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Financing regions and industrial clusters in the nineteenth century

Newton, L. ORCID: and Barnes, V. (2022) Financing regions and industrial clusters in the nineteenth century. In: Wilson, J. F., Corker, C. and Lane, J. (eds.) Industrial Clusters: Knowledge, Innovation Systems and Sustainability in the UK. Routledge, London. ISBN 9780367465223 (In Press)

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This chapter engages critically with some of the propositions in Labour Party policy concerning the creation of regional banks by using examples from the past. A national bank network emerged from Britain’s late-nineteenth century merger movement. We examine the regional banking network that existed prior to this moment in time. The chapter considers the system of joint-stock banks in England and Wales in the period 1826 to 1844, when these institutions were owned by local individuals. It investigates whether banks in this environment were – as Milliband, Corbyn, McDonnell and Bushell suggest – embedded within local societies and commercial communities, and more willing to lend and thus support industrial growth. It asks: were English banks motivated, and their operations limited, by a sense of local civic duty? Or were they restrained by logistical costs, information asymmetries and a lack of knowledge about distant markets? To what extent were these organizations supporting their local economies through sustainable and long-term lending? How did they balance the demand for credit on one hand and the risk of failure and lending too much on the other?

Item Type:Book or Report Section
Divisions:Henley Business School > International Business and Strategy
ID Code:102671

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