Long-Term Commitment, Trust and the Rise of Foreign Banking in China
The rapid growth of foreign banks has aroused a growing interest in the academic field and specifically as regards to 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 banks. 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 banks. 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 banks. 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.The first book covering the relationship between the governments trust and support and the rise of foreign banks in ChinaFew studies have analysed the development of foreign banks from the standpoint of government, i.e. the supply side of the banking licence, and the relationship between the development of foreign banks and the trust built between foreign banks and the governmentThe first book showing how some big foreign banks in China, such as HSBC, built relationship with the Chinese government
