Strategic Management

Wilbert O. Bascom
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Wilbert O. Bascom: First Equity Corporation

Chapter 2 in Bank Management and Supervision in Developing Financial Markets, 1997, pp 16-35 from Palgrave Macmillan

Abstract: Abstract Developing financial markets are more competitive and complex than the repressed markets they replaced. Commercial banks in repressed financial markets fund their activities mainly with deposits that invariably carry fixed nominal, and negative real interest rates. They use these funds to finance government directed credits or a selection of traditional activities at lending rates that tend to be higher than the inflation rate.1 Banks in repressed financial markets, therefore, have been among the most profitable in the world. With financial liberalization, banks are faced with increasing competition as other intermediaries replicate their profit centres and introduce new and more attractive products and services. As the competition intensifies, banks have tended to increase their tolerance for risk as reflected by a lower quality of borrowers, and an expansion in unfamiliar activities.

Keywords: Financial Market; Strategic Management; Chief Executive Officer; Credit Union; Financial Planning (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37239-9_2

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DOI: 10.1057/9780230372399_2

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