IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v62y2022ics0275531922000745.html
   My bibliography  Save this article

Ethical compatibility of socially responsible banking: Comparing the Japanese main bank system with the USA

Author

Listed:
  • Kitamura, Kanji

Abstract

Although the broad idea of socially responsible banking is widely accepted, no precise definition of ethical banking is available because of various ethical preferences. This paper develops the concept of ethical compatibility as a theoretical description of ethical banking. It offers a multi-level framework to illustrate the compatibility between the regional ethics and preferred forms of ethical banking prevalent in Japan and the USA. This paper first revisits the two paradigms of financial systems and examines the two types of business purposes as ethics. Drawing on the literature concepts, this study posits a conceptual framework demonstrating the compatibility between the actors, which are dynamic yet representative at each level. This paper concludes that the ethically compatible form of banking is socially responsible in the respective societies. Additionally, this paper advances the concept of relationship lending by making it globally applicable.

Suggested Citation

  • Kitamura, Kanji, 2022. "Ethical compatibility of socially responsible banking: Comparing the Japanese main bank system with the USA," Research in International Business and Finance, Elsevier, vol. 62(C).
  • Handle: RePEc:eee:riibaf:v:62:y:2022:i:c:s0275531922000745
    DOI: 10.1016/j.ribaf.2022.101686
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531922000745
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ribaf.2022.101686?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Berger, Allen N. & Udell, Gregory F., 2006. "A more complete conceptual framework for SME finance," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2945-2966, November.
    2. Marlene Karl, 2015. "Are Ethical and Social Banks Less Risky? Evidence from a New Dataset. WWWforEurope Working Paper No. 96," WIFO Studies, WIFO, number 58138.
    3. Toya, Tetsuro, 2006. "The Political Economy of the Japanese Financial Big Bang: Institutional Change in Finance and Public Policymaking," OUP Catalogue, Oxford University Press, number 9780199292394 edited by Amyx, Jennifer A., Decembrie.
    4. Boon Cheong Chew & Lay Hong Tan & Syaiful Rizal Hamid, 2016. "Ethical banking in practice: a closer look at the Co-operative Bank UK PLC," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 8(1), pages 70-91, February.
    5. Illiashenko, Pavlo & Laidroo, Laivi, 2020. "National culture and bank risk-taking: Contradictory case of individualism," Research in International Business and Finance, Elsevier, vol. 51(C).
    6. Hoshi, Takeo & Kashyap, Anil & Scharfstein, David, 1990. "The role of banks in reducing the costs of financial distress in Japan," Journal of Financial Economics, Elsevier, vol. 27(1), pages 67-88, September.
    7. Bert Scholtens, 2009. "Corporate Social Responsibility in the International Banking Industry," Journal of Business Ethics, Springer, vol. 86(2), pages 159-175, May.
    8. Hassan, M. Kabir & Girard, Eric, 2010. "Faith-Based Ethical Investing: The Case Of Dow Jones Islamic Indexes," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 17, pages 1-31.
    9. Johannes C. Buggle, 2020. "Growing collectivism: irrigation, group conformity and technological divergence," Journal of Economic Growth, Springer, vol. 25(2), pages 147-193, June.
    10. Kathleen Thelen, 2009. "Institutional Change in Advanced Political Economies," British Journal of Industrial Relations, London School of Economics, vol. 47(3), pages 471-498, September.
    11. repec:diw:diwwpp:dp1484 is not listed on IDEAS
    12. Learmount, Simon, 2002. "Corporate Governance: What Can Be Learned From Japan?," OUP Catalogue, Oxford University Press, number 9780199252916, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria & Paltrinieri, Andrea, 2024. "A PRISMA systematic review of greenwashing in the banking industry: A call for action," Research in International Business and Finance, Elsevier, vol. 69(C).
    2. Mihai Leța Florina, 2024. "Navigating the Moral Compass: Business Ethics in the Banking Sector," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 311-320.
    3. Ionuț Nica & Irina Georgescu & Camelia Delcea & Nora Chiriță, 2023. "Toward Sustainable Development: Assessing the Effects of Financial Contagion on Human Well-Being in Romania," Risks, MDPI, vol. 11(11), pages 1-32, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Climent, 2018. "Ethical Versus Conventional Banking: A Case Study," Sustainability, MDPI, vol. 10(7), pages 1-13, June.
