|COOKIES: By using this website you agree that we can place Google Analytics Cookies on your device for performance monitoring.|
The Market for Bank Stocks and the Rise of Deposit Banking in New York City, 1866-1897
If you have a question about this talk, please contact D'Maris Coffman.
The rapid growth of deposits in New York City over the three decades following the Civil War is often attributed to the release of pent-up demand for the services that transactions accounts could provide. I advance a complementary explanation that considers the role of an increasingly efficient market for bank shares. The stock market was important because it generated price and dividend quotations that signaled depositors about the soundness of individual banks, thereby directing the expansion. At the same time, innovations within the city’s banks created conditions under which stock prices became more informative, reducing asymmetries between banks and depositors to a point where confidence in banks could grow. Using a new database of stock prices, dividends, and balance sheet items for traded New York City banks from 1866 to 1897, a series of dynamic panel data models show that stock prices did indeed affect the distribution of the growing deposit base.
This talk is part of the Financial History Seminar series.
This talk is included in these lists:
Note that ex-directory lists are not shown.
Other listsHow representing multiple objects (and features) as an ensemble enhances higher-level visual cognition Cambridge Infectious Disease Winton Programme for the Physics of Sustainability
Other talksThe inaugural Professor C.A. Bayly Seminar: Visuality and the moral citizen in late socialist Vietnam Frogs in space: physiological research into metric relationships and laws of nature On the quantum capacity of the qubit depolarizing channel Biodiversity Scenarios.org: Science and strategy in IPBES Carving Romanesque Chiaroscuro Engineering with uncertain load regimes and strange materials – the story of aerospace and nuclear safety critical components