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The Balancing Act of German Universal Banks and English Deposit Banks, 1880-1913

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  • Caroline Fohlin

Abstract

This article uses aggregate bank balance sheet data to investigate systematic differences in the financial makeup and activities of universal and specialised banks over the decades leading up to World War One. The results show that British and German banks structured assets similarly, but German banks held more liquid assets relative to short?term liabilities. Furthermore, German banks apparently owned few industrial equities and did so mainly because of insufficient markets for new issues. The findings add to recent work suggesting that the commonly perceived gulf between British and German banking exaggerates the differences between systems and their effects.

Suggested Citation

  • Caroline Fohlin, 2001. "The Balancing Act of German Universal Banks and English Deposit Banks, 1880-1913," Business History, Taylor & Francis Journals, vol. 43(1), pages 1-24.
  • Handle: RePEc:taf:bushst:v:43:y:2001:i:1:p:1-24
    DOI: 10.1080/713999206
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    Cited by:

    1. Stefano Battilossi, 2009. "Did governance fail universal banks? Moral hazard, risk taking, and banking crises in interwar Italy1," Economic History Review, Economic History Society, vol. 62(s1), pages 101-134, August.
    2. Leslie Hannah, 2007. "Pioneering Modern Corporate Governance: a View from London in 1900," CIRJE F-Series CIRJE-F-487, CIRJE, Faculty of Economics, University of Tokyo.
    3. Colvin, Christopher L., 2015. "The past, present and future of banking history," QUCEH Working Paper Series 15-05, Queen's University Belfast, Queen's University Centre for Economic History.
    4. Leslie Hannah, 2007. "Pioneering Modern Corporate Governance: a View from London in 1900 (Subsequently published in "Enterprise and Society", vol. 8, no. 3, September 2007, pp. 642-86. )," CARF F-Series CARF-F-093, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.

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