2009 Fiscal Year Final Research Report

The Corporate Governances and Strategies of British Joint Stock Banks in the early 20^<th> century

Research Project

Project/Area Number	19730236
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Economic history
Research Institution	Yamaguchi University
Principal Investigator	KOGA Daisuke Yamaguchi University, 経済学部, 准教授 (50345857)
Project Period (FY)	2007 – 2009
Keywords	イギリス / 金融史 / 株式銀行
Research Abstract	The aim of this study is to seek answers how the British Giant Banks survived long harsh eras of the British economic decline. Especially, we focus on the corporate governances and strategies of banks in the early 20^<th> century. Through the research of untouched banks' historical records, we find three characteristic points as answers. First, the chairmen of the British Giant Banks and their few selected companies managed their banks powerfully and exerted for harmonies among absorbed banks and good performances of their banks. Second, though the Banks' leaders desired to extend their foreign businesses, their intentions were not succeeded. The main source of bank's profits was from domestic finances towards UK industries before the First World War. Third, British Giant Banks did not depend on Bank of England (the Central Bank). They struggled with Bank of England for the monetary policies on bank rates, reserves, and foreign exchanges. As a result, British Banks sought for their own independent management and interests to survive without central bank's help.