Chapter

The Role of Long‐Term Credit Banks Within the Main Bank System

Frank Packer

in The Japanese Main Bank System

Published in print February 1995 | ISBN: 9780198288992
Published online August 2004 | e-ISBN: 9780191601224 | DOI: http://dx.doi.org/10.1093/0198288999.003.0005
 The Role of Long‐Term Credit Banks Within the Main Bank System

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This chapter examines Japanese long-term credit banks, a special class of banks which do not rely on individual deposits as a principal source of financing. While the regulatory regime has allowed long-term credit banks to act as main banks to corporations when necessary, the use and exclusivity of the privilege of issuing financial debentures has assured them of a pre-eminent role in long-term finance. This has allowed long-term credit banks to limit the risks assumed by keiretsu banks in cooperative financing, and act as main banks themselves for a large number of companies.

Keywords: long-term credit banks; corporate financing; Japan; financial debentures; cooperative financing; main bank

Chapter.  18409 words.  Illustrated.

Subjects: Financial Markets

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