Document Type

Article

Publication Date

12-30-2022

Publication Title

Research in International Business and Finance

Volume

62

Pages

1-14

Publisher Name

Elsevier

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.

Comments

Author Posting. © Elsevier B.V., 2022. This is the author's version of the work. It is posted here by permission of Elsevier for personal use, not for redistribution. The definitive version was published in Research in International Business and Finance, VOL.62, (May 30, 2022), https://doi.org/10.1016/j.ribaf.2022.101686

Available for download on Tuesday, December 30, 2025

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