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For capital mobilisation, given little prior merchant finance or financial intermediation, innovative substitution beyond the Crédit Mobilier model was necessary and was provided by the German great banks which combined commercial banking with investment banking to make capital available and to give entrepreneurial support to new industry.
The key role of the joint stock banks in financing industrialisation in Germany was highlighted in the influential comparative study by Alexander Gerschenkron (1962). In Britain, according to Gerschenkron, industrialisation had been a gradual process and the accumulation of capital in the industrial sector was able to draw on
The Crédit Mobilier (officially the Société Générale du Crédit Mobilier, lit. 'general company for movable [collateral-backed] credit') was a French banking company created in 1852 by the Pereire brothers, and one of the world’s most significant and influential financial institutions in the mid-19th century.
Their hypothesis builds on Alexander Gerschenkron's belief that the German great banks "made long-term loans to industry at short-term rates via current account."7 To this tiny shred of evidence they attach their presumption that long-term loans cost more than short-term current account credits.
Adding to the usefulness of current-account credit as an indicator of the extent of industrial financing by banks is its growth as opposed to that of domestic bill credit. Until 1895 current- account credit grew at a rate only moderately faster than that of domestic bill credit.
7 cze 2024 · The Complete Integration or German model identifies a financial conglomerate that can offer insurance, banking, and securities services within a single entity. Universal banking, largely rooted in Germany due to historical and somewhat philosophical factors, expanded...
Another institution, the Bank für Handel und Industrie (usually known as the Darmstädter Bank), pioneered the defining methods of the credit banks. The bank’s founders modeled it on the French Crédit Mobilier, established in 1852.
