Recently, Japanese commercial banks have been expanding their fee-based business. The present study conducts a panel-data analysis to investigate the impact of such a diversification of commercial banking on the variability of banks' profitability and the stability of their management. Our...

Closer relationships are now being observed between the uncollateralized call rate, which is heavily influenced by the Bank of Japan's money market operations, and the Euroyen rate and the yen funding rate in the dollar/yen swap market, reflecting more dynamic arbitrage operations by...