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The Japanese Main Bank SystemIts Relevance for Developing and Transforming Economies$
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Masahiko Aoki and Hugh Patrick

Print publication date: 1995

Print ISBN-13: 9780198288992

Published to Oxford Scholarship Online: August 2004

DOI: 10.1093/0198288999.001.0001

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The Principal Transactions Bank System in Korea

The Principal Transactions Bank System in Korea

Chapter:
(p.450) 13 The Principal Transactions Bank System in Korea
Source:
The Japanese Main Bank System
Author(s):

Sang‐Woo Nam

Dong‐Won Kim

Publisher:
Oxford University Press
DOI:10.1093/0198288999.003.0013

This chapter examines the principal transactions bank system in Korea. The system resulted from government-led economic development, where banks simply carried out the credit allocation decisions of the government. The credit control system has been effective in controlling bank loans and the economic power of large business groups. However, credit control and principal transactions bank systems must change in response to continued economic development and the growing inefficiency of government intervention in economic affairs.

Keywords:   principal transactions bank system, credit control, loans, Korean banks, Japanese main banks

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