Direct finance in the Dutch Golden Age
| Authors |
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|---|---|
| Publication date | 2016 |
| Journal | Economic History Review |
| Volume | Issue number | 69 | 4 |
| Pages (from-to) | 1178-1198 |
| Number of pages | 21 |
| Organisations |
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| Abstract | This article analyses private credit operations in Amsterdam in the seventeenth century to explain the absence of deposit banks. The financial system was highly segmented and a combination of declining business margins and narrow interest rate spreads cut the scope for deposit taking. Moreover, merchants had easy access to credit in the form of short-term loans which could be easily rolled over, or replaced at will. This technique worked well because a market developed providing key functions to control risk and price loans accordingly. |
| Document type | Article |
| Language | English |
| Published at |
https://doi.org/10.1111/ehr.12285
(Final published version)
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