Historical Institutional Analysis of Ethnic Financial Institutions: A Study of the Chinese Banks in Sarawak

Authors

Tsung-Yuan CHEN, Graduate Institute of Development Studies, National Cheng Chi University of TaiwanFollow

Abstract

This paper examines the development of Chinese banks in Sarawak from the perspective of historical institutionalism, and explains its implications in terms of “ethnic economy” theory.
The Chinese banks in Sarawak are small and medium in size and mainly catering for the local Chinese business community. They are conservative family business concerns and adopt a policy of stable growth. As such, they are unable to cope with changes and requirements to withstand competition in the industry.
The study argues that the small size of Chinese banks in Sarawak and their difficulties in coping with competition have not allowed them to meet the needs of the emerging multinational business sector. In consequence, they are the targets of mergers and acquisitions under a policy directed by the government. This process and the resultant rigid banking rules and regulations have in turn raised problems for local Chinese businesses in their attempts to set up new ventures or to maintain existing ones.

Recommended Citation

CHEN, Tsung-Yuan (2013) "Historical Institutional Analysis of Ethnic Financial Institutions: A Study of the Chinese Banks in Sarawak," Malaysian Journal of Chinese Studies: Vol. 2: No. 1, Article 3.
Available at: https://mjcs.newera.edu.my/journal/vol2/iss1/3