‘Learning to bring dead capital to life’: the Riksens Ständers Bank and the credit market in seventeenth-century Sweden

2019 ◽  
Vol 34 (2) ◽  
pp. 209-230
Author(s):  
Christopher Pihl
Keyword(s):  
Seventeenth Century ◽  
Real Estate ◽  
Credit Market ◽  
Mortgage Lending ◽  
Coherent System ◽  
Credit System ◽  
Personal Trust ◽  
Private Credit ◽  
Property Registration

AbstractSuccessful mortgage lending is often said to require a system of registration, which records the ownership of, and any encumbrances on, a particular piece of real estate. Here we analyse how Sweden's Riksens Ständers Bank handled the uncertainties of the mortgage lending market c. 1680–1700, when there was no coherent system of property registration. The bank tried to make registration compulsory, but when influential groups opposed this move, the bank had to modify its lending practices. The study thus sheds light on the somewhat fraught initial stages of the shifts in the credit system, which from the latter half of the seventeenth century onwards, saw personal trust replaced by system trust, and private credit replaced by institutional credit.

Introduction

2019 ◽  
pp. 1-9
Author(s):  
Philip T. Hoffman ◽  
Gilles Postel-Vinay ◽  
Jean-Laurent Rosenthal
Keyword(s):  
Dark Matter ◽  
Real Estate ◽  
Developing Economy ◽  
Credit System ◽  
Poor Countries ◽  
The Past ◽  
Private Credit ◽  
The Universe

This introductory chapter looks at the ways to borrow in France before banks opened their doors, and the big mountain of debt this shadow credit system raised, even by modern standards. Much of this capital was raised for agriculture and urban real estate, sectors critical in a developing economy that banks often shun because of the risks of farming and the long loan maturities of real estate lending. Until now, virtually no one has noticed this big debt, despite its size. In a way, it is like the dark matter that makes up some eighty-five percent of the universe but cannot be directly observed. Worse yet, they have simply assumed that what cannot easily be observed—private credit in the past or in poor countries today—was insignificant or simply not there at all.

Different Shades of Seventeenth-Century Probabilism

2017 ◽  
Author(s):  
Stefania Tutino
Keyword(s):  
Seventeenth Century ◽  
Thematic Analysis ◽  
Moral Theology ◽  
Economic Thought ◽  
Coherent System

This chapter provides a thematic analysis of some of the most significant applications of probabilism to a number of epistemological, intellectual, political, and theological questions. It focuses on four early seventeenth-century authors, each using probabilism to advance a specific intellectual agenda: Tomás Sánchez and his effort to articulate probability as a trait d’union between conscience and law in the context of his elaboration on the doctrine on marriage; Leonardus Lessius and his attempt to use probabilism to update Catholic doctrine and especially Catholic economic thought; Juan Azor and his endeavor to structure probabilism within a stable and coherent system of knowledge; and Emmanuel Sa and his vulgarization of probabilism for the sake of confessors and other readers who did not necessarily have a deep background in, and extensive knowledge of, moral theology.

PROBLEMS AND PROSPECTS FOR THE DEVELOPMENT OF THE MORTGAGE LENDING MARKET IN RUSSIA

2020 ◽  
Vol 2 (12) ◽  
pp. 64-69
Author(s):  
Yu. A. DVORETSKAYA ◽  
◽  
K. S. MAKHNOVSKAYA ◽  
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Mortgage Lending ◽  
Residential Real Estate ◽  
Housing Provision ◽  
Mortgage Loans ◽  
Socio Economic Development

In connection with the transition to market principles for solving the issues of housing provision, one of the significant problems of the socio-economic development of Russia has become the multiple gap between the size of current monetary receipts of citizens and the high cost of residential real estate. This article examines the features of the mortgage lending market in Russia, the problems and prospects of its development, provides and analyzes the statistics of mortgage loans.

ANALYSIS OF THE PECULIARITIES OF THE DEVELOPMENT OF MORTGAGE HOUSING LENDING IN THE RUSSIAN FEDERATION AND DEVELOPED FOREIGN COUNTRIES

2021 ◽  
Vol 2 (5) ◽  
pp. 32-37
Author(s):  
V. V. TADTAEVA ◽  
◽  
B. E. BAGAEV ◽  
A. A. DATIEVA ◽  
◽  
...  
Keyword(s):  
Russian Federation ◽  
Practical Experience ◽  
Mortgage Lending ◽  
Economic Situation ◽  
Credit System ◽  
Foreign Countries ◽  
The Russian Federation ◽  
Financial Mechanism

Mortgage lending is one of the key levers in the financial mechanism of the country, contributing to the formation of a stable socio-economic situation of the population. There are many factors that hinder the formation of an effective mortgage lending system. In this case, we should not neglect the practical experience of developed foreign countries, whose credit activities are a powerful element of the financial and credit system.

