Direct finance in the Dutch Golden Age

Oscar Gelderblom*, Joost Jonker, Clemens Kool

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


This article analyses private credit operations in amsterdam in the seventeenth century to explain the absence of deposit banks. The financial system was highly segmented and a combination of declining business margins and narrow interest rate spreads cut the scope for deposit taking. Moreover, merchants had easy access to credit in the form of short-term loans which could be easily rolled over, or replaced at will. This technique worked well because a market developed providing key functions to control risk and price loans accordingly.
Original languageEnglish
Pages (from-to)1178-1198
JournalEconomic History Review
Issue number4
Publication statusPublished - Nov 2016
Externally publishedYes


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