Does prefecture characteristics affect bank profitability in Japan?

Nguyen, T ORCID: https://orcid.org/0000-0002-2258-900X and Minegishi, S, 2022. Does prefecture characteristics affect bank profitability in Japan? In: 7th Vietnam Symposium in Banking and Finance, Hanoi, Vietnam, 27-29 October 2022.

Presentation 1761499_Nguyen.pptx - Published version Download (560kB)

Abstract

This paper models the recent structural feature of regional based banks and the impacts of prefecture characteristics on bank profitability using panel data from Japanese commercial banks between 2011 and 2018. We use the generalised method of moments, GMM, (Arellano and Bond, 1991; Blundell and Bond, 1998) to estimate our dynamic panel data models. The GMM technique controls for unobservable heterogeneity, we find that bank profitability is positively influenced by the regional GDP growth rate. Loan is a negative and significant determinant of bank profitability. It is concluded that, under the super-low interest policy, regional banks give weight to support the recovery of local economy (the long-term benefit by stable local economy), prior to the increase of loan (the short-term benefit by interest income).

Item Type:	Conference contribution
Creators:	Nguyen, T. and Minegishi, S.
Date:	October 2022
Identifiers:	Number Type 1761499 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Linda Sullivan
Date Added:	17 May 2023 07:52
Last Modified:	17 May 2023 07:52
Related URLs:	Organisation
URI:	https://irep.ntu.ac.uk/id/eprint/48991

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