Dangerous Business Models: Bankers, Bureaucrats & Hong Kong's Economic Transformation, 1948-86
HKIMR Working Paper No. 8/2006
29 Pages Posted: 20 Aug 2007
Date Written: June 2006
This paper reviews the banking response to Hong Kong's industrial take-off in the 1950s and the transition to a service economy and regional financial centre in the 1970s. Adjustments to bank business models were frequently flawed, and bankers were prone to self-destructive behaviour. The paper examines how the Government contributed to this mismanagement and misconduct. It failed to match its regulatory policies to the changing economic environment, and it also misunderstood the monetary system. The analysis makes extensive use of previously unpublished data and government archives.
Keywords: Hong Kong, banking regulation, bureaucrats, rules, self-destructive
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