This paper examines the effect of bank expansion on credit access and terms of credit in early America. The bank records from Plymouth Bank, Massachusetts and the Census records provide detailed information on borrowers, endorser, types and terms of loans, and borrower characteristics. The results show that the introduction of new banks did broaden credit access. However, after competition was introduced, the Bank focused more on short-term bills of exchange. In other words, the Bank shifted its emphasis from long-term accommodation paper to short-term bills of exchange.
I would like to thank Gavin Wright, who provided useful advices on the project. This paper has benefitted tremendously from the constructive comments of the editor and the referee. I would also like to thank Peter Rousseau and participants in the Economic History Association sessions at 2011 American Economic Associations Meetings in Denver, CO. All errors are mine.
Wang, T. (2016), "Entry, Competition, and Terms of Credit in Early American Banking", Research in Economic History (Research in Economic History, Vol. 32), Emerald Group Publishing Limited, pp. 363-386. https://doi.org/10.1108/S0363-326820160000032006Download as .RIS
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