IDEAS home Printed from https://ideas.repec.org/a/taf/bushst/v63y2021i6p944-965.html
   My bibliography  Save this article

Debating banking in Britain: The Colwyn committee, 1918

Author

Listed:
  • Mark Billings
  • Simon Mollan
  • Philip Garnett

Abstract

By 1918 the British banking system had reached a degree of maturity and concentration, with a small number of large banks dominating the sector. Political concerns about the rise of financial power led to the appointment of the Colwyn Committee to investigate the amalgamations process, and consider the issue of concentration with reference to the role of banking in the economy. In this article we explore this critical inflection point in British banking history and argue that the Committee’s proceedings reveal that many current concerns about banking correspond to those of a century ago. We also argue that–­contrary to some historical interpretation–the Committee did not ­unequivocally favour financial interests, but rather sought to stabilise organisational change in the sector, and introduce new restrictions on the freedom of banks in respect of amalgamation, as well as supervision and regulation.

Suggested Citation

  • Mark Billings & Simon Mollan & Philip Garnett, 2021. "Debating banking in Britain: The Colwyn committee, 1918," Business History, Taylor & Francis Journals, vol. 63(6), pages 944-965, August.
    • Handle: RePEc:taf:bushst:v:63:y:2021:i:6:p:944-965
    DOI: 10.1080/00076791.2019.1593374
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00076791.2019.1593374
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00076791.2019.1593374?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Braggion, Fabio & Moore, Lyndon, 2013. "The Economic Benefits of Political Connections in Late Victorian Britain," The Journal of Economic History, Cambridge University Press, vol. 73(1), pages 142-176, March.
    2. Levine, Ross & Zervos, Sara, 1998. "Stock Markets, Banks, and Economic Growth," American Economic Review, American Economic Association, vol. 88(3), pages 537-558, June.
    3. Shushu Li & Jinglan Zhang & Yong Ma, 2015. "Financial Development, Environmental Quality and Economic Growth," Sustainability, MDPI, vol. 7(7), pages 1-22, July.
    4. Sibylle H. Lehmann, 2014. "Taking firms to the stock market: IPOs and the importance of large banks in imperial Germany, 1896–1913," Economic History Review, Economic History Society, vol. 67(1), pages 92-122, February.
    5. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    6. Goetz, Martin R. & Laeven, Luc & Levine, Ross, 2016. "Does the geographic expansion of banks reduce risk?," Journal of Financial Economics, Elsevier, vol. 120(2), pages 346-362.
    7. Grossman, Richard S., 1999. "Rearranging deck chairs on the Titanic: English banking concentration and efficiency, 1870–1914," European Review of Economic History, Cambridge University Press, vol. 3(3), pages 323-349, December.
    8. Duncan M. Ross, 1996. "Commercial banking in a market-oriented financial system: Britain between the wars," Economic History Review, Economic History Society, vol. 49(2), pages 314-335, May.
    9. Newton, Lucy, 2010. "The Birth of Joint-Stock Banking: England and New England Compared," Business History Review, Cambridge University Press, vol. 84(1), pages 27-52, April.
    10. Burhop, Carsten, 2006. "Did banks cause the German industrialization?," Explorations in Economic History, Elsevier, vol. 43(1), pages 39-63, January.
    11. repec:taf:bushst:v:57:y:2015:i:1:p:181-201 is not listed on IDEAS
    12. Petra Valickova & Tomas Havranek & Roman Horvath, 2015. "Financial Development And Economic Growth: A Meta-Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 506-526, July.
    13. Levine, Ross, 2002. "Bank-Based or Market-Based Financial Systems: Which Is Better?," Journal of Financial Intermediation, Elsevier, vol. 11(4), pages 398-428, October.
    14. Richard S. Grossman, 2010. "Unsettled Account: The Evolution of Banking in the Industrialized World since 1800," Economics Books, Princeton University Press, edition 1, number 9219.
    15. Turner,John D., 2014. "Banking in Crisis," Cambridge Books, Cambridge University Press, number 9781107030947.
