Has Competition in the Japanese Banking Sector Improved?



Figure 4. Estimates of θt for city banks, with rd in eq. (8) being the cost of capital

es — estimates

И 95% upper

—⅛—95% lower

—И—1/n

Note: MVR estimates of θt for city banks are shown with their 95% confidence interval. While rd in eq. (8) is the deposit interest rate in Figures
2 and 3, the cost of capital is used for the data of
rd in the estimation of this Figure.

32



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