Do We Really Need Restrictions on Bank Ownership? (Written in Korean)
The often raised arguments against allowing Chaebol's ownership of banks, that is, 1) the banks may virtually be transformed into private cash vaults of owners, and 2) conflicts of interests may develop and be possibly abused by chaebols, do not hold under ordinary free market circumstances. On...
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| Format: | Article |
| Language: | English |
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Korea Development Institute
2001-12-01
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| Series: | KDI Journal of Economic Policy |
| Online Access: | https://doi.org/10.23895/kdijep.2001.23.1-2.7 |
| Summary: | The often raised arguments against allowing Chaebol's ownership of banks, that is, 1) the banks may virtually be transformed into private cash vaults of owners, and 2) conflicts of interests may develop and be possibly abused by chaebols, do not hold under ordinary free market circumstances. Only under some special circumstances in which government imposes artificial regulations on banks such as interest rate ceilings, or provides preferential protection like guaranteeing bank's liabilities, the aforementioned worries can be materialized. |
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| ISSN: | 2586-2995 2586-4130 |