This paper investigates the expense-preference behaviors of Japanese financial institutions. We found that financial institutions employing retired government officials as board members held more employees than those that did not. Thus, Amakudari likely produces the cozy relationship between regulators and the regulated.  1998 Elsevier Science S.A. All rights reserved.

Systemic risk, here meant as the risk of default of a large portion of the financial system, depends on the network of financial exposures among institutions. However, there is no widely accepted methodology to determine the systemically important nodes in a network. To fill this gap, we introduce, DebtRank, a novel measure of systemic impact inspired by feedback-centrality. As an application, ...

Many financial institutions are now realizing that information technology is enabling business, not just supporting it. For this reason, financial sectors are changing the way they operate to capitalize on this trend by conducting their day-to-day business operations, namely, business-to-business (B2B) and business-to-consumer (B2C) using online applications. The proliferation of e-business and...

This paper examines the potential efficiency effects of a single market for financial services in Europe. The topics covered include universal banking, the merger and acquisition process itself, cross-border ownership and management of financial institutions, and the effects of consolidation of financial institutions on the supply of relationship lending services to informationally opaque small...