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We create new datasets on capital flows and bank balance sheets to document how the Spanish crisis of the mid-1860s fits the main characteristics of a twin crisis. Next,we describe the particular banking system of Spain, characterized by the coexistence of the Bank of Spain with multiple local banks of issue and a number of joint-stock banks (sociedades de creŽdito).We analyze the microeconomic behavior of each bank and find that, overall, the banks of issue performed well during the crisis. In contrast, the crisis had a dramatic impact on the sociedades, most of which suspended payments.
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