    2. Luciana Barbosa, 2017. "Lending relationships and the real economy: evidence in the context of the euro area sovereign debt crisis," Working Papers w201708, Banco de Portugal, Economics and Research Department.
    3. Giacinto Micucci & Paola Rossi, 2017. "Debt Restructuring and the Role of Banks’ Organizational Structure and Lending Technologies," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(3), pages 339-361, June.
    4. Bartoli, Francesca & Ferri, Giovanni & Murro, Pierluigi & Rotondi, Zeno, 2013. "Bank–firm relations and the role of Mutual Guarantee Institutions at the peak of the crisis," Journal of Financial Stability, Elsevier, vol. 9(1), pages 90-104.
    5. repec:cfi:fseres:cf522 is not listed on IDEAS
    6. Zsuzsanna Győri & Yahya Khan & Krisztina Szegedi, 2021. "Business Model and Principles of a Values-Based Bank—Case Study of MagNet Hungarian Community Bank," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    7. repec:ris:msuecw:2020_006 is not listed on IDEAS
    8. Araujo, Luis & Minetti, Raoul & Murro, Pierluigi, 2021. "Relationship finance, informed liquidity, and monetary policy," Journal of Economic Theory, Elsevier, vol. 193(C).
    9. Hanley, Aoife & O'Donohoe, Sheila, 2009. "Relationship banking within the Irish SME sector and its implication," Kiel Working Papers 1553, Kiel Institute for the World Economy (IfW Kiel).
    10. D’Apolito, Elisabetta & Galletta, Simona & Iannuzzi, Antonia Patrizia & Labini, Stefania Sylos, 2024. "Sustainability and bank credit access: New evidence from Italian SMEs," Research in International Business and Finance, Elsevier, vol. 69(C).
    11. Chim M. Lau & Ulrike Schaede, 2020. "Of substitutes and complements: trade credit versus bank loans in Japan, 1980–2012," Review of Quantitative Finance and Accounting, Springer, vol. 55(1), pages 305-326, July.
    12. Djedidi-Kooli, Salima, 2009. "L’accès au financement des PME en France : quel rôle joué par la structure du système bancaire ?," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/8354 edited by Etner, François.
    13. Shimizu, Katsutoshi, 2012. "Bankruptcies of small firms and lending relationship," Journal of Banking & Finance, Elsevier, vol. 36(3), pages 857-870.
    14. Daisuke Tsuruta, 2020. "Can banks monitor small business borrowers effectively using hard information?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4291-4330, December.
    15. Giacinto Micucci & Paola Rossi, 2010. "Debt restructuring and the role of lending technologies," Temi di discussione (Economic working papers) 763, Bank of Italy, Economic Research and International Relations Area.
    16. Lu, Yao & Zhan, Shuwei & Zhan, Minghua, 2024. "Has FinTech changed the sensitivity of corporate investment to interest rates?—Evidence from China," Research in International Business and Finance, Elsevier, vol. 68(C).
    17. Masahiro Enomoto, 2018. "Effects of Corporate Governance on the Relationship between Accounting Quality and Trade Credit: Evidence from Japan," Discussion Paper Series DP2018-12, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2023.
    18. Beck, Thorsten & Demirgüç-Kunt, Asli & Singer, Dorothe, 2013. "Is Small Beautiful? Financial Structure, Size and Access to Finance," World Development, Elsevier, vol. 52(C), pages 19-33.
    19. Goergen, Marc & Renneboog, Luc & Correia da Silva, Luis, 2005. "When do German firms change their dividends?," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 375-399, March.
    20. Simon Cornée, 2014. "Soft Information and Default Prediction in Cooperative and Social Banks," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(1), pages 89-103, June.
    21. Song Zhang & Liang Han & Konstantinos Kallias & Antonios Kallias, 2021. "The value of in-person banking: evidence from U.S. small businesses," Review of Quantitative Finance and Accounting, Springer, vol. 57(4), pages 1393-1435, November.
    22. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1993. "The Choice Between Public and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan," NBER Working Papers 4421, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Collectivism; Compatibility; Coordinated market economy; Individualism; Liberal market economy; Relationship lending;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:62:y:2022:i:c:s0275531922000745. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.