Long-Term Commitment, Trust and the Rise of Foreign Banking in China, by Lu
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- ISBN: 9781843343219 | 1843343215
- Cover: Hardcover
- Copyright: 9/30/2007
The rapid growth of foreign banks has aroused a growing interest in the academic field and specifically as regards the question of why foreign banks exist. This book aims to establish the relationship between trust as contextual knowledge capital built between the Chinese government and foreign banks and foreign bank's knowledge capital and the relationship between the former and foreign banks; long-term commitment. By investigating the development strategy of foreign banks and by examining and explaining the importance of foreign bank's long-term commitment to their development, this book has demonstrated that foreign banks established branches in China not only to follow their home-country customers in order to retain their knowledge capital but also to gain market access. Trust as contextual knowledge capital built between foreign banks and the Chinese government could assist their knowledge capital retention and their market access strategy. Foreign bank's long-term commitment could help them to achieve this contextual knowledge capital. This book thus has major implications for the development strategy of foreign banks in a government-oriented economy with a controlled banking sector.