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
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'This is an important book which explores the evolution of bank lending strategies during the industrialisation of New England.' Mary B. Rose, Business History
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- 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
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