870 Part Ten Mergers, Corporate Control, and Governance
bre44380_ch33_867-886.indd 870 09/30/15 12:12 PM
Another interesting aspect of Figure 33.4 is the large amount of intercompany loans and
trade credit in Europe and Japan. Many Japanese firms rely heavily on trade-credit financing,
that is, on accounts payable to other firms. Of course the other firms see the reverse side of
trade credit: They are providing financing in the form of accounts receivable.
Figures 33.1 to 33.4 show that just drawing a line between market-based, “Anglo-Saxon”
financial systems and bank-based financial systems is simplistic. We need to dig a little deeper
when comparing financial systems. For example, more equity is held directly by households
in the United States than in the United Kingdom and the portfolio allocations of households,◗ FIGURE 33.3
Financial institutions’ portfolio allocations,
1995–2012, percentage of GDP.
Sources: Bank of Japan, EUROSTAT, Federal Reserve Board, and
the U.K. Office for National Statistics. We are grateful to Michael
Chui for this figure.050100150200250300350PercentU.S. (397%) U.K. (879%) Euro area (418%) Japan (562%)Debt
Equity
Loans
Deposits
Other◗ FIGURE 33.4
Nonfinancial corporations’ portfolio allocations,
1995–2012, percentage of GDP.
Sources: Bank of Japan, EUROSTAT, Federal Reserve Board, and the
U.K. Office for National Statistics. We are grateful to Michael Chui for
this figure.010203040506070PercentU.S. (86%)U.K. (107%) Euro area (150%)Japan (157%)Equity
Loans and trade credit
Other
Banks