State banking is the intervention of the state in the allocation of credit. State banking became important during the course of this century in some Organization for Economic Cooperation and Development (OECD) countries but not in others and then declined in the 1980s. Why? State banking was demanded by sectors that were pressed to invest but that could not find access to long-term credit because of the marginal importance of small and local banks in countries with centralized market and state institutions. The class cleavage enabled these groups to extract state banking from central governments thanks to their pivotal role in the Right-Left rivalry. The current demise of state banking reflects the shift from class to territorial modes of interest articulation in capital markets.
Get full access to this article
View all access options for this article.
References
1.
Ackland, R. , & Harper, I. R. (1992). Financial deregulation in Australia: Boon or bane? In P. J. Forsyth (Ed.), Microeconomic reform in Australia (pp. 45-71). St. Leonards, Australia: Allen & Unwin.
2.
Albrecht, C. (1989). Nationalism and municipal savings banks in Bohemia before 1914. Slovene Studies, 11, 57-64.
3.
Alt, J. , & Gilligan, M. (1994). The political economy of trading states: Factor specificity, collective action problems, and political institutions. Journal of Political Philosophy, 2, 165-192.
4.
Annuaire statistique de la Belgique [Statistical Yearbook of Belgium]. (various years). Brussels: Institut national de statistique.
5.
Annual Abstract of Statistics. (various years). London: Central Statistical Office, Government Statistical Service.
6.
Australian Financial System. (1980, May). Interim report of the Committee of Inquiry. Canberra: Australian Government Publishing Service.
7.
Banca d'Italia . (various years). Bolletino della Banca d'Italia [Bank of Italy's bulletin]. Rome: Author.
8.
Banca d'Italia . (various years). Relazione annuale della Banca d'Italia [Bank of Italy's annual report]. Rome: Author.
9.
Banco de España . (1986). Cuentas financieras de la economía española 1970-1984 [Financial accounts of the Spanish economy]. Madrid, Spain: Author.
10.
Banco de España . (1996). Cuentas financieras de la economía española 1986-1995 [Financial accounts of the Spanish economy]. Madrid, Spain: Author.
11.
Bankaktiebolagen Fondkommissionärerna Fondbörsen och VPC . (various years). Sveriges officiella statistik [Commercial banks, stockbrokers, the Stock Exchange and the Securities Register Center]. Bankinspektionen. Stockholm: Author.
12.
Banque de France . (various years). Statistiques monétaires et financières annuelles [Annual monetary and financial statistics]. Paris: Author.
13.
Batenburg, A. , Brouwer, S., & Louman, D. W. (1954). The Netherlands. In B. Haggott Beckhart (Ed.), Banking systems (pp. 609-656). New York: Columbia University.
14.
Baubeau, P. , Lavit d'Hautefort, A., & Lescure, M. (1994). Histoire publique d'une société privée: Le Crédit National 1919-1994 [Public history of a private company: the Crédit National]. France: Editions Jean-Claude Lattès.
15.
Bayliss, B. T. , & Butt Philip, A.A.S. (1980). Capital markets and industrial investment in Germany and France. Westmead, UK: Saxon House.
16.
Beer, S. H. (1982). Britain against itself. New York: Norton.
17.
Bloomfield, G. T. (1984). New Zealand: A handbook of historical statistics. Boston: G. K. Hall & Co.
18.
Board of Governors of the Federal Reserve System . (1943). Banking and monetary statistics. Washington, DC: Author.
19.
Board of Governors of the Federal Reserve System . (1959). All-bank statistics. United States. 1896-1955. Washington, DC: Author.
20.
Board of Governors of the Federal Reserve System . (various years). Federal reserve bulletin. Washington, DC: Author.
21.
Board of Governors of the Federal Reserve System . (various years). Annual report. Washington, DC: Author.
22.
Bollen, K. A. , & Jackman, R. W. (1990). Regression diagnostics: An expository treatment of outliers and influential cases. In J. Fox & J. S. Long (Eds.), Modern methods of data analysis (pp. 257-291). Newbury Park, CA: Sage.
23.
Born, K. E. (1983). International banking in the 19th and 20th centuries. Leamington Spa, UK: Berg Publishers. (Original work published 1977)
24.
