1st Edition

Bank-Industry versus Stock Market-Industry Relationships

Edited By José L. García-Ruiz, Michelangelo Vasta Copyright 2023

    This book focuses on a variety of themes concerning the relationship between financial systems in a broader sense and firms’ growth in historical perspective in some European countries. Financial systems are nowadays largely acknowledged to be a crucial element in determining economic growth. In modern economies, they play a key role by mobilizing savings, pricing risks and allocating capital to firms. Following a consolidated taxonomy focusing on the historical perspective, countries have been conventionally divided into bank-oriented (Continental Europe countries and Japan) and market-oriented systems (Anglo-Saxon countries).

    The chapters in this book present case studies on Belgium, Great Britain, France and Italy and show that financial systems do not trigger growth processes and industrialization, but they are essential to sustain them over time. Each society has the financial system that fits with its historical trajectory, without any being better or worse than others. The important thing is to have a financial system that is sophisticated and stable, and that evolves according to the demand forces of the moment. History matters.

    Bank-Industry versus Stock Market-Industry Relationships will be a beneficial read for students interested in economics and business history. The chapters in this book were originally published as a special issue of Business History.

    Introduction— Financing firms: Beyond the dichotomy between banks and markets

    José L. García-Ruiz and Michelangelo Vasta

    1. The coevolution of banks and corporate securities markets: The financing of Belgium’s industrial take-off in the 1830s

    Stefano Ugolini

    2. Did French stock markets support firms of the Second Industrial Revolution?

    Emilie Bonhoure and David Le Bris

    3. Debating banking in Britain: The Colwyn committee, 1918

    Mark Billings, Simon Mollan and Philip Garnett

    4. Corporate networks in post-war Britain: Do finance– industry relationships matter for corporate borrowing?

    Philipp Kern and Gerhard Schnyder

    5. The banking-industry relationship in Italy: Large national banks and small local banks compared (1913– 1936)

    Alberto Rinaldi and Anna Spadavecchia


    José L. García-Ruiz is Professor of Economic History at the Complutense University of Madrid (Spain). His lines of research are business history, financial history and industrial history. Between 2015 and 2019 he was Editor-in-chief of Investigaciones de Historia Económica-Economic History Research (IHE-HER), the academic journal of the Spanish Economic History Association.

    Michelangelo Vasta is Professor of Economic History at the University of Siena (Italy). He received his D.Phil at University of Oxford. His main fields of interest are economics of innovation in the long run perspective, institutions and economic performance, the economic history of living standard, entrepreneurship and trade. He pays particular attention to historical dataset and quantitative methods. He has published extensively in the major economic history and business history journals.