University of Cambridge > Talks.cam > Financial History Seminar >  God and risk: The role of religion in rural cooperative banking in early twentieth-century Netherlands

God and risk: The role of religion in rural cooperative banking in early twentieth-century Netherlands

Add to your list(s) Download to your calendar using vCal

If you have a question about this talk, please contact D'Maris Coffman.

What is the relationship between religion and risk taking in banking? The Netherlands’ new cooperative movement at the turn of the twentieth century was instigated by religious groups – Roman Catholics, orthodox Calvinists and liberal Protestants. Using quantitative analysis combined with archival business histories, this paper investigates how religion mattered for the banks’ risks in the build-up to, during, and immediately following the price deflation of the 1920s. It finds that the level of risk was partly determined by the relative size of banks’ affiliated religious denomination within their local market. Financial analysis suggests that banks serving small religious groups were less willing and able to take on risks than those serving larger minorities. Evidence from two case studies is consistent with the use of a theory of club goods as an explanation for this finding. Strict membership criteria and the use of personal guarantors in loan agreements acted as strong screening and monitoring devices, regardless of religious affiliation.

There are a handful of places left at dinner. Interested parties should contact ddc22.

This talk is part of the Financial History Seminar series.

Tell a friend about this talk:

This talk is included in these lists:

Note that ex-directory lists are not shown.

 

© 2006-2020 Talks.cam, University of Cambridge. Contact Us | Help and Documentation | Privacy and Publicity