Insights from Newly Digitized US Banking Knowledge, 1867-1904

The NY Fed has digitised banking information from 1867-1904. They share some findings by way of their Libertystreet blig:

The Nationwide Banking Period, which spans the interval between the Civil Struggle and the founding of the Federal Reserve System (roughly 1863 to 1913), is an thrilling laboratory for empirical banking analysis. The tip of the nineteenth century was an necessary part in world historical past, with globalization, the fashionable company, and financial development all taking off on the similar time. This was additionally a interval of quick development and fast westward growth for the U.S. banking system, as proven within the animated map beneath.

Progress of Nationwide Banks throughout Area and Time

Not like fashionable banks, nationwide banks have been capable of concern financial institution notes, however they in any other case operated a lot as banks do at present, taking deposits and making loans. The regulatory regime of the interval, nonetheless, was decidedly totally different. As an example, banks’ geographic footprint was closely restricted, largely confining them to the native market, and financial institution capital necessities posed a barrier to entry for potential opponents reasonably than a restriction on leverage for incumbent corporations. In previous research, we exploited each of those regulatory peculiarities to make clear traditional questions concerning the results of banking competitors.

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