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May/June 1998, 
Vol. 80, No. 3
Posted 1998-05-01

Banking Systems and Economic Growth: Lessons from Britain and Germany in the Pre-World War I Era

by Caroline Fohlin

This article uses aggregate bank balance sheet data to investigate systematic differences in the financial makeup and activities of universal and specialized banks. By explicitly comparing British and German banks, it takes steps toward quantifying the possible disparity in financial-system growth effects over the decades leading up to World War I.