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The Japanese Main Bank Relationship: Governance or Competitive Strategy?

  • Mark J. Scher

Abstract

This article explores the nature of the main bank in its roles as the major creditor and lender of last resort to its clients within Japanese banking’s cultural, historical and institutional context, and in relation to governmental institutions that strive to foster economic development through the main bank system. In so doing it discloses some of the myriad formal and informal systems which the main bank uses to structure a profitable and lasting relationship with its client firms, the nature of the direct rewards sought by the banks, and how their needs are served by the main bank relationship.

Keywords

Corporate Governance Financial Institution Financial Distress Social Transformation Lending Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1997

Authors and Affiliations

  • Mark J. Scher

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