The Employment Of Modern Financial Tools In The Exercise Of Historical Analysis: The Case Of The National Bank Of Greece (1842-1941)

Abstract

The purpose of this paper is to show how we can use modern financial tools in the exercise of historical analysis. In other words, this article is the first one, which illuminates the intersection between the two different economic disciplines of Financial Analysis and Economic History. This is accomplished by shedding some light in the performance of the biggest Greek bank during the first hundred years of its operation; that is, the period 1842-1941. The main conclusions of the analysis is that the National Bank experienced a quite high (i.e. above 20%) return on equity during the period 1920-27, while its return on assets was quite high (i.e. above 2%) during the period 1843-89. Last but not least, the National Bank utilised financial leverage heavily to increase return on equity during the period 1913-27.