Banking Alliances

by Johnson, Hazel J.

• ISBN13: 9789810242725
• ISBN10: 9810242727
• Format: Hardcover
• Copyright: 2000-04-01
• Publisher: WORLD SCIENTIFIC PUB CO INC

Summary

This book analyzes the extent to which banks and industry have worked together to promote economic growth. The countries examined are the United States, the United Kingdom, Germany, Japan, China, Hong Kong, and Korea. This is an important analysis, because so many developing countries have undertaken market-oriented plans for development. There are important lessons of dedicated capital that can be learned from these experiences. Furthermore, as financial systems are modernized, the financial services industry plays a critical role in economic development.

Table of Contents

Preface	vii
Origins of Banking Alliances	1	(54)
Introduction	1	(1)
A Contemporary Overview	2	(3)
The Earliest Days of Banking	5	(3)
The 18th Century	8	(4)
The Birth of the Baring Brothers	8	(1)
The Rothschilds	9	(3)
The 19th Century	12	(39)
English Bankers--Financiers to the World	13	(5)
The Emergence of Strong German Banking	18	(6)
Chinese Bankers and the Western World	24	(4)
Japanese Banking--A Rapid Transformation	28	(6)
The Ascendancy of U.S. Banking	34	(17)
Conclusion	51	(1)
Selected References	52	(3)
International Leadership in the United Kingdom	55	(28)
Introduction	55	(3)
Clearing vs. Merchant Banks	56	(2)
An Archaic System in a World Class City	58	(1)
The Reform Movement	59	(4)
Privatizing Major Industries	60	(1)
Scrutinizing the Financial Sector	61	(2)
The Eurodollar Markets	63	(7)
The Monetary Goals of the European Union	63	(3)
The United Kingdom and Monetary Union	66	(1)
The Off-Shore Market in U.S. Dollars	66	(4)
Deregulation and the Big Bang	70	(4)
Early Liberalization	70	(2)
The Big Bang	72	(2)
Important Lessons	74	(4)
Merging Different Cultures	74	(1)
Managing Branch Networks	75	(1)
Capital vs. Skill	75	(1)
Adequate Supervison: The Case of Barings	76	(2)
The New Financial Services Authority and Future Directions	78	(1)
Future Indications	79	(2)
Selected References	81	(2)
Dedicated Capital in Germany	83	(20)
Introduction	83	(1)
Setting the Stage for Economic Development	83	(4)
A Post War Economic Miracle	87	(9)
Reforming the System After the War	87	(2)
Insights into the German Company	89	(2)
Two Forms of Development	91	(5)
The Growth of Universal Banking in the German Economy	96	(3)
Conclusion	99	(1)
Selected References	100	(3)
Formal and Informal Ties in Japan	103	(26)
Introduction	103	(1)
Early Modernization	104	(2)
Breaking Up the Zaibatsu	106	(2)
Reestablishing Powerful Alliances	108	(1)
The High Growth Years	109	(5)
The Income Doubling Plan	110	(1)
The New Keiretsu	111	(2)
Coordination of Government, Industry, and Banking	113	(1)
International Expansion	114	(7)
Japan: The Control Center	116	(1)
Expanding Into the United States	117	(4)
Penetrating the Keiretsu	121	(3)
Reforming the Financial System of Japan?	124	(2)
Conclusion	126	(1)
Selected References	127	(2)
Forging Banking Alliances in China, Hong Kong, and Korea	129	(24)
Introduction	129	(1)
China: Breaking Economic Ties with the Past	130	(7)
Transition to the People's Republic of China	130	(1)
The Socialist Banking System	131	(2)
Economic Reform	133	(2)
Support from the Banking Sector	135	(2)
Hong Kong Industry and Banking	137	(6)
Hong Kong as an Industrial Center	138	(1)
The Hong Kong Trading Companies	139	(3)
Greater China	142	(1)
South Korea: Adapting the Japanese Model	143	(6)
The Economic Plan	143	(3)
The Chaebols	146	(3)
Conclusion	149	(1)
Selected References	150	(3)
Steps Toward Financial Modernization in the United States	153
Introduction	153
Misconceptions About the U.S. Banking Industry	155
The True Cause of Early U.S. Money Panics	155
The Great Depression: Facts and Myths	163
The Glass-Steagall Act	165
The Provisions of the Act	165
The Effects of Glass-Steagall	167
The Investment Shortfall	168
Aggregate Investment	168
Lack of Dedicated Capital	169
The American Banking Keiretsu	172
Selected References	176