Analysis of Management Behavior in the Japanese Banking Industry Using System Dynamics

Abstract

Measurement of Management behavior is a topic discussed in the field of Management. This paper presents the tendency of Managerial behavior in traditional Japanese banking sector and we focus on to the decision making on Fund management since it is the most important decision making in this industry. We also present how their behavior is anchored to their routine and negative behavior when they faced loss. The observation period measures for 20 years from 1997 to 2017 and we will show the 20 years trend of decision making using accessible data and a model created by using System Dynamics. We found the Managerial behavior on Fund management is conservative and avoiding risk instead of profit improvement for this observation period. Regarding to the interest rate for lending, it is not so linked to the policy rate though it is thought to be linked in general.