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U.S. and U.K. competitors. This so-called "Japan premium" provides a market indicator of investor anxiety about the … ability of Japanese banks to repay loans. We examine the determinants of the Japan premium and find that events indicating … concrete actions by the Japanese government reduced the Japan premium. We find that the failure of Yamaichi Securities, which …
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Foreign penetration of U.S. wholesale banking already exceeds that of most other industry groups; unless market capitalization ratios for U.S. banks go up—or down for foreign banks—this trend is likely to continue.
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