Recent evidence on the history of prewar European commercial banks reveals a fair degree of similarity in lending practices, especially the widespread provision of short-term credits - just as in England and Wales. However, English banks did not own the equity of their industrial clients and, in this sense, their practices contrast with German and other universal banks. But England was nor the only country in western Europe not ro develop universal banking and, in a number of important respects, this was a strength. The universal banks' provision of investment bank services reflected financial marker deficiencies and relative institutional immaturity. In addition, the direct support they offered to industrial clients was highly selective and discriminatory. In contrast, English bank practice was much more open and even-handed between industrial customers. Moreover, the greater liquidity of English bank balance sheets imparted a greater degree of stability which had broad benefits for the whole economy.
