The Effects on Capital Market Development

Capital Women ◽  
2019 ◽  
pp. 93-124
Author(s):  
Jan Luiten
Keyword(s):  
Property Rights ◽  
Interest Rates ◽  
Capital Markets ◽  
State Agencies ◽  
Private Capital ◽  
Financial Assets ◽  
Late Medieval ◽  
Access To Credit ◽  
Late Medieval Period

In this chapter, the authors analyze the functioning of private capital markets in Holland in the late medieval period. They argue that in the absence of banks and state agencies involved in the supply of credit, entrepreneurs' access to credit was determined by two interrelated factors. The first was protection of property rights and the extent to which properties could be used as collateral. The second was interest rates for borrowing money at the time, as well as the obligations of such borrowing compared with the interest rates on risk-free investments. The chapter’s case study is the small town of Edam and its surrounding countryside, De Zeevang, during the fifteenth and sixteenth centuries. The authors show that many households (whether headed by men or women) owned financial assets and/or debts, and the degree of financial sophistication was relatively high.

scholarly journals Can banks be owned?

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Olivier Butzbach ◽  
Gennaro Rotondo ◽  
Talita Desiato
Keyword(s):  
Property Rights ◽  
Regulatory Reform ◽  
Theoretical Explanation ◽  
Access To Credit ◽  
The Past ◽  
Property Rights Theory ◽  
Bank Ownership ◽  
Equity Ownership ◽  
And Control

Abstract A now well-established literature in economics assesses the effect of different forms of bank ownership on various measures of banks’ performance. Such literature has its theoretical roots in a surprisingly narrow framework, broadly identified with property rights theory. However, such theory – or bundle of theories – has been increasingly criticized for its inability to account for the emergence, the existence and the functioning of business firms. Indeed, many works and authors counter mainstream property rights theory, arguing instead that firms are entities that cannot be possessed – and that equity ownership should not be equaled with firm ownership. Nowhere is perhaps this critique more salient than in the field of banking. As the 2007/08 crisis reminded many observers, banks are not just firms or corporations: they are institutions, endowed with a dual social purpose (the creation of money and the setting of rules for access to credit). If the ownership of firms is difficult to conceive, the ownership of institutions such as banks is obviously harder still to envision. However, over the past twenty to thirty years, regulatory reform in finance has led to the empowerment of ownership, and especially private ownership, in the field of banking. This is apparent, for instance, with the 2007/44 European Directive, which fully liberalized equity ownership (and control) of banks. Yet, even within the actual legal and regulatory framework, there are many limitations to property rights as applied to banks. This paper thus has two aims: firstly, to develop a theoretical explanation of the heuristic and empirical limitations of “bank ownership”; and, secondly, to analyze, on the basis of an empirical case study of Italian banking law, the nature and extent of the property rights associated with ownership in banks.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

Big Business and the State in the Neoliberal Era

2017 ◽  
Author(s):  
Daniel Maman
Keyword(s):  
Financial Liberalization ◽  
Business Groups ◽  
State Agencies ◽  
Private Capital ◽  
Dominant Position ◽  
Big Business ◽  
The Public ◽  
Neoliberal Policies ◽  
State Subsidies

The chapter documents patterns of both change and continuity in the structure of big business in Israel in the neoliberal era, and the role of state agencies vis-à-vis big business. Specifically, it discusses how privatization, financial liberalization, and direct and indirect state subsidies have contributed to the dominant position of large enterprises and business groups in the Israeli political economy. While neoliberal policies have served the interests of private capital and business groups, they were actively driven by state agencies seeking to regain autonomy by withdrawing unselective and burdensome state subsidies, and by shrinking and depoliticizing the public sector.

scholarly journals Getting a Foot in the Door: Small-Firm Credit and Interest Group Politics in the Netherlands, 1900–1927

2020 ◽  
pp. 1-37
Author(s):  
RUBEN PEETERS
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Power Structures ◽  
Access To Credit ◽  
Financial Infrastructure ◽  
History Of ◽  
Interest Group Politics ◽  
Group Politics ◽  
The Government

This article explores the link between the history of small-firm associations and the development of Dutch financial infrastructure geared toward small firms. In particular, it tests Verdier’s thesis about the origins of state banking using an in-depth case study of the Dutch small-firm movement. This article shows that Dutch small-firm associations did not simply became politically relevant and use their power to lobby for state banking, but rather used the topic of insufficient access to credit to rally support, mobilize members, and obtain subsidies from the government. During this associational process, they had to navigate local contexts and power structures that, in turn, also shaped the financial system. State banking was initially not demanded by small firms, but arose as the result of failed experiments with subsidized banking infrastructure and a changing position of the government on how to intervene in the economy.

scholarly journals The influence of common property rights on forest management policy: a case study in Sardinia region, Italy

2012 ◽  
Vol 56 (1) ◽  
pp. 16-26 ◽  
Author(s):  
Alessandro Paletto ◽  
Isabella De Meo ◽  
Fabrizio Ferretti
Keyword(s):  
Forest Management ◽  
Property Rights ◽  
Common Property ◽  
Private Property ◽  
Local Development ◽  
Management Policy ◽  
Private Forests ◽  
The Public ◽  
The Common

Abstract The property rights and the type of ownership (private owners, public domain and commons) are two fundamental concepts in relationship to the local development and to the social and environmental sustainability. Common forests were established in Europe since the Middle Ages, but over the centuries the importance of commons changed in parallel with economic and social changes. In recent decades, the scientific debate focused on the forest management efficiency and sustainability of this type of ownership in comparison to the public and private property. In Italy common forests have a long tradition with substantial differences in the result of historical evolution in various regions. In Sardinia region the private forests are 377.297 ha, the public forests are 201.324 ha, while around 120.000 ha are commons. The respect of the common rights changed in the different historical periods. Today, the common lands are managed directly by municipalities or indirectly through third parties, in both cases the involvement of members of community is very low. The main objective of the paper is to analyse forest management differences in public institutions with and without common property rights. To achieve the objective of the research the forest management preferences of community members and managers were evaluated and compared. The analysis was realized through the use of the principal-agent model and it has been tested in a case study in Sardinia region (Arci-Grighine district). The analysis of the results showed that the categories of actors considered (members of community, municipalities and managers) have a marked productive profile, but municipalities manage forests perceiving a moderate multifunctionality. Moreover, the representatives of the municipalities pay more attention to the interests of the collectivity in comparison to the external managers. They also attribute high importance to environmental and social forest functions.

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