    16. Scott, Peter & Newton, Newton, 2007. "Jealous Monopolists? British Banks and Responses to the Macmillan Gap during the 1930s," Enterprise & Society, Cambridge University Press, vol. 8(4), pages 881-919, December.
    17. Philip Arestis & Georgios Chortareas & Georgios Magkonis, 2015. "The Financial Development And Growth Nexus: A Meta-Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 549-565, July.
    18. Philip Garnett & Simon Mollan & R. Alexander Bentley, 2017. "Banks, births, and tipping points in the historical demography of British banking: A response to J.J. Bissell," Business History, Taylor & Francis Journals, vol. 59(5), pages 814-820, July.
    19. Mitchell Larson & Karen Ward & John Wilson, 2010. "Banking from Leeds, not London: regional strategy and structure at the Yorkshire Bank, 1859-1952," Accounting History Review, Taylor & Francis Journals, vol. 20(2), pages 117-133.
    20. Carlin, Wendy & Mayer, Colin, 2003. "Finance, investment, and growth," Journal of Financial Economics, Elsevier, vol. 69(1), pages 191-226, July.
    21. Peden, G. C., 2000. "The Treasury and British Public Policy 1906-1959," OUP Catalogue, Oxford University Press, number 9780198207078, Decembrie.
    22. Michael Collins & Mae Baker, 2001. "Sectoral Differences in English Bank Asset Structures and the Impact of Mergers, 1860-1913," Business History, Taylor & Francis Journals, vol. 43(4), pages 1-28.
    23. Allen N. Berger & Leora F. Klapper & Rima Turk-Ariss, 2017. "Bank competition and financial stability," Chapters, in: Jacob A. Bikker & Laura Spierdijk (ed.), Handbook of Competition in Banking and Finance, chapter 10, pages 185-204, Edward Elgar Publishing.
    24. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    25. Victoria Barnes & Lucy Newton, 2018. "How far does the apple fall from the tree? The size of English bank branch networks in the nineteenth century," Business History, Taylor & Francis Journals, vol. 60(4), pages 447-473, May.
    26. Chennells, Lucy & Wingfield, Venetia, 2015. "Bank failure and bail-in: an introduction," Bank of England Quarterly Bulletin, Bank of England, vol. 55(3), pages 228-241.
    27. Richard S. Grossman & Masami Imai, 2013. "Contingent capital and bank risk-taking among British banks before the First World War," Economic History Review, Economic History Society, vol. 66(1), pages 132-155, February.
    28. Mark Billings & Forrest Capie, 2011. "Financial crisis, contagion, and the British banking system between the world wars," Business History, Taylor & Francis Journals, vol. 53(2), pages 193-215.
    29. Claude Diebolt & Michael Haupert (ed.), 2016. "Handbook of Cliometrics," Springer Books, Springer, edition 1, number 978-3-642-40406-1, November.
    30. Fohlin, Caroline, 2002. "Regulation, taxation and the development of the German universal banking system, 1884–1913," European Review of Economic History, Cambridge University Press, vol. 6(2), pages 221-254, August.
    31. Collins, Michael & Baker, Mae, 2003. "Commercial Banks and Industrial Finance in England and Wales, 1860-1913," OUP Catalogue, Oxford University Press, number 9780199249862, Decembrie.
    32. Michael Collins, 1998. "English Bank Development within a European Context, 1870–1939," Economic History Review, Economic History Society, vol. 51(1), pages 1-24, February.
    33. Elbaum, Bernard & Lazonick, William, 1984. "The Decline of the British Economy: An Institutional Perspective," The Journal of Economic History, Cambridge University Press, vol. 44(2), pages 567-583, June.
    34. Philip Garnett & Simon Mollan & R. Alexander Bentley, 2015. "Complexity in history: modelling the organisational demography of the British banking sector," Business History, Taylor & Francis Journals, vol. 57(1), pages 182-202, January.
    35. Mohammed Ziaur Rehman & Nasir Ali & Najeeb Muhammad Nasir, 2015. "Financial Development, Savings and Economic Growth: Evidence from Bahrain Using VAR," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 6(2), pages 112-123, April.
    36. Button, Richard & Knott, Samual & Macmanus, Conor & Willison, Matthew, 2015. "Desperate adventurers and men of straw: the failure of City of Glasgow Bank and its enduring impact on the UK banking system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 23-35.
