Bank Entry during the Antebellum Period

Economopoulous, Andrew; O'Neill, Heather M.

doi:10.2307/2077790

Cited by 21 publications

(9 citation statements)

References 4 publications

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“…The countries included in the sample are Mexico, Argentina, Brazil, Peru, Chile, Costa Rica and El Salvador. Following Economopoulos and O'Neill (1995) and Ng (1988), I analyze the evolution of bank entry and the growth of bank output around the enactment of free-banking in order to test the impact of free-banking on barriers to entry. If free-banking lowered barriers to entry, the entry of banks and the growth of bank output must have been larger in the years following the change in the legislation than in the years prior to the law change.…”

Section: Tablementioning

confidence: 99%

“…The effect of free-banking laws on bank entry has been analyzed by several economists and historians in the United States and Europe. Some empirical studies for the U.S. indicate a positive impact of free-banking laws on the creation of banks prior to the Civil War (Sylla, 1969;Rockoff, 1974;Rolnick and Weber, 1993;Economopoulos and O'Neill, 1995). Ng (1988), however, argues that free-banking laws did not have a significant impact on bank entry 3 .…”

Section: Introductionmentioning

confidence: 99%

“…This analysis of the short-term effects of the institution of free-banking may be more appropriate than the analysis of long-term effects to determine whether the lack of free-banking legislation was a binding constraint for entry or for the reduction in production costs. The idea of a "binding constraint" has received much attention lately in the literature of competitiveness for the analysis of the factors that are binding constraints (obstacles) for the growth of the economies.28 This methodology has similarities with the methods employed byEconomopoulos and O'Neill (1995),Ng (1988) andSylla (1969) in their testing of the effects of free-banking on US bank entry Ng (1988). uses a similar time period for a comparison of the effects of free-banking in the United States, whereasSylla (1969) compares the growth of banking assets before and after the passage of free-banking laws.…”

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confidence: 99%

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Free banking and bank entry in Latin America

Zegarra

2013

Investigaciones de Historia Económica - Economic History Resear

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This article analyzes the impact of free-banking on the banking sector in Latin America in the 19th and early 20th centuries. I use data for seven countries to compare the entry of banks and the growth of bank output prior and after the enactment of free-banking laws to determine whether free-banking (by establishing general requirements for granting note-issuance rights) lowered barriers to entry. The results show that in most Latin American countries the adoption of free-banking laws did not cause in the short run an increase in bank entry and in bank output growth.

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Section: Tablementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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confidence: 99%

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Free banking and bank entry in Latin America

Zegarra

2013

Investigaciones de Historia Económica - Economic History Resear

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“…Bank entry in states with free banking laws was not subject to 4 discretionary control and was easier than in states that did not have free banking laws (Economopoulos and O'Neill 1995). In a free banking state, a bank could be opened and issue banknotes after satisfying specific, legislative requirements.…”

Section: Free Bankingmentioning

confidence: 99%

Bank Failures in Banking Panics: Risky Banks or Road Kill?

Dwyer

Hafer²

2001

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Are banks that fail in banking panics the riskiest ones prior to the panics? The free banking era in the United States provides useful data to examine this question because the assets held by the banks were traded at the New York Stock Exchange. The authors estimate the ex ante riskiness of a bank's portfolio by examining the portfolio relative to mean-variance frontiers and by examining the bank's leverage and notes relative to assets. The authors find that the ex ante riskiness of a bank's portfolio helps predict which banks fail and the extent of noteholders' losses in the event of failure. Terms of use: Documents inJEL classification: G21, G28, E58, N21

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“…Ng (), Bodenhorn (), Economopolous and O'Neill (), and Dwyer () survey antebellum capital and entry requirements.…”

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confidence: 99%