As the Ottoman state attempted to modernize its infrastructure and army in response to threats from the outside, it also opened itself up to a different kind of threat: that of creditors. Indeed, as the historian Eugene Rogan has written, "the single greatest threat to the independence of the Middle East" in the nineteenth century "was not the armies of Europe but its banks." The Ottoman state, which had begun taking on debt with the Crimean War, was forced to declare bankruptcy in 1875. By 1881, the Ottoman Empire agreed to have its debt controlled by an institution known as the Ottoman Public Debt Administration, a council of European men with presidency alternating between France and Britain. The body controlled swaths of the Ottoman economy, and used its position to insure that European capital continued to penetrate the empire, often to the detriment of local Ottoman interests.

What historian wrote that banks were the single greatest threat to mid-east independence?