Entry,information, and financial development: A century of competition between French banks and notaries

Poorly developed financial markets are widely believed to block economic growth, because only modern financial intermediaries such as banks can mobilize large amounts of financial capital at low cost. This claim is supported by cross country regressions, but the regressions assume that credit intermediation is measured accurately before modern financial intermediaries arrive. If traditional intermediaries were mobilizing large amounts of financial capital before banks or other modern intermediaries appear, then the strength of the relationship between financial development and economic growth would be cast into doubt. Using an original panel dataset from nineteenth-century France, we provide the first estimates of how much financial capital key traditional intermediaries (notaries) were mobilizing for an entire economy during its first century of economic growth, and we analyze the lending that the notaries made possible in French mortgage market. The amount of capital they mobilized turns out to be large. We then analyze the effect that financial deepening had on the notaries as banks spread and find that the banks' and notaries' services were in all likelihood complements. The implication is that the link between financial development and economic growth may therefore be weaker than is assumed.     

Flight‐to‐safety and the credit crunch: a new history of the banking crises in France during the Great Depression†

Despite France's importance in the interwar world economy, the scale of the French banking crises of 1930–1 and their consequences have never been fully assessed quantitatively. The lack of banking regulation severely limited the availability of balance sheet data. Using a new dataset of individual balance sheets from more than 300 banks, this article shows that the crises were much more severe than previously thought, although they did not affect the main commercial banks. By reconstructing financial flows, this study shows that the fall in bank credit was mostly driven by a flight‐to‐safety by deposits, from banks to savings institutions and the central bank. The decrease in bank deposits due to bank runs was offset by an increase in deposits with savings institutions, with the central bank, and in cash hoarding, whereas the decrease in bank credit was not offset by an increase in loans from non‐bank financial institutions. In line with the gold standard mentality, cash deposited with savings institutions and the central bank was used to decrease marketable public debt and increase gold reserves, rather than pursuing countercyclical policies. Despite massive capital inflows and rising aggregate money supply, France suffered from a severe, persistent credit crunch.     

我国国有商业银行产融结合的制度约束与创新

本文选取我国国有商业银行为产融结合的研究对象,并且主要运用制度分析方法,从制度的角度来分析我国国有商业银行产融结合的内在制约因素,指出要着重进行我国国有商业银行的内部制度创新,从更深层次的体制层面,加快推进我国国有商业银行产融结合的进程。     

Financial System and Economic Growth: The Korean Experience

This paper examines the relationship between the development of financial systems and economic growth using Korea as a case study. In particular, we focus on the relative development of financial intermediaries and capital markets, and their impact on the portfolio behavior of the household and business sectors. Causality and non-nested model selection tests show that financial development in general leads economic growth and that financial intermediaries are more important than capital markets in this relationship.     

Kasgeld en kasbelegging

Summary A restrictive monetary policy in the Netherlands is virtually a policy to adapt the pace of domestic inflation to the pace of inflation abroad. This aim is pursued by limiting the growth of transactions balances in case of a balance of payments deficit. Although in such circumstances the government uses to take recourse to inflationary financing, credit rationing and the rise of interest rates cause investment expenditures to slow down.Transactions balances are, contrary to what Keynes assumed, not completely held in the form of money. Slow components are invested in short term claims, mainly time and savings deposits. In the recent period of credit restriction in the Netherlands short term lending between enterprises has also grown considerably.The present tightness of liquidity in the Netherlands caused the banks to extend the assortment of various kinds of deposits that can be held by their customers. Competition between all financial intermediaries sharpened considerably. The commercial banks were succesful in penetrating the market for savings deposits but they are lagging behind the giro-services and the circulation bank as far as the increase of their demand deposits is concerned.It is not correct, as Albert Hahn did, to consider commercial banks as pure money creating institutions. The amount of their deposits of various nature depends upon how households and firms choose to distribute their financial assets and to what extent the banks, in competition with the other financial intermediaries, can satisfy their wishes.Openbare les, gehouden bij het aanvaarden van het ambt van lector aan de Universiteit van Amsterdam op dinsdag 19 december 1967.     

科技创新金融支持体系的构建及作用机制——基于企业生命周期理论的视角

构建科技创新金融支持体系是解决科技企业不同生命周期融资困境的有效手段。本文从金融市场需求主体的特性和供给主体的作用两方面分析,认为政策性金融、金融中介、资本市场和风险投资是与企业生命周期相适应的金融供给部门,并在此基础上构建了科技创新金融支持体系,即在政府引导下,以银行中介为主,银行和金融市场并存,且相互融合渗透、相互依赖竞争的混合型科技创新金融支持体系。     

Development of financial intermediation and economic growth: The Chinese experience

Using Chinese provincial data from 1985 to 1999 and applying recent GMM techniques developed for dynamic panels, this paper examines how the development of financial intermediation influences China's economic growth during the post-1978 reform period. Our econometric results show that China's financial intermediation development contributes to its rapid economic growth through two channels: first, the substitution of loans for state budget appropriation and second, the mobilization of household savings. Loan expansion, however, does not contribute to growth since loan distribution by financial intermediaries is inefficient. Deep financial sector reform aimed at correcting this inefficiency is desirable, and is expected to sustain China's economic development in the future.     

