Special Financial System in Asian Business Systems

By | February 27, 2013

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Special Financial System in Asian Business Systems

In term of economy, Asian business system has its own special financial system, let us take the CFB as an example, many large CFBs are also holding such conservative financial ideas, we can see this from the phenomenon that many large CFBs still do not plan to raise fund from the capital market like being listed companies in the stock markets. Most CFBs tend to be conservative in their business practices as stability is much more preferred than great fortune making by risk taking. In term of financial resources, they will usually store a lot of cash and other cash equal capital to prepare for any emergency needs. So mortgage loan is not liked by many CFBs or we may say it is not necessary in most time to turn to the bank as they have other alternatives. If there should be any major fund raising in the CFBs, there are several way to achieve it. Firstly, borrowing money from the family members and relatives, if this can work, it could be the first choice in many cases, and if necessary the sale of property will happen within the family to raise fund. Secondly, close friends and partners could also provide such help as well.

 

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