A Brief History of Investment Banking from Medieval Times to the Present
Oxford Handbook of Banking and Financial History, Edited by Youssef Cassis, Catherine Schenk, and Richard Grossman, 2016
40 Pages Posted: 16 Nov 2014 Last revised: 9 Aug 2016
Date Written: November 12, 2014
Investment banking taken generally to mean the financing of long-term capital needs, came into being with the merchants of medieval trade routes. In almost all developed economies of the world, even those developing late in the 19th century, investment bankers emerged from merchant roots. The provision of investment banking services has come from a variety of institutions over time and across countries. Products and services have evolved to include complex, often derivative, securities; and the legal regulation of investment banking has often changed abruptly, particularly in the last 100 years. Thus, even well-known investment banking names that have endured over the centuries bear little resemblance to their ancestors.
Keywords: Investment banking, merchant bank, universal banking, law and finance
JEL Classification: G2, K22, N1, N2, O1, O4
Suggested Citation: Suggested Citation