The progressive secularization of credit in New Granada and the antecedents of commercial banking in Colombia (1835–1863)

Abstract

Abstract In the initial years of the republican era, New Granada (now Colombia) underwent a profound transformation in its sources and mechanisms of credit, transitioning from the predominance of a spiritual economy during the colonial period to a secular system that gradually evolved into a banking framework by the late nineteenth century. Starting in the mid-1830s, influenced by liberal ideology, a combination of factors catalysed this evolution, including the liberalization of interest rates, the establishment of savings institutions, and intellectual discourse surrounding the need to organize a formal banking system. Despite several attempts to establish an institutionalized financial framework, only in the 1860s and 1870s did the federal government ultimately foster the formation of regional banks. This article serves as an introduction to comprehend the origins and progression of the Colombian banking system.