Butlin, S. J. , Hall, A. R., & White, R. C. (1971). Australian banking and monetary statistics 1817-1945. (Occasional Paper No. 4A). Sydney: Reserve Bank of Australia.
25.
Calder, K. E. (1993). Strategic capitalism: Private business and public purpose in Japanese industrial finance. Princeton, NJ: Princeton University Press.
26.
Canadian Yearbook. (various years). Ottawa, Canada: Edmond Cloutier, Dominion Bureau of Statistics, Department of Trade and Commerce.
27.
Castronovo, V. (1992). La stratégie du conglomérat: L'Etat banquier et entrepreneur en Italie [The strategy of the holding company: The state as banker and entrepreneur in Italy]. Entreprise et Histoire, 1, 13-25.
28.
Central Bank of Ireland . (various years). Annual report. Dublin: Author.
29.
Clayton, G. (1962). Spain. In R. S. Sayers (Ed.), Banking in Western Europe (pp. 347-382). Oxford, UK: Clarendon.
30.
Conseil National du Crédit . (various years). Rapport annuel [Annual report]. Paris: Author.
31.
Coopey, R. , & Clarke, D. (1995). 3i. Fifty years investing in industry. Oxford, UK: Oxford University Press.
32.
Cottrell, P. (1992). The domestic commercial banks and the city of London, 1870-1939. In Y. Cassis (Ed.), Finance and financiers in European history, 1880-1960 (pp. 39-62). Cambridge, UK: Cambridge University Press.
33.
Deeg, R. E. (1997). Economic globalization and the shifting boundaries of German federalism. Publius, 26(1), 27-52.
34.
Deeg, R. E. (1999). Finance capitalism unveiled: Banks and the German political economy. Ann Arbor: University of Michigan Press.
35.
Deutsche Bundesbank . (1976). Deutsches Geld-und Bankwesen in Zahlen, 1876-1975 [German monetary and banking sectors in numbers]. Frankfurt am Main: Fritz Knapp.
36.
Diamond, D. W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, 166, 393-414.
37.
Diwok, F. (1982). Struktur des Bankwesens in österreich [Structure of the Austrian banking sector]. Frankfurt am Main: Fritz Knapp.
38.
Downs, A. (1957). An economic theory of democracy. New York: Harper & Row.
39.
Dunning, J. H. (1988). Multinationals, technology, and competitiveness. London: Unwin Hyman.
40.
Economic Statistics Monthly. (various years). Tokyo: Bank of Japan.
41.
Egge, A. (1983). Transformation of bank structures in the industrial period: The case of Norway 1830-1914. Journal of European Economic History, 2, 271-294.
42.
Estatística Finanaceiras [Financial Statistics]. (various years). Portugal: Instituto Nacional de Estatística.
43.
European Commission . (1990). Second survey on state aids in manufacturing and other sectors in the European Community. Luxembourg: Author.
44.
European Commission . (1992). Third survey on state aids in the European Community in the manufacturing and certain other sectors. Luxembourg: Author.
45.
European Commission . (1995). Fourth survey on state aid in the European Union in the manufacturing and certain other sectors. Luxembourg: Author.
46.
Central Statistical Office . (various years). Financial statistics. London: Her Majesty's Stationery Office.
47.
Frieden, J. (1991). Invested interests: The politics of national economic policies in a world of global finance. International Organization, 45, 425-452.
48.
Frieden, J. , & Rogowski, R. (1996). The impact of the international economy on national policies: An analytical overview. In R. O. Keohane & H. V. Milner (Eds.), Internationalization and domestic politics (pp. 25-47). New York: Cambridge University Press.
49.
Ganne, B. (1995). France: Behind small and medium-size enterprises lies the state. In A. Bagnasco & C. F. Sabel (Eds.), Small and medium-size enterprises (pp. 115-133). London: Pinter.
50.
Garofalo, P. , & Colonna, D. (1997). Gli anni Cinquanta: Statistiche reali, monetarie e creditizie, versione provvisoria [The fifties: Real, monetary and credit statistics, provisional draft]. Rome: Banca d'Italia.
51.
Garrett, G. (1995). Capital mobility, trade, and the domestic politics of economic policy. International Organization, 49, 657-687.
52.
Gerbi, A. (1954). Italy. In B. Haggott Beckhart (Ed.), Banking systems (pp. 421-515). New York: Columbia University.
53.
