This paper investigates movements of market indicators of banking fragility, namely, Japan premium, stock prices, and … credit derivative spreads of Japanese banks. Although the Japan premium in the euro-dollar market seemed to have virtually … indicators were high both in the first period and in the second period; Credit default swap (CDS) premium explains Japan premium …

market. Two indicators, the Japan premium and the stock price index of the banking sector in Tokyo, were examined … Japan Premium most were the Daiwa Bank incidence in the fall of 1995, failures of large financial institutions in November …-movement relationship at around the summer of 1995. (5) News that affected Japan premium and bank stocks are sometimes different. The bank …