An empirical analysis of the factors affecting bank crises in Japan : learning points for Bangladesh

This paper analyzes the factors that affect bank crises in Japan. There are numerous factors, qualitative and quantitative, identified from the analysis. For the quantitative analysis, the study employs the factor analysis, which detects three major components of factors that affect banking or financial crises in Japan. These are (i) common macro factors; (ii) bank sensitive micro factors; and (iii) household spending related factors. There are other factors, for example, policy dilemma, delayed or faulty deregulation measures and weak banking activities, which are not extracted from the factor analysis but adversely affect bank crises in Japan and hence discussed in details. The paper indicates some policy implications for the banking/financial sector of Bangladesh.