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This chapter surveys papers and the related literature on the relationship between banks’ creditor structure and bank risk during the period of liquidity crises. Departing from the conventional banking literature, which points to deteriorating asset quality to be the culprit for the amplified bank risk in the midst of financial crises, the studies in the aftermath of the global financial crisis look into the liability side of the bank balance sheet as a potential source for the augmented bank risk during the financial crisis when there is a liquidity contraction. Recent studies theorize and provide empirical evidence that banking institutions with a greater share of large lenders and an economy with high noncore bank liabilities in the banking sector may experience heightened bank risk or country risk. We also search for policy implications from this survey.

Korean organizations’ attempts to transplant home management practices directly to their overseas operations have not been received positively by foreign staff; the application of hierarchical Confucianist management principles has led to high reliance on expatriates in Korean overseas operations and failed integration with both local staff and local markets in host country. In this conceptual chapter, we examine the significance of strong informal social ties (based on the unique social psychology of jeong, woori and nunchi) as cultural control in the Korean workplace and develop this as a novel explanation for Korean management discomfort in overseas settings. Promotion of weak social ties with local staff is suggested as more appropriate for achieving goals of exploring local expertise and knowledge.