The Institutional Foundations of Successful Public Borrowing—Models of Public Banks in Habsburg Austria and Habsburg Naples 1700–1800

Clemens Jobst

Chapter Chapter 11 in Financial Innovation and Resilience, 2018, pp 243-268 from Palgrave Macmillan

Abstract: Abstract This chapter provides a history of public banks in the Habsburg monarchy through the lens of their role as a commitment device in the issuance of public debt. Comparing the Vienna-based Banco del Giro (1703) and Universalbankalität (1714), as well as the Banco di San Carlo (1726/1729) created during the brief Austrian Habsburg rule in Naples between 1707 and 1735, all three failed eventually because the public deemed government influence excessive. In Naples, moreover, the public clearly preferred the existing public banks. Only the Wiener Stadtbanco (Vienna City Bank) founded in 1706 proved successful because it evolved over time to maintain its independence from the monarchy. The Napoleonic Wars, however, overwhelmed it and the monarchy’s finances. The Austrian National Bank replaced it in 1816.

Keywords: Wiener Stadtbanco; Provincial Estates; Municipal bank; Public debt; Absolutist monarchy; Central bank independence (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-90248-7_11

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DOI: 10.1007/978-3-319-90248-7_11

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