The Penetration of European Banking into Ottoman Lands During the Second Half of the Nineteenth Century

We discuss the development of 'modern' banking in core Ottoman lands during the latter half of nineteenth century. We present evidence showing considerable local financial sophistication prior to European entry around 1856. Drawing on the 'constitutional commitment' literature we...

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Bibliographic Details
Published in:Journal of Balkan and Near Eastern studies 2023-05, Vol.25 (3), p.322-339
Main Author: Davutyan, Nurhan
Format: Article
Language:English
Subjects:
19th century
Banking
Capital markets
Dominance
International relations
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Summary:We discuss the development of 'modern' banking in core Ottoman lands during the latter half of nineteenth century. We present evidence showing considerable local financial sophistication prior to European entry around 1856. Drawing on the 'constitutional commitment' literature we maintain its success was related to enhanced security of life and property European financial ties provided to Ottoman decision-makers. We argue international relations substituted for missing domestic institutions. We describe the conflictual process ending around 1900, with the domination of Ottoman capital markets by European banks, particularly the Banque Impériale Ottomane, or BIO. The competition pitting BIO against ethnically based local banking networks opens a different window into the economic and fiscal occurrences of that epoch. We consider the role of London based 'South African Gold Panic of Autumn 1895' and its interactions with the unfolding 'Armenian Crisis' of Istanbul and Anatolia in bringing about this final outcome.
ISSN:1944-8953
1944-8961
DOI:10.1080/19448953.2022.2143853