Banking Market Integration in the Russian Empire in the late 19th Century: a Statistical Analysis
Table of contents
Share
Metrics
Banking Market Integration in the Russian Empire in the late 19th Century: a Statistical Analysis
Annotation
PII
S207987840001233-5-1
Publication type
Article
Status
Published
Abstract
This research deals with integration processes in the commercial banking market in the Russian Empire at the end of the 1890s. The integration is studied through interest rate analysis: the smaller the difference in interest rates between regions and periods means greater market integration, as well as an easier way for banks to move resources to regions of potential growth. The average annual rate of return on all loans in a bank is used as a substitute for interest rate in this study. This rate has been calculated for any central office or regional branch of the Russian joint-stock commercial banks in 1897, based on the banks’ annual reports. These data on bank units are grouped in accordance with large economic and geographical regions of the Russian Empire. According to the statistical analysis, including regression, lending rates of commercial banks fluctuated within a narrow range of 6—8 % in most regions and higher rates were relatively rare. The regional interest rates’ distribution can be explained by supply-demand effects (the more resources there were in the region the lower rates were there), scale effects (larger banks offered lower rates), as well as effects related to market imperfections when access to bank loans was mainly for groups of privileged customers, close to the bank’s owners and its top-level managers (credit rationing).
Keywords
commercial banking, Russian Empire, interest rates, lending, market integration, credit rationing
Received
15.08.2015
Publication date
31.08.2015
Number of characters
60515
Number of purchasers
31
Views
10280
Readers community rating
0.0 (0 votes)
Cite Download pdf 100 RUB / 1.0 SU

To download PDF you should sign in

Full text is available to subscribers only
Subscribe right now
Only article
100 RUB / 1.0 SU
Whole issue
1000 RUB / 10.0 SU
All issues for 2015
2500 RUB / 50.0 SU

References



Additional sources and materials

  1. Davis L. E. The Investment Market, 1870—1914: the Evolution of a National Market // The Journal of Economic History. Vol. 25. 1965. № 3. P. 355—399.
  2. Lamoreaux N. R. Insider Lending: Banks, Personal Connections, and Economic Development in Industrial New England. Cambridge; New York: Cambridge University Press, 1994.
  3. Levine R. Finance and Growth: Theory and Evidence // Handbook of Economic Growth / ed. by Ph. Aghion, S. N. Durlauf. New York: Elsevier, 2005. P. 867—934.
  4. Mitchener K. J., Ohnuki M. Capital Market Integration in Japan // Monetary and Economic Studies. 2007. Vol. 25. № 2. P. 129—154.
  5. Mitchener K. J., Ohnuki M. Institutions, Competition, and Capital Market Integration in Japan // The Journal of Economic History. Vol. 69. 2009. № 1. P. 138—171.
  6. Sylla R. Federal Policy, Banking Market Structure, and Capital Mobilization in the United States, 1863—1913 // The Journal of Economic History. Vol. 29. 1969. № 4. P. 657—686.
  7. Wang T.-Ch. Banks, Credit Markets, and Early American Development: A Case Study of Entry and Competition // The Journal of Economic History. Vol. 68. 2008. № 2. P. 438—461.
  8. Bovykin V. I., Petrov Yu. A. Kommercheskie banki Rossijskoj imperii. M., 1994.
  9. Bogolepov M. I. Gosudarstvennyj Bank i kommercheskij kredit // Bankovaya ehntsiklopediya / pod obsch. red. prof. L. N. Yasnopol'skogo. T. 1. Kiev, 1914. S. 283—370.
  10. Gindin I. F. Russkie kommercheskie banki. M., 1948.
  11. Drobizhev V. Z., Koval'chenko I. D., Murav'ev A. V. Istoricheskaya geografiya SSSR. M., 1973. S. 182—184.
  12. Petrov Yu. A. Kommercheskie banki Moskvy, konets XIX v. — 1914 g. M., 1998.
  13. Salomatina S. A. Kommercheskie banki v Rossii: dinamika i struktura operatsij, 1864—1917 gg. M., 2004.
  14. Salomatina S. A. Rekonstruktsii dannykh v istoricheskoj statistike: otdeleniya kommercheskikh bankov Rossijskoj imperii v 1897 g. // Vestnik Permskogo universiteta. Seriya «Istoriya». 2014. T. 26. № 3. S. 87—98. Prilozhenie «Filial'nye seti kommercheskikh bankov Rossijskoj imperii na 1 yanvarya 1898 g. Statisticheskaya svodka s kommentariyami». URL: http://istina.msu.ru/publications/article/6626225/
  15. Chistova O. V. Kreditnaya klientura banka Ryabushinskikh v period ehkonomicheskogo pod'ema 1909—1913 gg. // Ehkonomicheskaya istoriya: Ezhegodnik. 2011/2012. M., 2012. S. 315—352.