing factors in the Japanese financial crisis is the apparently non-optimal and non-rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset-market crash in 1990. The stagnation and free-fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset-price deflation and economic stagnation.</subfield></datafield><datafield tag="533" ind1=" " ind2=" "><subfield code="d">2003</subfield><subfield code="f">Blackwell Publishing Journal Backfiles 1879-2005</subfield><subfield code="7">|2003||||||||||</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Kawamoto, Yuko</subfield><subfield code="e">verfasserin</subfield><subfield code="4">aut</subfield></datafield><datafield tag="773" ind1="0" ind2="8"><subfield code="i">In</subfield><subfield code="t">The world economy</subfield><subfield code="d">Oxford : Wiley-Blackwell, 1977</subfield><subfield code="g">26(2003), 3, Seite 0</subfield><subfield code="h">Online-Ressource</subfield><subfield code="w">(DE-627)NLEJ243927061</subfield><subfield code="w">(DE-600)1473825-9</subfield><subfield code="x">1467-9701</subfield><subfield code="7">nnns</subfield></datafield><datafield tag="773" ind1="1" ind2="8"><subfield code="g">volume:26</subfield><subfield code="g">year:2003</subfield><subfield code="g">number:3</subfield><subfield code="g">pages:0</subfield></datafield><datafield tag="856" ind1="4" ind2="0"><subfield code="u">http://dx.doi.org/10.1111/1467-9701.00524</subfield><subfield code="q">text/html</subfield><subfield code="x">Verlag</subfield><subfield code="z">Deutschlandweit zugänglich</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">GBV_USEFLAG_U</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-1-DJB</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">GBV_NL_ARTICLE</subfield></datafield><datafield tag="951" ind1=" " ind2=" "><subfield code="a">AR</subfield></datafield><datafield tag="952" ind1=" " ind2=" "><subfield code="d">26</subfield><subfield code="j">2003</subfield><subfield code="e">3</subfield><subfield code="h">0</subfield></datafield></record></collection>
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