IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04140759.html
   My bibliography  Save this paper

The Rational of Private Bank Note Issuance The Enskilda Banks in the Economic and Financial Development of Nineteenth Century Sweden

Author

Listed:
  • Anders Ögren

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

First established during the 1830's, the Enskilda banks were characterized by unlimited liability and the right to issue bank notes. In Swedish banking history, these banks have been considered to be primitive relics. This paper utilizes new data to revise this picture. Issuing notes based on an anchor provided by the National bank, the Enskilda banks made an important contribution to the development of liquid capital markets and for economic growth. The note issuance was also of importance to overcome shortages of liquidity due to both seasonal and regional variations in demand. In view of the crucial role of the Enskilda banks, the Banking Act of 1864, which permitted freer establishment and automatic prolongation of the charters for such banks, must be judged to have been an important institutional change.

Suggested Citation

  • Anders Ögren, 2008. "The Rational of Private Bank Note Issuance The Enskilda Banks in the Economic and Financial Development of Nineteenth Century Sweden," Working Papers hal-04140759, HAL.
  • Handle: RePEc:hal:wpaper:hal-04140759
    Note: View the original document on HAL open archive server: https://hal.science/hal-04140759
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04140759/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rousseau, Peter L. & Sylla, Richard, 2005. "Emerging financial markets and early US growth," Explorations in Economic History, Elsevier, vol. 42(1), pages 1-26, January.
    2. Diamond, Douglas W, 1997. "Liquidity, Banks, and Markets," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 928-956, October.
    3. Sandberg, Lars G., 1979. "The Case of the Impoverished Sophisticate: Human Capital and Swedish Economic Growth before World War I," The Journal of Economic History, Cambridge University Press, vol. 39(1), pages 225-241, March.
    4. Sandberg, Lars G., 1978. "Banking and Economic Growth in Sweden before World War I," The Journal of Economic History, Cambridge University Press, vol. 38(3), pages 650-680, September.
    5. Fisher, Douglas & Thurman, Walter N., 1989. "Sweden's Financial Sophistication in the Nineteenth Century: An Appraisal," The Journal of Economic History, Cambridge University Press, vol. 49(3), pages 621-634, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rousseau, Peter L. & Sylla, Richard, 2006. "Financial revolutions and economic growth: Introducing this EEH symposium," Explorations in Economic History, Elsevier, vol. 43(1), pages 1-12, January.
    2. Ogren, Anders, 2006. "Free or central banking? Liquidity and financial deepening in Sweden, 1834-1913," Explorations in Economic History, Elsevier, vol. 43(1), pages 64-93, January.
    3. Rui Manuel Pereira, Alfredo Marvao Pereira and William J. Hausman, 2017. "Railroad Infrastructure Investments and Economic Development in the Antebellum United States," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(3), pages 1-16, September.
    4. Michiel Bijlsma & Wouter Elsenburg & Michiel van Leuvensteijn, 2010. "Four Futures for Finance; A scenario study," CPB Document 211.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Andrianova, Svetlana & Demetriades, Panicos & Xu, Chenggang, 2011. "Political Economy Origins of Financial Markets in Europe and Asia," World Development, Elsevier, vol. 39(5), pages 686-699, May.
    6. Mitchener, Kris James & Wheelock, David C., 2013. "Does the structure of banking markets affect economic growth? Evidence from U.S. state banking markets," Explorations in Economic History, Elsevier, vol. 50(2), pages 161-178.
    7. Howard Bodenhorn, 2016. "Two Centuries of Finance and Growth in the United States, 1790-1980," Working Papers id:11352, eSocialSciences.
    8. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 531-596.
    9. Marco Pagano, 2013. "Finance: Economic Lifeblood or Toxin?," World Scientific Book Chapters, in: Viral V Acharya & Thorsten Beck & Douglas D Evanoff & George G Kaufman & Richard Portes (ed.), The Social Value of the Financial Sector Too Big to Fail or Just Too Big?, chapter 8, pages 109-146, World Scientific Publishing Co. Pte. Ltd..
    10. Eriksson, Katherine & Alsan, Marcella & Niemesh, Gregory T., 2020. "Understanding the Success of the Know-Nothing Party," CEPR Discussion Papers 15562, C.E.P.R. Discussion Papers.
    11. Viral V. Acharya & Alberto Bisin, 2005. "Optimal Financial-Market Integration and Security Design," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2397-2434, November.
    12. Eichengreen, Barry & Flandreau, Marc & Mehl, Arnaud & Chitu, Livia, 2017. "International Currencies Past, Present, and Future: Two Views from Economic History," OUP Catalogue, Oxford University Press, number 9780190659455.
    13. Polyzos, Stathis & Samitas, Aristeidis & Kampouris, Ilias, 2021. "Economic stimulus through bank regulation: Government responses to the COVID-19 crisis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    14. Martin Fischer & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2020. "The Long-Term Effects of Long Terms – Compulsory Schooling Reforms in Sweden," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 2776-2823.
    15. Zhang, Yu, 2017. "Asset price risk, banks and markets," Finance Research Letters, Elsevier, vol. 21(C), pages 21-25.
    16. Ralph Hippe & Joerg Baten, 2011. "Regional Inequality in Human Capital Formation in Europe, 1790 - 1880," Working Papers 11-07, Association Française de Cliométrie (AFC).
    17. Ari Kokko, 2010. "The Swedish Model," WIDER Working Paper Series wp-2010-088, World Institute for Development Economic Research (UNU-WIDER).
    18. Uluc Aysun, 2012. "Capital Flows, Maturity Mismatches, and Profitability in Emerging Markets: Evidence From Bank Level Data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(1), pages 211-239, January-J.
    19. Fecht, Falko & Eder, Armin & Pausch, Thilo, 2013. "Banks, Markets, and Financial Stability," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79712, Verein für Socialpolitik / German Economic Association.
    20. Zhiguo He & Arvind Krishnamurthy, 2013. "Intermediary Asset Pricing," American Economic Review, American Economic Association, vol. 103(2), pages 732-770, April.

    More about this item

    Keywords

    [No keyword available];

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-04140759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.