The development of nineteenth century banking

A total of 138 joint-stock banks were created in England and Wales between 1826 and 1844 following the 1826 Bank Act, prompted by the banking crisis of 1825/6, which allowed the formation of such institutions.This work examines these new financial institutions and their development through the nineteenth century.It was initiated in a joint project with Professor P.L. Cottrell, funded by the Leverhulme Trust during the 1990s.

Themes

The key theme of the research has been to discern the relationships between the managements, shareholders and customers of each bank in order assess whether these primarily local institutions had distinct constituencies. The research has developed to drawn comparisons with banking developments in nineteenth century New England, using the work of Naomi Lamoreaux, Insider Lending: Banks, Personal Connections, and Economic Development in Industrial New England (1996).It has also drawn comparison with the predecessors of joint-stock banks – private banking institutions – drawing upon the seminal work of Leslie Pressnell, Country Banking the Industrial Revolution (1956).

Outputs

Lucy Newton, 'The Birth of Joint Stock Banking: a Comparison of England and New England in the Nineteenth Century', forthcoming, Business History Review.

Lucy Newton, University of Reading Business School Discussion Papers, Economics and Management Series, 040, 2007,'Change and Continuity: The Development of Joint Stock Banking in the Early Nineteenth Century' Download (PDF > 500 KB).