Early Deposit Banking

Dartmouth College, Department of Economics Working Paper No. 99-03

30 Pages Posted: 9 Mar 1999

See all articles by Meir Kohn

Meir Kohn

Dartmouth College - Department of Economics

Date Written: February 1999


This paper describes the development of the deposit bank in Europe to 1600. Deposit banks allowed customers to make payments by transferring deposits on the books of the bank rather than by settling in coin. The paper describes how such payments were made and what kinds of transactions they were used for. Deposit banks developed into financial intermediaries, and the paper examines their liabilities, their assets, the methods they used to manage liquidity and risk, and the regulation to which they were subject. The authorities responded to increasingly frequent failures of deposit banks by establishing public banks.

JEL Classification: G21, N23

Suggested Citation

Kohn, Meir G., Early Deposit Banking (February 1999). Dartmouth College, Department of Economics Working Paper No. 99-03, Available at SSRN: https://ssrn.com/abstract=151848 or http://dx.doi.org/10.2139/ssrn.151848

Meir G. Kohn (Contact Author)

Dartmouth College - Department of Economics ( email )

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