Impact of learning through credit and value creation on the efficiency of Japanese commercial banks

6Citations
Citations of this article
31Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

This study investigates the learning curve of commercial banks regarding the efficiency of credit and value creation. However, current empirical methods for accessing the learning curve in organizations are not suitable for use in financial institutions. Considering bank-specific characteristics, we introduce a dynamic learning curve using a cost function adjusted to capture learning-by-doing in banks. Using the model, we test several hypotheses on the impact of bank intermediary experience (learning) on the efficiency of credit and value creation in Japanese commercial banks. The findings show that bank intermediary learning significantly improves the cost efficiency gain in the gross value created, total credit created, and investment. However, bank intermediary experience has no significant effect on the efficiency of the economic value created for all the banks analyzed. These findings have practical implications for evaluating cost dynamics in bank credit and value creation, risk management, lending to the real sector, and shareholder value creation.

Cite

CITATION STYLE

APA

Aduba, J., & Izawa, H. (2021). Impact of learning through credit and value creation on the efficiency of Japanese commercial banks. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00268-8

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free