The term insider lending conveys an aura of abuse and corruption, of unethical, if not illegal, behaviour. In early nineteenth-century New England, however, insider lending was an integral aspect of the banking system. Not only was the practice an accepted fact of economic life, but, as Naomi R. Lamoreaux argues, it enabled banks (at least in this particular historical context) to play an important role in financing economic development. As the banking system evolved over the course of the century, however, lending practices became more impersonal and professional. Ironically, the information problems banks faced when they began to conduct more and more of their business at arm's length forced them to concentrate on providing short-term loans to commercial borrowers and to give up financing economic development. This book was first published in 1994.Read more
- This ground breaking study examines the role of insider lending in the banking system of early nineteeth-century New England
- It offers a revealing insight into the social context in which banks operated
- The author highlights the much neglected, yet important benefits of insider lending, including the contribution banks made to financing economic development
Reviews & endorsements
'This is an important book which explores the evolution of bank lending strategies during the industrialisation of New England.' Mary B. Rose, Business History
Not yet reviewed
Be the first to review
Review was not posted due to profanity×
- Date Published: January 1997
- format: Paperback
- isbn: 9780521566247
- length: 194 pages
- dimensions: 229 x 152 x 11 mm
- weight: 0.29kg
- contains: 14 b/w illus.
- availability: Available
Table of Contents
1. Vehicles for accumulating capital
2. Insider lending and Jacksonian hostility towards banks
3. Engines of economic development
4. The decline of insider lending and the problem of determining creditworthiness
5. Professionalization and specialization
6. The merger movement in banking
Sorry, this resource is locked
Please register or sign in to request access. If you are having problems accessing these resources please email firstname.lastname@example.orgRegister Sign in
You are now leaving the Cambridge University Press website. Your eBook purchase and download will be completed by our partner www.ebooks.com. Please see the permission section of the www.ebooks.com catalogue page for details of the print & copy limits on our eBooks.Continue ×
Are you sure you want to delete your account?
This cannot be undone.
Thank you for your feedback which will help us improve our service.
If you requested a response, we will make sure to get back to you shortly.×