@article{oai:nagasaki-u.repo.nii.ac.jp:00023561, author = {Ahmed, Sarwar Uddin and Uchida, Shigeru}, journal = {長崎大学経済学部研究年報}, month = {Mar}, note = {This paper reviews the background and current status of relationship banking in Japan. First, the composition and share of the banking sector in the total financial market are discussed along with the measures taken in the banking sector after the burst of the bubble economy. Second, relationship banking is defined with its merits and demerits. Third, the nature of relationship banking in Japan is argued. Finally, the effects of relationship banking are examined. The evidence from various theoretical and empirical studies has indicated that relationship banking reduces information asymmetry and risk, mitigates liquidity constraints and contributes as rescues in financial distress. However these benefits are often obtained by the firms at the cost of higher rents through higher lending interest rates., 長崎大学経済学部研究年報. vol.21, p.49-59; 2005}, pages = {49--59}, title = {Contemporary Strategic Aspects of Relationship Banking in Japan}, volume = {21}, year = {2005} }