Gerschenkron, A. (1962). Economic backwardness in historical perspective: A book of essays. Cambridge, MA: Belknap.
54.
Goldsmith, R. (1969). Financial structure and development. New Heaven, CT: Yale University Press.
55.
Gueslin, A. , & Lescure, M. (1995). Les banques publiques, parapubliques et cooperatives françaises (vers 1920-vers 1960) [Public, parapublic, and cooperative banks in France (circa 1920-circa 1960)]. In Comité pour l'histoire économique et financière de la France (Ed.), Les banques en Europe de l'Ouest de 1920 à nos jours [Banks in Western Europe from 1920 until present days] (pp. 45-57). Paris: Ministère de l'économie et des finances.
56.
Guinnane, T. (1994). A failed transplant: Raffeisen's credit cooperatives in Ireland, 1894-1914. Explorations in Economic History, 31, 38-61.
57.
Guisinger, S. E. (1985). Investment incentives and performance requirements. New York: Praeger.
58.
Haggard, S. , & Lee, C. H. (Eds.). (1995). Introduction: Issues and findings. In Financial systems and economic policy in developing countries (pp. 1-30). Ithaca, NY: Cornell University Press.
59.
Haggard, S. , & Maxfield, S. (1993). Political explanations of financial policy in developing countries. In S. Haggard, C. H. Lee, & S. Maxfield (Eds.), The politics of finance in developing countries (pp. 293-325). Ithaca, NY: Cornell University Press.
60.
Hansen, P. H. (1991). From growth to crisis: The Danish banking system from 1850 to the interwar years. Scandinavian Economic History Review, 39, 20-40.
61.
Hansen, S. A. (1982). The transformation of bank structures in the industrial period: The case of Denmark. Journal of European Economic History, 3, 575-603.
62.
Hu, Y. -S. (1984). Industrial banking and special credit institutions: A comparative study (No. 632). London: Policy Studies Institute.
63.
Hytten, T. (1954). Australia. In B. Haggott Beckhart (Ed.), Banking systems (pp. 3-47). New York: Columbia University.
64.
International Monetary Fund . (1962). International financial statistics. Washington, DC: Author.
65.
Ireland Statistical Abstract. (various years). Dublin: Central Statistical Office.
66.
Johansen, H. C. (1985). Dansk historisk statistik 1814-1980 [Danish historical statistics]. Copenhagen, Denmark: Gyldendal.
67.
Keating, M. (1997). The political economy of regionalism. In M. Keating & J. Loughlin (Eds.), The political economy of regionalism (pp. 17-40). London: Frank Cass.
68.
Knutsen, S. (1995). Phases in the development of the Norwegian banking system, 1880-1980. In Y. Cassis, G. D. Feldman, & U. Olsson (Eds.), The evolution of financial institutions and markets in twentieth-century Europe (pp. 78-121). Aldershot, UK: Scolar Press.
69.
Köver, G. (1991). The Austro-Hungarian banking system. In R. Cameron & V. I. Bovykin (Eds.), International banking, 1870-1914 (pp. 319-344). New York: Oxford University Press.
70.
Kregel, J. A. (1997). The role of 1930s regulations in the development of financial markets in postwar United States, Germany, and Great Britain. In D. J. Forsyth & T. Notermans (Eds.), Regime changes: Macroeconomic policy and financial regulation in Europe from the 1930s to the 1990s (pp. 256-309). Providence, RI: Berghahn Books.
71.
Krugman, P. (1991). Increasing returns and economic geography. Journal of Political Economy, 99(3), 483-499.
72.
Krugman, P. (1993). Lessons of Massachusetts for EMU. In F. Torres & F. Giavazzi (Eds.), Adjustment and growth in the European Monetary Union (pp. 241-260). Cambridge, UK: Cambridge University Press.
73.
Lamoreaux, N. R. (1994). Insider lending: Banks, personal connections and economic development in industrial New England. New York: Cambridge University Press.
74.
Lebovics, H. (1988). The alliance of iron and wheat in the third French republic, 1860-1914. Baton Rouge and London: Louisiana State University Press.
75.
Lescure, M. (1987). L'état, l'investissement et la petite entrreprise: l'expérience des bonifications d'intérêts [The state, investment and small firms: The interest subsidies program] (1937-1939). In P. Fridenson & A. Straus (Eds.), Le Capitalisme Français 19e-20e siècle [French capitalism 19th-20th century] (pp. 225-238). Paris: Fayard.
