Interbank Networks In Pre-war Japan: Structure And Implications
In this paper, the authors explored the structure and implications of interbank networks in pre-war Japan, focusing on director interlocking. It was found that approximately 60% of the banks had at least one connection with another bank through director interlocking. These connections resulted in the construction of complex networks of banks, not to be reduced to core-periphery structures. Based on this finding, the impact of the interbank networks on the financial performance and the survivability of banks were examined. It was revealed that while a bank with a network was not always more profitable compared to a bank without it, a bank which had a network with profitable banks was more profitable.