Title Banking in Japan: Will "Too Big To Fail" Prevail? Rixtel, Adrian van; Wiwattanakantang, Yupana; Author(s) Souma, Toshiyuki; Suzuki, Kazunori Citation Issue Date 2002-12 Type Technical Report Text Version publisher URL http://hdl.handle.net/10086/13912 Right Hitotsubashi University Repository Center for Economic Institutions Working Paper Series CEI Working Paper Series, No. 2002-16 Banking in Japan: Will “To Big to Fail” Prevail? Adrian van Rixtel Yupana Wiwattanakantang Toshiyuki Souma Kazunori Suzuki Center for Economic Institutions Working Paper Series Institute of Economic Research Hitotsubashi University 2-1 Naka, Kunitachi, Tokyo, 186-8603 JAPAN Tel: +81-42-580-8405 Fax: +81-42-580-8333 e-mail:
[email protected] Banking in Japan:Will “Too Big To Fail” Prevail? Adrian van Rixtela, Yupana Wiwattanakantangb, Toshiyuki Soumac and Kazunori Suzukid a European Central Bank, Postfach 16 03 19, D-60066 Frankfurt am Main GERMANY b Center for Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, JAPAN c Faculty of Economics, Kyoto Gakuen University, Nanjo, Sogabe-cho, Kameoka, Kyoto 621-8555, JAPAN d Professor of Finance, Graduate School of International Accounting Chuo University Room 1556, 42-8, Ichigaya-Honmuracho, Shinjuku-ku, Tokyo 162-0845, JAPAN Abstract This paper reviews the evolution of the Japanese banking sector and the development of the banking crisis in Japan in the context of “too big to fail.” It describes the deterioration of the Japanese financial sector caused by the bad loan problems and the failure of policymakers to get a grip on the underlying problems.