The Coevolution of Banks and Corporate Securities Markets: The Financing of Belgium’s Industrial Take-Off in the 1830s
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2021
- handle: 10670/1.eeo2yq
- hal: hal-02164060
- ARXIV: 1906.11023
- doi: 10.1080/00076791.2019.1621293
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info:eu-repo/semantics/altIdentifier/arxiv/1906.11023
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info:eu-repo/semantics/altIdentifier/doi/10.1080/00076791.2019.1621293
info:eu-repo/semantics/OpenAccess
Mots-clés
Universal banks stock markets corporate finance financial development G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G24 - Investment Banking • Venture Capital • Brokerage • Ratings and Ratings Agencies G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill N - Economic History/N.N2 - Financial Markets and Institutions/N.N2.N23 - Europe: Pre-1913 O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance -fin]/General Finance [q-fin.GN] -fin]/Trading and Market Microstructure [q-fin.TR]Sujets proches
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Stefano Ugolini, « The Coevolution of Banks and Corporate Securities Markets: The Financing of Belgium’s Industrial Take-Off in the 1830s », HAL-SHS : économie et finance, ID : 10.1080/00076791.2019.1621293
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Résumé
Recent developments in the literature on financial architecture suggest that banks and markets not only coexist, but also coevolve in ways that are non-neutral from the viewpoint of optimality. This article aims to analyse the concrete mechanisms of this coevolution by focusing on a very relevant case study: Belgium (the first Continental country to industrialize) at the time of the very first emergence of a modern financial system (the 1830s). The article shows that intermediaries played a crucial role in developing secondary securities markets (as banks acted as securitizers), but market conditions also had a strong feedback on banks’ balance sheets and activities (as banks also acted as market-makers for the securities they had issued). The findings suggest that not only structural, but also cyclical factors can be important determinants of changes in financial architecture.