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Financial crises have had a decisive influence on banking regulations in Spain. During the mid-19th century the publication of the financial statements of banks was considered key to the stability of the financial system. All new joint stock banking companies were to publish their statements in the Madrid Gazette in return for the privilege of limited liability. Similar obligations were placed on issuing banks. The copious publication of financial statements coincided with a period of financial prosperity. However, the crises that followed from 1864 to 1868 led to a reduction in the official publication of statements. This paper is concerned with an early response to crises in financial reporting. The study focuses on the relationship between the publication of accounting statements by banks and the GDP in Spain during the mid-19th century. The results suggest that the frequency of publication of financial statements may be an indicator of economic performance.

A Ab bs st tr ra ac ct t The Spanish economic crisis of 1847-1848 brought about changes to the regulation of joint stock companies. Following their implication in the financial crisis, rules were introduced which required the inspection of the accounting records of companies and the disclosure of their financial statements. The intention of legislators was to reduce the number of limited companies and offer some protection to creditors and other parties who transacted with them. The new legislation was particularly significant in its effect on the confidentiality of company accounts. This paper explains how the Spanish government overestimated the role played by limited companies in the crisis and reacted by passing strict legislation which, for general companies, was a major break from the Commercial Code of 1829. The paper also explores aspects of the implementation of the statute passed in 1848.

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