Savers and the Risk of Deposit Banking

The issue to be discussed is how financial organizations manage to attract savings. The chapter shows that deposit banking in Sweden was introduced in the savings banks and for many decades functioned with restrained legislation and control of the state. However, personal trustworthiness and founders’ network had limits in building and supporting legitimacy. When deposit banking increased during the second half of the nineteenth century, bank regulations were introduced to secure account holders’ deposits.