Equity,Bonds, Institutional Debt and Economic Growth: Evidence from South Africa

We examine the finance‐growth nexus in South Africa accounting for the role of bond markets, stock markets, and bank and non‐bank financial intermediaries using a vector autoregressive technique. Extant empirical literature has largely accounted for only banks and stock markets, ignoring bond market and non‐bank financial intermediaries. We find that bond market development affects economic growth in South Africa, and no similar effect is observed for the bank and non‐bank financial intermediaries and the stock market. Our finding shows that examination of individual elements of the financial system is important in understanding the unique effect of each on growth. The observation that the bond market rather than stock market, bank and non‐bank institutions promote economic growth in South Africa induces an intriguing question as to what unique roles bond markets play that the intermediaries and equity market are unable to play.     

Capital Markets and Capital Formation in Australia, 1945–1990

This survey article continues the author's examination of the interaction between domestic capital markets and capital formation by studying the 45 years after the end of World War II. (Part 1 appeared in AEHR 37 (3) 1997.) The significant rise and the sustained increase in the ratio of gross domestic capital formation to gross domestic product (GDP) posed challenges to local deposit taking institutions and capital markets to mobilize savings. The changing balance between public and private investment, and between investment by businesses and households, was reflected in the relative importance of government and private debt, and equity. The capital markets and financial institutions proved themselves to be adaptable enough to finance more than 90 per cent of postwar capital formation. However, the increasing inward and outward flows of foreign direct investment have weakened the nexus between the supply of domestic savings and capital formation.     

Achieving greater financial independence for Latin America: A proposal

Financial intermediation development in Latin America illustrates the various ways in which the financial system may influence growth, efficiency, and welfare. Though the financial repression of earlier years has begun to be alleviated, much of the resulting growth of finance in Latin America has been concentrated within the countries or between them and the now-developed regions. Intraregional financial flows have been largely overlooked as an avenue for the increase of financial savings and of regional control over the mobilization and allocation of financial resources. This paper proposes the creation of new instruments designed to further the development of financial intermediation on a regional basis. A Latin American Development Bond programme is suggested which would increase the level of voluntary financial savings for regional development purposes and would reduce the present triangulation of credit flows through financial intermediaries outside of Latin America.     

金融发展与经济增长互动机制初探

针对金融发展理论与实证研究的分歧,引出金融发展的度量问题。本文将分歧的产生归因于两点:一是对金融发展的度量常常局限于对金融中介的度量,而忽视金融市场;二是有关金融发展指标没有考虑金融风险因素。进一步从金融生态的角度,探讨金融发展与经济增长的互动关系,建立了分析金融发展与经济增长相互关系的指标体系。     

Determinants of bond market development in Asia

One of the major reasons behind the Asian financial crisis in 1997 was the excessive dependence of the Asian economies on commercial banks for domestic financing. The region failed to diversify its sources of corporate financing as it relied mainly on banks since its other types of financing, namely bond markets, were still underdeveloped and their sizes were quite small. On the other hand, the 2008 global financial crisis and the ongoing European debt crisis have led to constraints in acquiring local currency and foreign currency liquidity in the corporate sector in Asia as foreign banks withdrew investments from Asia. Furthermore, Asia needs large long term capital (US$ 750 billion per year for 2010–2020) for developing infrastructure connectivity within and across its economies. Local and regional capital can be channeled for long-term infrastructure projects and other productive investment through bond markets. Having a well-developed local currency bond markets can enhance the resilience of domestic financial sector to external shocks and it can facilitate better intermediation of savings into productive investments in Asia. To enhance corporate bond financing, it is important to examine factors that affect the effective development of bond markets in Asia. The study attempts to identify the determinants of bond market development in Asian economies through examining the relationship of bond issuance with selected key financial and economic factors. It also intends to provide policy recommendations for the further development of the Asian bond market. Major determinants for bond market development in Asia include the size of an economy, the stage of economic development, the openness of an economy, the exchange rate variability, the size of the banking system, and interest rate variability.     

陕西省民间资本投资银行业的发展现状及未来趋势——丝绸之路经济带战略视角

丝绸之路经济带战略的提出,为陕西省金融的开放开展带来机遇与挑战。2014年国家银监会明确了国内民营银行试点方案,表明了中央层面推动民间资本进入银行业的决心。陕西省金融资源贫乏,金融效率偏低,资金供给与需求实践中严重不匹配。陕西省民间资本活跃,但是民间资本投资银行业的状况不容乐观,民营企业一直被融资难困扰。应强化金融开放发展理念,争取陕西省政策优先权;建设"民间金融街",促进陕西省民间金融的发展,培育发展民营银行;严格准入,统筹规划民营银行的数量和规模;加强监管,完善民营资本进入银行业配套机制建设;重视金融人才的引进和培养,打造专业团队。     

Resource mobilization in developing countries: Financial institutions and policies

Discussion in this paper of the areas and scope for domestic policy action aimed at improving the process of domestic resource mobilization, allocation and use is developed in several stages. First, the authors assess the progress made by LDCs in raising their rates of saving and investment over the past 25 years. Next, government policies — government tax expenditure and pricing policies, in particular — and their effect on public savings are discussed. This is followed by treatment of the issues of private saving performance and allocation, i.e. how to stimulate and make better use of household savings. Institutional and policy measures are suggested as means of promoting a more active role of the banking system. Brief reference is made to the role of development banks in project preparation and in tapping the capital market.     

