 Risk Management, Credit and the Working of Merchants’ Networks in Early Modern BankingDaniel Velinov ()
A chapter in Decision Taking, Confidence and Risk Management in Banks from Early Modernity to the 20th Century, 2017, pp 235-267 from Palgrave Macmillan Abstract: Abstract This chapter contributes to the debate on the organisation of long-distance trade in early modern Europe. It challenges the commonly attributed importance of familial, city-based, regional, national, ethnic or religious affiliations to generating trust, credit and risk mitigation. Based on an analysis of the exchange business of the Antwerp banker de la Bistrate and of his European correspondents in the seventeenth century, the crucial importance of commission trading for the structuring of early modern trade and trade relations is stressed. It is demonstrated that risk mitigation relies on procedures that are inherent to the system of commission trading. The notions of credit and reputation relate intrinsically to the principal-agent relationship for which this chapter provides a new understanding with respect to the commonly accepted model. Keywords: Parisian Agent; Expiry Date; Parisian Firm; Ethnical Affiliation; Early Modern Period (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-42076-9_11 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-42076-9_11 Access Statistics for this chapter More chapters in Palgrave Studies in the History of Finance from Palgrave Macmillan |
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