The 1998 passage of the Land Revaluation Law in Japan provided regulatory forbearance to the Japanese banks in the form of a regulatory capital infusion. We test whether this divergence from international bank capital requirements had an impact on Japanese bank lending behavior. Because this...

In this paper, we utilize a hand gathered, bank specific database covering the period 1993 to 2007 to empirically examine the reactions of individual Japanese banks to governmental policies designed to end Japan's financial crisis. Our unique database allows us to examine the composition of...