Native Capital: Financial Institutions and Economic Development in São Paulo, Brazil, 1850-1920This book studies the development of banks and stock and bond exchanges in São Paulo, Brazil, during an era of rapid economic diversification. It assesses the contribution of these financial institutions to that diversification, and argues that they played an important role in São Paulo's urbanization and industrialization by the start of the twentieth century. It finds that government regulatory policy was important in limiting and shaping the activities of these institutions, but that pro-development policies did not always have their intended effects. This is the first book on São Paulo's famous industrialization to identify the strong relationship between financial institutions and São Paulo's economic modernization at the turn of the century. It is unique in Brazilian economic history, but contributes to a body of literature on financial systems and economic change in other parts of the world. |
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... bankers, for example, dealt not in loans but in contracts or letters of exchange. The business transactions we would call “credit” became recast as a simple agreement between two parties. Moreover, the Church defined usury as any ...
... bankers did not feel pressured to form universal banks.45 The geographical diversity of a network can serve to diversify a bank's risk because it reduces an individual branch's vulnerability to a downturn in local economic conditions ...
... Bankers, predominantly foreign, were a risk-averse lot, lending short-term capital to wellknown citizens. With the explosion of the coffee economy after 1880, however, bankers' practices became strained by liquidity and credit demands ...
... unwilling to lend at the long term and argues that bankers were quite rational in their reticence: investment banks were not profitable. Favorable legislation could not make up for decades of ambivalence about domestic economic.
... bankers were not much interested in investment banking, they were more than happy to continue offering their commercial banking products. In fact, the sector underwent significant expansion in size and in geography as a result of the ...
Contents
Brokers and Business Finance under the Empire | |
The Republican Revolution and the Rise of | |
The Republican Revolution and the Failure | |
Commercial Banking and the Business | |
Conclusions | |
NOTES | |
BIBLIOGRAPHY | |
INDEX | |