Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings
Using a simultaneous equation model initially developed by Shrieves and Dahl this article shows that Japanese banks in comparison to European banks, have focused on factors other than those that impact on bank safety levels. This has left Japanese banks in a vulnerable position with respect to level...
| Main Authors: | , , , |
|---|---|
| Format: | Journal Article |
| Published: |
Routledge Taylor and Francis Group
2004
|
| Online Access: | http://hdl.handle.net/20.500.11937/24568 |
| _version_ | 1848751467376148480 |
|---|---|
| author | Evans, J. Simpson, John Mahate, A. Evans, Robert |
| author_facet | Evans, J. Simpson, John Mahate, A. Evans, Robert |
| author_sort | Evans, J. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Using a simultaneous equation model initially developed by Shrieves and Dahl this article shows that Japanese banks in comparison to European banks, have focused on factors other than those that impact on bank safety levels. This has left Japanese banks in a vulnerable position with respect to levels of non-performing loans and indicates that less attention has been paid to prudent credit risk assessment and management practices. Recent events and actions initiated by the Japanese government suggests that Japanese banks are in crisis in terms of their dangerously large burden of non-performing loans. The broad objective of this study is to demonstrate that the attention of any healthy and safe banking system needs to be focused on operating and balance sheet fundamentals. Focus needs to be on maximization of earnings, determination of the appropriate level of financial risk, careful management of expenses and the optimisation of bank size in a deregulated, competitive environment where prudent lending criteria are applied. |
| first_indexed | 2025-11-14T07:53:11Z |
| format | Journal Article |
| id | curtin-20.500.11937-24568 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:53:11Z |
| publishDate | 2004 |
| publisher | Routledge Taylor and Francis Group |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-245682017-09-13T15:53:17Z Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings Evans, J. Simpson, John Mahate, A. Evans, Robert Using a simultaneous equation model initially developed by Shrieves and Dahl this article shows that Japanese banks in comparison to European banks, have focused on factors other than those that impact on bank safety levels. This has left Japanese banks in a vulnerable position with respect to levels of non-performing loans and indicates that less attention has been paid to prudent credit risk assessment and management practices. Recent events and actions initiated by the Japanese government suggests that Japanese banks are in crisis in terms of their dangerously large burden of non-performing loans. The broad objective of this study is to demonstrate that the attention of any healthy and safe banking system needs to be focused on operating and balance sheet fundamentals. Focus needs to be on maximization of earnings, determination of the appropriate level of financial risk, careful management of expenses and the optimisation of bank size in a deregulated, competitive environment where prudent lending criteria are applied. 2004 Journal Article http://hdl.handle.net/20.500.11937/24568 10.1080/0960310042000233890 Routledge Taylor and Francis Group restricted |
| spellingShingle | Evans, J. Simpson, John Mahate, A. Evans, Robert Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title | Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title_full | Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title_fullStr | Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title_full_unstemmed | Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title_short | Impact of operating and balance sheet performance of Japanese international banks on bank safety levels and risk ratings |
| title_sort | impact of operating and balance sheet performance of japanese international banks on bank safety levels and risk ratings |
| url | http://hdl.handle.net/20.500.11937/24568 |