Universal Banking and the Development of Secondary Corporate Debt Markets: Lessons from 1830s Belgium

Arbeitspapier

This paper proposes a reassessment of the old-age debate on universal banking and growth by putting it on a different plan. Modern financial economics are used to provide new theoretical foundations to Gerschenkron's (1962) hypothesis: universality is interpreted as a strategy for banks to reach the critical size needed in order to perform successful securitization of corporate debt. A relevant natural experiment in universal banking and industrialization (Belgium in the 1830s) illustrates the argument. The conclusion is that creating a new financial market also implies establishing intermediaries to supply crucial functions such as underwriting, certification, and liquidity provision.

Object Details

• ISBN: 978-82-7553-578-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2010/21

Classification and Topics

• Classification: Wirtschaft ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Economic History: Financial Markets and Institutions: Europe: Pre-1913 ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: universal banking ; stock markets ; intermediation ; financial development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ugolini, Stefano
• Event: Veröffentlichung
• (who): Norges Bank
• (where): Oslo
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/209966
• Last update: 10.03.2025, 11:41 AM CET