    37. Acheson, Graeme G. & Turner, John D., 2008. "The death blow to unlimited liability in Victorian Britain: The City of Glasgow failure," Explorations in Economic History, Elsevier, vol. 45(3), pages 235-253, July.
    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. Jansson, Walter, 2018. "Stock markets, banks and economic growth in the UK, 1850–1913," Financial History Review, Cambridge University Press, vol. 25(3), pages 263-296, December.
    2. Marc Steffen Rapp & Iuliia A. Udoieva, 2018. "What matters in the finance–growth nexus of advanced economies? Evidence from OECD countries," Applied Economics, Taylor & Francis Journals, vol. 50(6), pages 676-690, February.
    3. Salifou Ouedraogo & Hamidou Sawadogo, 2022. "Financial development, financial structure and economic growth in the Sub‐Saharan African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3139-3162, July.
    4. Mirzaei, Ali & Grosse, Robert, 2019. "The interaction of quantity and quality of finance: Did it make industries more resilient to the recent global financial crisis?," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 493-512.
    5. Guangdong Xu & Binwei Gui, 2021. "The non‐linearity between finance and economic growth: a literature review and evidence from China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 3-18, May.
    6. Iftekhar Hasan & Roman Horvath & Jan Mares, 2018. "What Type of Finance Matters for Growth? Bayesian Model Averaging Evidence," The World Bank Economic Review, World Bank, vol. 32(2), pages 383-409.
    7. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E., 2020. "Unveiling the causal relationships among banking competition, stock and insurance market development, and economic growth in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 74-87.
    8. Allen, Franklin & Bartiloro, Laura & Gu, Xian & Kowalewski, Oskar, 2018. "Does economic structure determine financial structure?," Journal of International Economics, Elsevier, vol. 114(C), pages 389-409.
    9. Iman Cheratian & Saleh Goltabar & Hassan Gholipour Fereidouni & Mohammad Reza Farzanegan, 2023. "External Financing and Firm Growth: Evidence from Micro, Small, and Medium Enterprises in Iran," MAGKS Papers on Economics 202308, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. Mansur, Alfan & Nizar, Muhammad Afdi, 2019. "Mengukur Perkembangan Sektor Keuangan di Indonesia dan Faktor – Faktor yang Mempengaruhi [Assessing the Measurement and Determinants of Financial Sector Development in Indonesia]," MPRA Paper 96265, University Library of Munich, Germany, revised 30 Sep 2019.
    11. Rodolphe Desbordes, 2022. "Financial foreign direct investment and the economic performance of developing countries," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1229-1257, September.
    12. Fei Guo & Shi He, 2020. "The finance-growth nexus in China: a meta-analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 27(13), pages 1071-1075, June.
    13. Popov, Alexander, 2017. "Evidence on finance and economic growth," Working Paper Series 2115, European Central Bank.
    14. Monnet, Cyril & Quintin, Erwan, 2007. "Why do financial systems differ? History matters," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1002-1017, May.
    15. 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.
    16. Wang, Wei & Yang, Haoxi & Wang, Xi, 2023. "Financial development and wage income: Evidence from the global football market," Journal of Banking & Finance, Elsevier, vol. 149(C).
    17. Jiang, Tianjiao & Levine, Ross & Lin, Chen & Wei, Lai, 2020. "Bank deregulation and corporate risk," Journal of Corporate Finance, Elsevier, vol. 60(C).
    18. Denizer Cevdet A. & Iyigun Murat F. & Owen Ann, 2002. "Finance and Macroeconomic Volatility," The B.E. Journal of Macroeconomics, De Gruyter, vol. 2(1), pages 1-32, October.
    19. Michiel Bijlsma & Andrei Dubovik, 2014. "Banks, Financial Markets and Growth in Developed Countries: a Survey of the empirical literature," CPB Discussion Paper 266, CPB Netherlands Bureau for Economic Policy Analysis.
    20. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.

    More about this item

    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:taf:bushst:v:63:y:2021:i:6:p:944-965. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FBSH20 .

    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.