In this chapter I provide an overview of lending in early modern Japan (1600–1868). Following this, I discuss three types of financial products offered by Buddhist temples and convents: direct loans, loans from endowments, and mutual financing associations. Throughout this, we see how Buddhist loans drew from and, if handled well, had the potential to strengthen existing connections between temples and others. If handled poorly, they could threaten these connections. We also see how Buddhist lending often mirrored loans offered by non-clerical sources. In other words, these loans were often a way of earning money for the temples (or in some cases, the non-clerical investors), and were not morally any different from other loans of the time in terms of lending practices or the potential recipients of loans.

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Banking Before Banks in Early Modern Japan: Buddhist Temple Finance

  • Matthew Mitchell

摘要

In this chapter I provide an overview of lending in early modern Japan (1600–1868). Following this, I discuss three types of financial products offered by Buddhist temples and convents: direct loans, loans from endowments, and mutual financing associations. Throughout this, we see how Buddhist loans drew from and, if handled well, had the potential to strengthen existing connections between temples and others. If handled poorly, they could threaten these connections. We also see how Buddhist lending often mirrored loans offered by non-clerical sources. In other words, these loans were often a way of earning money for the temples (or in some cases, the non-clerical investors), and were not morally any different from other loans of the time in terms of lending practices or the potential recipients of loans.