Unlimiting Unlimited Liability : Legal Equality for Swedish Banks with Alternative Shareholder Liability Regimes (1897-1903)
This paper examines the aftermath of the 1897 Riksbank Act in Swedish banking. The Act placed banks with unlimited and limited liability upon equal footing, removing the note issuing privileges of the former. We consider whether changes in risk preferences occurred subsequent to the Act, or whether extended liability was a sufficient deterrent. We conclude that when legal differences were removed,
