This chapter presents a conceptual framework in order to explain the evolutionary processes and social-cultural backdrop that help foster ethnic relations and the subsequent interstitial functional economic networks that culminate in the formation and strengthening of local banks vis-a-vis foreign banks. It traces the development process and the social, political and economic forces that have led to the formation of local Chinese banks. The chapter argues that the emergence of these banks is very much related to the compelling needs of the local and regional sectors for the exchange of goods and services, opportunities provided by the colonial government and the ability to canvass support from local communities and government. The Singapore Chinese built up their financial resources by accumulating profits from their estates in British Malaya. In the strategic economic plan, the financial sector was one of the key clusters recommended by the economic planning committee to spearhead the growth and development of the city-state in the twenty-first century.