19 - An Analysis of Mergers Between Credit Associations and Credit Cooperatives in Japan

Abstract

This chapter presents an analysis of mergers between credit associations and credit cooperatives in Japan. Of the number of mergers among different types of financial institutions, there have been 16 mergers between credit associations and credit cooperatives, 21 mergers between mutual banks and credit cooperatives, four mergers between ordinary banks and mutual banks, two between mutual banks and credit associations, and only one between an ordinary bank and a credit cooperative for the period between 1968 and 1990 in Japan. The performance of mergers between different types of financial institutions in Japan has never been investigated quantitatively. The chapter examines as to whether the performance of mergers is positive or not and whether financial differences between merging financial institutions and non-merging financial institutions exist or not. Data used for the performance comparison of mergers between credit associations and credit cooperatives are also described in the chapter.