Capital Markets and Capital Formation in Australia 1890–1945

This survey article examines the interaction between the domestic capital markets and capital formation in Australia from the 1890s up to the end of World War II. The disenchantment of the City of London with Australian securities in the 1890s opened a window for the development of domestic capital markets. It was the demands of the government for funds, especially during both wars, that transformed the scale and character of local markets. Local deposit taking institutions and stock exchanges handled a sufficient volume of domestic savings to fund the lion's share of both public and private sector capital formation.     

关于推动农村金融发展的研究

农村金融在农村经济发展中起着重要的作用,包括资金融通,提供金融服务,推动农村产业结构调整,促进农业的产业化经营等。基于此,本文从目前我国以中国农业银行、农业发展银行、农村信用社、农村邮政储蓄为代表的正规金融机构和以小额借贷、民间借贷为代表的非正规金融机构出发,针对其各自存在的问题以及由此导致的我国农村资金供不应求的现状,从完善农村金融体系、深化金融机构改革和提高农村金融服务质量、推进农村金融创新以及建立健全农村信用体系、加强农村金融监管等方面提出相应的对策建议。     

Capital requirement and financial crisis: The case of Japan and the 1997 Asian crisis

This study investigates the direct link between the implementation of the 1988 Basel capital requirement in Japan and the shrinkage of banks’ foreign assets, particularly in Thailand in the 1990s. The empirical analysis proceeds in two stages. The first stage investigates the hypothesis that the capital crunch in Japan induced Japanese banks to alter their portfolios and reduce their foreign assets. The second step tests the hypothesis that the change in behaviour of the Japanese banks induced the increase of the probability of financial crisis in Asia. Our results support the responsibility of the Japanese capital requirement, among other factors, in triggering the 1997 Asian financial crisis as an external common shock and give a new angle on the financial crisis literature.     

Spillovers of banking regulation: the effect of the German bank levy on the lending rates of regional banks and their local competitors

During the financial crisis numerous European governments decided to rescue domestic banks with public funds to prevent a collapse of the banking system. To internalize the public costs, bank levies have been introduced in many countries. This paper analyzes the German bank levy which was implemented from 2011 till 2014. We examine not only if banks shift the cost of the levy to their customers’ lending rates, but also whether there are spillovers to their local competitors. The German savings and cooperative banks are a perfect setting to study such effects as they only operate within well-defined regions, allowing us to identify their local competitors. Additionally, only some of them are subject to the levy due to a tax allowance. Firstly, we find that a bank that has to pay the bank levy raises its lending rate by about 0.14 percentage points. Secondly, we examine whether the increased lending rates of paying banks spill over to their local competitors. We find this indirect effect to be about one third of the size. Lastly, adverse effects of the levy on paying banks’ loan supply growth are absorbed by their competitors to a certain extent.     

Contingent capital and bank risk‐taking among British banks before the First World War1

The recent financial turmoil highlights the incentive of highly leveraged financial institutions to take excessive risk, given the protection of limited liability. During the nineteenth and early twentieth century, many banks operated under liability rules which obligated shareholders to bear larger costs of bank insolvency in the form of contingent, or even unlimited, liability. This article examines the empirical relationship between the size of banks' contingent liability and their risk‐taking behaviour using data on British banks from 1878 to 1912. We find that banks with more contingent liability appear to have taken less risk. We also find evidence that the risk‐reducing effects of contingent liability were larger for banks with higher leverage, suggesting that contingent capital mitigated the moral hazard problem at banks.     

Human capital in the financial sector and corporate debt maturity

This study examines how human capital in the financial sector affects corporate debt maturity. To illustrate the mechanisms underlying the effects, we propose a theoretical framework that highlights the effects of human capital in the financial sector on mitigating the information asymmetry between financial intermediaries, households, and firms. Using the Chinese National Economic Census in 2008 and the Industrial Enterprises Database over 2011–2013, we find that the financial sector's human capital plays a significant and positive (negative) role in short-term (long-term) debt and this effect is more pronounced for firms with greater information asymmetry. Further analyses demonstrate that the baseline findings are consistent with the credit supply hypothesis. Our study indicates that human capital in the financial sector strengthens its renegotiation capacity for corporate borrowing, which is consistent with China's financial repression policy and leads to increased exposure of firms to credit and liquidity risks.