Liquidity and solvency problems during the banking crises of the National Banking Era

Jan Körnert

No 05/2006, Wirtschaftswissenschaftliche Diskussionspapiere from University of Greifswald, Faculty of Law and Economics

Abstract: Liquidity and solvency are conditional for banks' existence, They are endangered during banking crises. Since the banking crises of the National Banking Era in the USA are no exceptions, the question remains whether the foundation of the Federal Reserve System offered an adequate solution to the relevant problems of the era, The study concludes that the introduction of the Federal Reserve System offered a good chance to solve the structural problems. On the other side, the Federal Reserve System would not have been in a position to come to the aid of troubled banks in the crises of 1890, 1873 and 1884 - either due to solvency problems or runs by depositors.

Keywords: Banking Crises; National Banking Era; Liquidity; Solvency; Federal Reserve System (search for similar items in EconPapers)
JEL-codes: G15 G21 G33 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:grewdp:052006

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