Banking in Crisis
The Rise and Fall of British Banking Stability, 1800 to the Present

A full account of the rise and fall of British banking stability which sheds new light on why banking systems crash.

John D. Turner (Author)

9781107030947, Cambridge University Press

Hardback, published 10 July 2014

266 pages, 10 b/w illus. 41 tables
22.9 x 15.2 x 1.6 cm, 0.54 kg

'Turner has written a timely and admirable book, one that belongs on the shelf (or in the Kindle) of all financial historians, and all policymakers involved in formulating regulations for financial institutions.' Hugh Rockoff, Journal of Economic History

Can the lessons of the past help us to prevent another banking collapse in the future? This is the first book to tell the story of the rise and fall of British banking stability over the past two centuries, shedding new light on why banking systems crash and on the factors underpinning banking stability. John Turner shows that there have only been two major banking crises in Britain during this time - the crises of 1825–6 and 2007–8. Although there were episodic bouts of instability in the interim, the banking system was crisis free. Why was the British banking system stable for such a long time? And, why did the British banking system implode in 2008? In answering these questions, the book explores the long-run evolution of bank regulation, the role of the Bank of England, bank rescues and the need to hold shareholders to account.

Acknowledgements
1. Introduction: holding shareholders to account
2. Banking instability and risk shifting
3. The evolution of British banking structure and stability since 1800
4. Major and minor British banking crises since 1800
5. Banking stability, shareholder liability and bank capital
6. Averting or creating banking crises? The lender of last resort and bank rescues
7. Banking stability and bank regulation
8. Restoring banking stability: policy and political economy
Bibliography
Index.

Subject Areas: Finance [KFF], Economic history [KCZ], History [HB]