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How modern banking originated: The London goldsmith-bankers' institutionalisation of trust.

Authors :
Kim, Jongchul
Source :
Business History; Oct2011, Vol. 53 Issue 6, p939-959, 21p, 4 Diagrams
Publication Year :
2011

Abstract

London goldsmith-bankers' development of paper credit-money in the seventeenth century ushered in the era of modern banking. This essay argues that this innovation of paper credit-money by goldsmith-bankers was the institutionalisation of the double-ownership scheme known as trust. This trust scheme was at the centre of the custom or morality that underlay the political struggle between the Crown, landowners, and the bourgeoisie in early modern England, the struggle from which goldsmith-banking and, later, joint-stock banking developed. This double ownership remains a central feature of the present banking system. Also during the financial boom of the late twentieth century, which ended in the present world financial crisis, the trust scheme was used extensively by many financial firms, such as mutual funds, pension funds, and asset-securitisation trusts. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00076791
Volume :
53
Issue :
6
Database :
Complementary Index
Journal :
Business History
Publication Type :
Academic Journal
Accession number :
66788023
Full Text :
https://doi.org/10.1080/00076791.2011.578132