What are the determinants of the number of bank relations of Japanese firms?

We explore the determinants of the number of bank relations of listed Japanese firms in a unique data set covering 1982-1999. Japanese firms had about 7 long-term and 8 short-term bank loan relations on average. We present a statistical description of the bank relations in terms of size, financing structure, ownership, and firm activity. We analyze the determinants of the choice for the number of bank relations. Larger firms have a lower concentration of individual loan sets. Having a main bank relation also reduces the number of bank relations, while debt-rich and cash-poor firms have more bank relations.