Crisis or Consolidation? Predicting Bank Distress in Sweden 1917-1923
(2021) EKHS12 20211Department of Economic History
- Abstract
- Crises are inherently connected to the strengths and functions of the financial system in creating and expanding credit (Broberg and Ögren, 2019). They are as much products of the innovation and expansion which precede them as they are a cause of the realignment and adjustment that follows them. For this reason, Marx, Minsky and Kindleberger have all regarded financial instability as a fundamental feature of the capitalist economic and financial system. In the context of this broad debate, the Swedish commercial banking crisis of during the period 1917-1923 takes on particular historical interest. Sweden’s commercial banking system has been seen as an integral part of its economic modernisation, whilst also being regarded as largely stable... (More)
- Crises are inherently connected to the strengths and functions of the financial system in creating and expanding credit (Broberg and Ögren, 2019). They are as much products of the innovation and expansion which precede them as they are a cause of the realignment and adjustment that follows them. For this reason, Marx, Minsky and Kindleberger have all regarded financial instability as a fundamental feature of the capitalist economic and financial system. In the context of this broad debate, the Swedish commercial banking crisis of during the period 1917-1923 takes on particular historical interest. Sweden’s commercial banking system has been seen as an integral part of its economic modernisation, whilst also being regarded as largely stable and successful (Ögren, 2021). However, a total of 36 of the 69 banks which were in operation during the period 1917-1923 exited the system and a further eight banks experienced severe distress in 1922, requiring support of the state to retain solvency. This paper will therefore study the post-WWI Swedish commercial banking crisis by using ex-ante balance sheet data to predict crisis performance at the bank-level, and in doing so contribute towards the ongoing debates regarding the nature and causes of financial crises. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9054739
- author
- Easton, Alexander LU
- supervisor
-
- Håkan Lobell LU
- organization
- course
- EKHS12 20211
- year
- 2021
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Financial Crises, Commercial Banking, Financial Instability, Bank Distress.
- language
- English
- id
- 9054739
- date added to LUP
- 2021-06-24 13:14:32
- date last changed
- 2021-06-24 13:14:32
@misc{9054739,
abstract = {{Crises are inherently connected to the strengths and functions of the financial system in creating and expanding credit (Broberg and Ögren, 2019). They are as much products of the innovation and expansion which precede them as they are a cause of the realignment and adjustment that follows them. For this reason, Marx, Minsky and Kindleberger have all regarded financial instability as a fundamental feature of the capitalist economic and financial system. In the context of this broad debate, the Swedish commercial banking crisis of during the period 1917-1923 takes on particular historical interest. Sweden’s commercial banking system has been seen as an integral part of its economic modernisation, whilst also being regarded as largely stable and successful (Ögren, 2021). However, a total of 36 of the 69 banks which were in operation during the period 1917-1923 exited the system and a further eight banks experienced severe distress in 1922, requiring support of the state to retain solvency. This paper will therefore study the post-WWI Swedish commercial banking crisis by using ex-ante balance sheet data to predict crisis performance at the bank-level, and in doing so contribute towards the ongoing debates regarding the nature and causes of financial crises.}},
author = {{Easton, Alexander}},
language = {{eng}},
note = {{Student Paper}},
title = {{Crisis or Consolidation? Predicting Bank Distress in Sweden 1917-1923}},
year = {{2021}},
}