Examining a loan-level matched sample of Japanese banks and firms, we study the factors determini... more Examining a loan-level matched sample of Japanese banks and firms, we study the factors determining the termination of bank-firm relationships. We find that such terminations are mainly driven by bank factors, and that these bank-driven terminations increase when the banks' capital conditions become worse. Furthermore, a longer duration relationship decreased the probability of termination substantially when the Japanese banking system was stable, but the duration effects weakened when the system became fragile.
Examining a loan-level matched sample of Japanese banks and firms, we study the factors determini... more Examining a loan-level matched sample of Japanese banks and firms, we study the factors determining the termination of bank-firm relationships. We find that such terminations are mainly driven by bank factors, and that these bank-driven terminations increase when the banks' capital conditions become worse. Furthermore, a longer duration relationship decreased the probability of termination substantially when the Japanese banking system was stable, but the duration effects weakened when the system became fragile.
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Papers by Koji Takahashi