Introduction: The Development of International Banking in Asia

To provide an understanding of financial globalisation from a historical viewpoint, this volume sheds light on international banking in Asia before the Second World War. International banking facilitated the relationship between Asian economic development and international financial centres. In this introductory chapter, Sect. 1 provides a summary of the history of intra-Asian trade. Section 2 conducts a literature review on the history of international banking. Section 3 reviews the chapters in this volume. Section 4 presents a historical perspective on the development of international banking in Asia derived from this volume. From the 1870s onward, intra-Asian trade grew faster than the trade of other regions or global trade. This provided plenty of opportunities for international banks in Asia. Until 1913, such banks were from industrialised nations such as the UK, France, Germany, and Japan. Although trade within Asia and the wide variety of nationalities of international banks providing trade finance in Asia were highly important, such finance heavily depended on pound sterling bills of exchange on London and the financial markets there. After the First World War, indigenous banks, especially from China, also started entry into international banking in Asia. However, British banks like HSBC kept their leadership in Asian international finance. This historical context is still reflected in current Asian international finance such as syndicated loans.