76.
Lijphardt, A. (1977). Democracy and plural societies. New Haven, CT: Yale University Press.
77.
Loriaux, M. (1991). France after hegemony: International change and financial reform. Ithaca, NY: Cornell University Press.
78.
Loriaux, M. (Ed.). (1997). Capital, the state, and uneven growth in the international political economy. In Capital ungoverned: Liberalizing finance in interventionist states (pp. 208-230). Ithaca, NY: Cornell University Press.
79.
Magee, S. P. (1980). Three simple tests of the Stolper-Samuelson Theorem. In P. Oppenheimer (Ed.), Issues in international economics (pp. 138-153). London: Oriel Press.
80.
Marsh, D. B. (1954). Canada. In B. Haggott Beckhart (Ed.), Banking systems (pp. 119-182). New York: Columbia University.
81.
Martin-Aceña, P. (1995). Spanish banking in the inter-war period. In C. Feinstein (Ed.), Banking, currency, and finance in Europe between the wars (pp. 502-527). Oxford, UK: Clarendon Press.
82.
Maxfield, S. (1990). Governing capital: International finance and Mexican politics. Ithaca, NY: Cornell University Press.
83.
Michel, B. (1976). Banques et banquiers en Autriche au début du 20è siècle [Banks and bankers in Austria at the beginning of the 20th century]. Paris: Presses de la Fondation Nationale de sciences Politiques.
84.
Mitchell, B. R. (1983). International historical statistics: The Americas and Australasia. Detroit, MI: Gale Research Company.
85.
Mitchell, B. R. (1992). International historical statistics: Europe 1750-1988 (3rd ed.). New York: Stockton Press.
86.
Nederlandsche Bank n.v. (various years). Annual report. Amsterdam: Author.
87.
Nederlandsche Bank . (1987). Financiële instellingen in Nederland 1900-1985: balansreeksen en naamlijst van handelsbanken [Financial institutions in the Netherlands 1900-1985: Balance sheets and list of commercial banks] (DNB Statistische Cahiers No. 2). Amsterdam: Author.
88.
New Zealand Official Yearbook. (various years). Wellington, UK: Department of Statistics.
89.
Nunes, A. B. , Bastien, C., & Nuno, V. (1994). Caixa Econêmica Montepio Geral: 150 Anos de Histoêria 1844-1994 [Caixa Econêmica Montepio Geral: 150 years of history 1844-1994]. Lisboa, Portugal]: Caixa Econêmica Montepio Geral.
90.
Nygren, I. (1983). Transformation of bank structures in the industrial period: The case of Sweden 1820-1913. Journal of European Economic History, 1, 29-68.
91.
Official Year Book of Australia. (various years). Canberra: Australian Bureau of Statistics.
92.
Organization for Economic Cooperation and Development. (OECD) . (various years). Financial statistics. Methodological supplement. Paris: Author.
93.
Organization for Economic Cooperation and Development. (OECD) . (various years). National accounts. Paris: Author.
94.
Organization for Economic Cooperation and Development. (OECD) . (1989). International direct investment and the new economic environment. Paris: Author.
95.
Organization for Economic Cooperation and Development. (OECD) . (1992). Industrial support policies in OECD countries 1986-1989. Paris: Author.
96.
Organization for Economic Cooperation and Development. (OECD) . (1996a). OECD reviews of foreign direct investment. Paris: Author.
97.
Organization for Economic Cooperation and Development. (OECD) . (1996b). Public support to industry: Report by the Industry Committee to the Council at Ministerial Level. Paris: Author.
Pérez, S. (1997). “Strong states” and “cheap” credit: Economic policy strategy and financial regulation in France and Spain. In D. J. Forsyth & T. Notermans (Eds.), Regime changes: Macroeconomic policy and financial regulation in Europe from the 1930s to the 1990s (pp. 169-220). Providence, RI: Berghahn Books.
100.
Polsi, A. (1996). Financial institutions in nineteenth-century Italy: The rise of a banking system. Financial History Review, 3, 117-137.
101.
Porter, M. E. (1990). The competitive advantage of nations. London: Macmillan.
102.
Quinn, D. P. (1997). The correlates of change in international financial regulation. American Political Science Review, 91(3), 531-552.
