Title
Bank regulation and supervision in Japan and Germany: A comparison
Abstract
This paper describes and compares the regulation and supervision of banks
in Japan and Germany. We have chosen these countries because they have
both bank-dominated financial systems and belong to the same law tradition,
yet, bank stability differs significantly. We ask to what extent these
countries follow best practice regulations in banking and whether differences
in banking stability and efficiency can be explained by regulatory and
supervisory differences. We argue that bank regulation and supervision
are less efficient in Japan than in Germany and show why Japan and Germany
have made different regulatory and supervisory choices.
Keywords: Bank regulation and supervision
Banking stability and banking efficiency
deposit insurance
Lender of last resort
Forbearance
Japan and Germany
JEL Classification: G21, G32
Ralf BEBENROTH
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059
Diemo DIETRICH
Halle Institute for Economic Research
Uwe VOLLMER
University of Leipzig