Establishment and Operation of Private Land Credit Institutions in Penza Province in the Late 1860s – mid 1880s

2021 ◽  
Vol 17 (4) ◽  
pp. 349-360
Author(s):  
Natalia A. Kisteneva
Keyword(s):  
Agricultural Sector ◽  
Private Landowners ◽  
Private Land ◽  
Credit System ◽  
Economic Activities ◽  
Economic Methods ◽  
Private Credit ◽  
Set Up ◽  
The 19Th Century ◽  
Credit Institutions

Introduction. The abolition of public credit institutions in the first half of the 19th century meant that following after the peasant reform, private landowners were forced to rely entirely on their ability to conduct economic activities, they desperately needed the money demanded for the capitalist modernization of their estates. It was important under such circumstances the appearance in the mid-1860s of private land banks that have granted land collateral loans. Materials and Methods. The study of the claimed problem required the involvement of a number of historical and economic methods: historical, statistical and quantitative. At the same time, the question of the amount of debt owed to private land banks was examined on the basis of a comprehensive analysis of statistical data on land credit published by a committee of congresses of representatives of Russian land credit institutions. Results. The article analyzes the main indicators of the activity of the joint-stock land banks in the first two decades of their operation, considers the characteristics of the establishment and development of the private land credit system, the volume of loans issued, the size of the mortgaged land, the amount of the loans are shown by their regional characteristics. Discussion and Conclusions. Set up in mid-nineteenth century the system of equity land credit, which focuses on the granting of land mortgages by private landowners, has played an important role in the processes of land ownership mobilization and the development of capitalism in the agricultural sector. Private credit institutions were one of the most important components of the land credit system, and the activities of these institutions in the territory of the governorate in question resulted in: that almost a quarter of all privately owned land had been deposited in them.

Debt and Corporate Governance

2015 ◽  
Author(s):  
Charles K. Whitehead
Keyword(s):  
Corporate Governance ◽  
Credit Risk ◽  
Credit Market ◽  
Lending Relationships ◽  
Private Credit ◽  
Traditional Function ◽  
Over Time

This chapter focuses on the evolving role of debt as a tool of corporate governance, or debt governance, within the context of developments in the private credit market. It first discusses debt’s traditional function, with particular emphasis on illiquid loans and the lenders’ reliance on monitoring and covenants in order to manage a borrower’s credit risk. It then considers how loans and lending relationships have evolved over time in light of the increased liquidity of traditionally private instruments. One outcome for debt governance may be a shift from the traditional dependence on covenants and monitoring to a greater reliance on the disciplining effect of liquid credit instruments.

scholarly journals Economic Mechanism and Cash Flows Modeling for Reverse Mortgage

2018 ◽  
Vol 22 (6) ◽  
pp. 106-120
Author(s):  
E. V. Kuz’mina ◽  
A. A. Yanin
Keyword(s):  
Real Estate ◽  
Senior Citizens ◽  
Market Equilibrium ◽  
Cash Flows ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Reverse Mortgage ◽  
Economic Mechanism ◽  
Expected Benefits ◽  
The Uk

The research is devoted to the economic mechanism of reverse mortgage —  a credit product aimed at improving the standard of living of senior citizens, owners of real estate. The idea of the reverse mortgage has been given, as well as the mechanisms of use of real estate owned by senior citizens in order to provide them with additional income. The examples of reverse mortgage in the uS, the uK, Spain and Australia have been given. The authors have also described the methods of reverse mortgage lending in Russia. Based on the analysis of international experience, the economic expediency of investing in this credit tool has been assessed. Considering consumer demand factor, it is possible to calculate the equilibrium rate and, therefore, to find the coordinates of the market equilibrium point. The authors have developed a mathematical model of reverse mortgage for the case of lifetime annuity payments. This model allows to calculate the expected benefits of borrowers and lenders. There have been done (and implemented) two notes that significantly distinguish reverse mortgage modeling from other loan products: 1) a lifetime reverse mortgage does not have a fixed expiration date; 2) when taking a loan of this type, borrowers consider not only consumption, but also accumulation of inheritance. The model allows to calculate the position of break-even points and market equilibrium (relative to the interest rate). This will help economically interested agents to assess the potential of the reverse mortgage market in Russia.

scholarly journals The Analysis Of The Rural Credit Market In Ghana

2010 ◽  
Vol 9 (8) ◽  
Author(s):  
George Owusu-Antwi ◽  
James Antwi
Keyword(s):  
Interest Rate ◽  
Rural Economy ◽  
Banking Sector ◽  
Critical Role ◽  
Credit Market ◽  
Credit System ◽  
Theoretical Understanding ◽  
Interest Rate Policy ◽  
Rural Credit ◽  
Rural Credit Market

The formal banking sector does not satisfy the growing demand for credit, and many borrowers turn to informal loan sources to meet their production and consumption needs. The problem of the rural credit, which includes supplying credit for a rural community for economic growth, is reemerging on the development agenda as a pressing issue. The rural economy is financially very fragile. Lack of credit is a significant and sometimes binding constraint, limiting investment in productivity-enhancing technology and inputs. Rural credit plays a critical role in household strategies to reduce vulnerability. In spite of the contribution that credit entails to the rural development, it has been one of the crucial factors that have not been given proper attention. The purpose of this paper is to identify problems that have hindered the effectiveness of the rural credit market in Ghana. The paper is premised on the theoretical understanding of rural credit markets and applies the framework to investigate the aspect of the rural credit market in Ghana. Improving the rural credit system will help to raise household incomes and reduce poverty and will contribute to the eradication of extreme poverty. The paper identifies high cost, interest rate, lack of collateral, lack of innovation and high delinquency rates as the main factors that have hindered the effectiveness of the rural credit market in Ghana. This paper will interest policymakers to place more emphasis on savings mobilization and to revisit interest rate policy, while providing cheap and adequate credit to small and poor farmers.

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