Financial Development : A Century of Competition between French Banks and Notaries

نویسندگان

  • Philip T. Hoffman
  • Jean-Laurent Rosenthal
چکیده

Because poorly developed financial markets block economic growth, it is argued that modern intermediaries (banks) have to replace traditional intermediaries. The claim is that the traditional intermediaries are inefficient. We test that claim using an original panel data set from nineteenthcentury France that is the first to provide quantitative evidence about traditional intermediaries (notaries), the scope of their business, and the entry of banks. We show that modern intermediaries were not more efficient. Despite free entry, they did not displace notaries, who arranged most mortgages and had originated a stock of mortgage loans equal to 27 percent of GDP in 1840. Overall, modern financial intermediaries were not substitutes for traditional ones. The results raise questions about empirical evidence linking financial development and economic growth.

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Bank Competition and Risk-taking in the Iranian Banking Industry

Abstract: The banking industry is one of the main sectors of the economy of any country, that its health is a necessary condition to play a positive role in the economic development of that country. The health of the banking system is assessed by the financial stability criterion, which is evaluated by various risk-taking indexes. On the other hand, the banks risk-taking is affected by various...

متن کامل

Determination of Optimal Market Concentration in order to maximize the Stability of the Banking

Banking stability in recent years especially after the financial crisis of 2008-2009, has received more and more attention in policymaking. Although competition is a prerequisite for productivity, technological innovation, institutional development, and financial inclusion, the impact of banking competition on financial stability has been the subject of active debate. in this article, the optim...

متن کامل

Managers' Social Capital and Financial Performance of Banks

Given the present era, the major share of resources attraction and allocation in the banks occurs in connection with society. As such, managers need social capital as well as physical and human capital in order to attain organizational goals, provide the ground for competition and pave the way for the development of their respective organization. Managerial social capital is an asset in a socia...

متن کامل

A Model for relationship management with fintech and financial startups in banking industry

Todays, with the growth of competition in the banking industry, on the one hand, and the development and change of customer needs on the other hand, banks have been continuously seeking to provide modern banking services and to exploit new technologies. One of the new technologies that we have seen in the past few years in the banking industry is the Fintech and financial startups that have bro...

متن کامل

Study the Relationship between Competition and cost Efficiency in Iran’s Banking Industry

An important factor affecting economic growth is the creation of an efficient financial system for financing high value-added activities. Accordingly, this study examined the relationship between cost efficiency and competition in Iran’s banking industry using data of 18 state-owned and private banks over the period of 2006-2015. To do so, we used trans-log cost function to measure the cost eff...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2012