ABSTRACT
A two-tier structure in Pacific financial services is likely. The first tier will have a strongly centralized market based on corporate and institutional clients. The second tier will be decentralized, focusing on smaller national firms and the retail market. Non-financial MNE’s can enter the financial services industry and be more pro-active suppliers to and consumers in financial markets. The impact of financial interdependence on non-financial MNEs can be analyzed from three aspects—MNEs as entrants to the financial services industry, as suppliers, and as consumers in the global market. With the emergence of Tokyo and the increasing importance of Japanese banks and securities houses, North America and Europe have faced a challenge that extends beyond the manufacturing sector to financial services. With continued deregulation around the world, many Asia-Pacific financial markets have become more open. State policy has often initiated and guided the process of financial reform, though the role of the state has differed markedly across countries.
