IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Central banking in nineteenth-century Belgium: was the NBB a lender of last resort?

  • Buyst, Erik
  • Maes, Ivo
Registered author(s):

    The creation of the National Bank of Belgium (NBB) in 1850 marked a fundamental reform of the Belgian financial system. It clearly aimed at rendering the financial system more crisis resistant, especially by restricting the leverage of the banking sector. The NBB, which received the privilege to issue banknotes, was subject to strict rules to grant only short-term credit against collateral. The NBB took up a key role in maintaining monetary stability, especially by safeguarding the convertibility of banknotes. The NBB also took part in certain rescue operations of financial institutions. However, this was mostly on explicit demand from the finance minister and for crises concerning discount banks. It would then be an exaggeration to consider it as a lender of last resort, in the sense of taking responsibility for the stability of the financial system. This should be no surprise, given the limitations imposed by its statutes, especially the limitation to short-term credits and the strict rules on collateral, the role of the profit motive in its commercial activities and the priority for safeguarding the convertibility of banknotes.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://journals.cambridge.org/abstract_S0968565008000140
    File Function: link to article abstract page
    Download Restriction: no

    Article provided by Cambridge University Press in its journal Financial History Review.

    Volume (Year): 15 (2008)
    Issue (Month): 02 (October)
    Pages: 153-173

    as
    in new window

    Handle: RePEc:cup:fihrev:v:15:y:2008:i:02:p:153-173_00
    Contact details of provider: Postal: Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK
    Web page: http://journals.cambridge.org/jid_FHR
    Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cup:fihrev:v:15:y:2008:i:02:p:153-173_00. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.