This is an academic book that explains in reahty, examines
theoretically, and analyzes statistically information system investment
in the banking industry with regard to the process of the information
technology revolution. This kind of comprehensive research on the
banking industry is the first in the world. It could be seen as an
application study for Japanese financial deregulation after 1997.
However, our project, the Workshop of Information System Investment, is
a theoretical research venture, consisting originally, when it began in
1994, of economists and computer scientists. It aimed to measure the
effect of com- puter hardware and software on the modern economy, based
on the microdata of each firm, and to extend the frontiers of economic
science. It was, coin- dentally, the time when this project began
full-scale operation, in July 1997, that the voluntary closure of
Yamaichi Securities was decided. The failure of the Hokkaido Takushoku
Bank was disclosed in November of the same year, and the breakdown,
temporary nationalization, buying out, and mergers of several banks
succeeded one another. Our research therefore suddenly got into the
social spotlight on the application stage. Part I is the first history
and strategic guidelines of information systems in the banking industry.
Part II summarizes the economic analyses of informa- tion system
investment in the United States, Europe, and Japan. These parts are
foundations for the statistical analyses in Part III.