103.
Ritzmann, F. (1973). Die Schweizer Banken [The Swiss banks]. Bern, Switzerland: Paul Haupt.
104.
Rogowski, R. (1989). Commerce and coalition. Princeton, NJ: Princeton University Press.
105.
Rogowski, R. (1997). How economies-of-scale trade affects domestic politics (Working Paper No. 13). Los Angeles: University of California, Los Angeles, Center for International Studies.
106.
Rosenbluth, F. M. (1989). Financial politics in contemporary Japan. Ithaca, NJ: Cornell University Press.
107.
Sabel, C. F. (1989). Flexible specialisation and the re-emergence of regional economies. In P. Hirst & J. Zeitlin (Eds.), Reversing industrial decline? Industrial structure and policy in Britain and her competitors (pp. 17-70). Oxford, UK: Berg.
108.
Sartori, G. (1976). Parties and party systems: A framework for analysis. New York: Cambridge University Press.
109.
Saxenian, A. (1994). Regional advantage: Culture and competition in Silicon Valley and Route 128. Cambridge, MA: Harvard University Press.
Sheppard, D. K. (1971). The growth and role of UK financial institutions 1880-1962. London: Methuen.
112.
Shonfield, A. (1965). Modern capitalism. Oxford, UK: Oxford University Press.
113.
Société des nations . (1931). Mémorandum sur les banques commerciales 1913-1929 [Memorandum on commercial banks]. Geneva, Switzerland: Service d'Etudes Economiques.
114.
Statistical Yearbook of Finland. (various years). Helsinki: Central Statistical Office.
115.
Statistical Abstract of the United States. (various years). Washington, DC: U.S. Bureau of the Census.
116.
Statistisches Jahrbuch für die Bundesrepublik Deutschland [Statistical yearbook of the German Federal Republic]. (various years). Stuttgart, Germany: Kohlhammer.
Statistisk Arsbok för Sverige [Statistical yearbook of Sweden]. (various years). Stockholm, Sweden: Statistiska Centralbyran.
119.
Storper, M. (1995). The resurgence of regional economies, ten years later: The region as nexus of untraded interdependencies. European Urban and Regional Studies, 2(3), 191-221.
120.
Sveriges Riksbank . (1971). Statistisk Bilaga till Riksbankens Förvaltningsberättelse [Statistical appendix to the annual report of the Bank of Sweden]. Stockholm, Sweden: Author.
121.
Tamaki, N. (1995). Japanese banking: A history, 1859-1959. Cambridge, UK: Cambridge University Press.
122.
Thomas, K. P. (1997). Capital beyond borders: State and firms in the auto industry, 1960-1994. New York: St. Martin's Press.
123.
Thunholm, L. -E. (1954). Sweden. In B. Haggott Beckhart (Ed.), Banking systems (pp. 657-692). New York: Columbia University.
124.
United Nations . (various years). Yearbook of national accounts statistics: Vol. 1. New York: Author.
125.
United States Bureau of the Census . (1975). Historical statistics of the United States: Colonial times to 1970. Washington, DC: Author.
126.
Van Molle, L. (1995). Les banques parapubliques en Belgique [Para-public banks in Belgium]. In Maurice Lévy-Leboyer (Ed.), Les banques en Europe de l'Ouest de 1920 à nos jours [Banks in Western Europe from 1920 until present days] (pp. 75-94). Paris: Ministère de l'économie et des Finances.
127.
Verdier, D. (1995). The politics of public aid to private industry: The role of policy networks. Comparative Political Studies, 28(1), 3-42.
128.
Verdier, D. (1998). Domestic responses to capital market internationalization under the Gold Standard, 1870-1914. International Organization, 52(1), 1-28.
129.
Verdier, D. (1999). Domestic responses to free trade and free finance in OECD countries. Business & Politics, 1(3), 279-316.
130.
White, R. C. (1973). Australian banking and monetary statistics 1945-1970 (Occasional Paper No. 4B). Sydney: Reserve Bank of Australia.
131.
Woo, J. -E. (1991). Race to the swift: State and finance in Korean industrialization. New York: Columbia University Press.
132.
Zysman, J. (1983). Governments, markets, and growth: Financial systems and the politics of industrial change. Ithaca, NY: Cornell University Press.
