This study examines the effectiveness of bank recapitalization policies in Japan. Based on a reading of the "business … Japan: (1) to increase the bank capital ratios; (2) to increase write-offs of non-performing loans; (3) to increase lending … a panel of individual bank data, we empirically estimate the effectiveness of the Japanese government policy of public …

resolve the problem of information asymmetry. However, after controlling for bank capital, the valuation effects for banks … correlation between Nonperforming Loans (NPLs) and valuation effects. This indicates that an increase in the uncertainty of bank …