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Bank Liquidity Transformation and Collateral Frameworks: Lessons from 1682
Södertörn University, School of Historical and Contemporary Studies, History.ORCID iD: 0000-0001-9261-0700
Deutsche Bundesbank, Germany.ORCID iD: 0000-0001-6727-4645
Technische Universität Berlin, Germany.ORCID iD: 0000-0003-2203-270
2025 (English)Report (Other academic)
Abstract [en]

Central bank collateral frameworks and the liquidity transformation they allow for play important roles for financing long term economic projects (and thereby economic growth) while preserving financial stability. To shed light on early central bank collateral frameworks, this note analyses a document of the Riksens ständers lånebank of 1682 which pledges real estate to serve as collateral for a loan of the Riksbank to the farmer Olof Olofsson. A transcription and translation are provided and the document is analyzed in the context of the 17th century operations, balance sheet, and mandate of the Riksens ständers lånebank and the related literature. We recall the role of central bank credit to private debtors in early central banking, and that, contrary to some prominent views, government financing was more the exception than the rule as key reason to establish and operate central banks before 1700. We also derive lessons for today's central bank collateral frameworks and their role in liquidity transformation.

Place, publisher, year, edition, pages
Frankfurt: IBF - Institut für Bank- und Finanzgeschichte e.V. , 2025. , p. 16
Series
IBF Paper Series, ISSN 2510-537X ; 04-25
Keywords [en]
Central bank collateral, early central banking, central bank operations
National Category
History
Research subject
Historical Studies
Identifiers
URN: urn:nbn:se:sh:diva-58508OAI: oai:DiVA.org:sh-58508DiVA, id: diva2:2018832
Part of project
Monetary policies and practices: money and stateformation in early modern Sweden, Riksbankens JubileumsfondAvailable from: 2025-12-04 Created: 2025-12-04 Last updated: 2025-12-05Bibliographically approved

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Pihl, Christopher

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • harvard-anglia-ruskin-university
  • apa-old-doi-prefix.csl
  • sodertorns-hogskola-harvard.csl
  • sodertorns-hogskola-oxford.csl
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf