Marketing derivatives: a question of trust

Relationship banking, a marketing strategy which could have been a key player in financial development, turned out to be a failure as a result of the so called 'derivatives disaster' in the early 1990s. Trust relationship, a concept through which relationship banking revolves, suffered much from unethical marketing practices during 1994-1995. Consequently, customers have not taken derivative recommendations offered by banks. However, recent developments are undertaken to reestablish the stature of relationship banking.