Chapter

Explicit Reasons for Implicit Contracts: The Legal Logic to the Japanese Main Bank System

J. Mark Ramseyer

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/10.1093/0198288999.003.0007
 Explicit Reasons for Implicit Contracts: The Legal Logic to the Japanese Main Bank System

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The Japanese main bank system is characterized by a nexus of implicit contracts. This chapter examines whether such unspoken agreements are really made, based on a comparison of Japanese and American banking systems. It is argued that if banks and firms want the arrangements stipulated by implicit contracts, then these should have been negotiated explicitly, and laid down in court-enforceable agreements. The fact that firms do not draft such agreements may indicate that they did not make them at all.

Keywords: Japanese main bank system; American banks; implicit contracts; explicit contract; legal regime; claims

Chapter.  12074 words. 

Subjects: Financial Markets

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