Title: Market structure and competitiveness of Credit Associations and Credit Cooperatives in Japan

Authors: Shinya Minegishi

Addresses: The Institute for Economic Studies, Seijo University, 6-1-20 Seijo, Setagaya, Tokyo 157-8511, Japan

Abstract: This paper investigates how the consolidation process has affected the market structure and the degree of competition within Credit Associations (CA) and Credit Cooperatives (CC) in Japan. From the estimated results, I tentatively find they operate in an environment without collusive behaviour. The magnitudes of competitiveness by H-statistics suggest mutual financial institutions do not necessarily make decisions only for their own benefit but also consider the social welfare in their community. These results represent the geographical restriction to mutual financial institutions affects to the competitiveness, but the other factors such as good corporate governance relate to the market structure.

Keywords: market efficiency; H-statistics; Japan; credit associations; credit cooperatives; consolidation; market structure; competition; social welfare; mutual financial institutions; mutuals; corporate governance; competitiveness.

DOI: 10.1504/IJMEF.2012.049046

International Journal of Monetary Economics and Finance, 2012 Vol.5 No.3, pp.223 - 243

Received: 14 May 2011
Accepted: 15 Jun 2011
Published online: 11 Sep 2012 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article