We review the bank regulatory and supervisory practices of the National Banking Era and argue that their primary focus was both micro- and macro-prudential. Regulatory limits on real estate lending and large required cash holdings focused on systemic risk issues and successfully limited serious...

Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression. New data on interbank connections reveal that banks were much more likely to close when their correspondents closed. Further, after the Federal Reserve was established,...

Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression. New data on interbank connections reveal that banks were much more likely to close when their correspondents closed. Further, after the Federal Reserve was established, banks'...