Endowed Charities: The Microfinance System Used by Charitable Institutions in Catalonia (Eighteenth Century)

This chapter offers insights into the intricate dynamics of microcredit provision by different charitable institutions in Catalonia during the eighteenth century and its impact on both borrowers and lenders, shedding light on the broader historical context of financial practices and social support systems. It discusses how these institutions managed their capital and used microcredits for precarious livelihoods and also invested important sums in public debt and lent to municipalities, reflecting the hospital’s role in regional finance. The study also investigates the financial tools employed particularly perpetual mortgage loans known as censals. It examines the impact of interest rate reductions and changes in economic conditions on the demand for such loans. On the other hand, the text delves into the operations of endowed charities, or causapia, which were created through legacies and aimed to provide credit, mainly small loans in rural areas. It offers insights into the historical significance, economic intricacies and their role in shaping societal dynamics and financial practices.