Banking Relationships in East Asian Economies: Lessons for Developing Countries

Sarwar Ahmed and Shigeru Uchida
Additional contact information
Shigeru Uchida: Faculty of Economics, Nagasaki University, Japan

Chapter 6 in Studies on Financial Markets in East Asia, 2011, pp 89-99 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis paper aims at examining the impact of relationship banking in East Asian economies and suggest lessons for developing countries especially, Bangladesh. In doing so, we have selected the case of Japan and Korea as representatives of East Asia. Accordingly, we have found that both Japan and Korea have positive impacts of relationship banking on firm profitability by ensuring easy access to credit and rescue during financial distress, which are achieved by the banks by firm shareholding and participation in firm management decision in addition to lending. But in Bangladesh relationship banking is mainly confined up to lending. Hence in order to maximize the benefits of relationship banking in the early stage of industrialization, equity shareholding and management advisory services provided by the banks should also be incorporated in relationship banking structure.

Keywords: Financial Market; Foreign Exchange Rate; Sub-prime Crisis; Real Estate Market; Relationship Banking; Dividend and Share; Stock Market; Government Bond; Hedging; IPO; Return; Volatility; Liquidity; Risk Attitude; Investment Behavior; Fund Managers (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814343374_0006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814343374_0006 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789814343374_0006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().