South-Serbian bank from Kosovska Mitrovica

• Main Author: Becić Ivan M.
• Format: Article
• Language: English
• Published: Institute of Serbian Culture Priština, Leposavić 2015-01-01
• Series: Baština
• Subjects: south-serbian bank; the bank 'old serbia'; board of directors; abuses; economic crisis; bankruptcy
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0353-9008/2015/0353-90081539143B.pdf

Chronical lack of capital for the needs of the economy in the Kingdom of Yugoslavia was compensated by the foundation of local cash bureaux. Small-business entrepreneurs of poor area from financial point of view tried to get the necessary funds for their own business. So, cash bureaux had the character of co-operatives whose basic aim was meeting financial needs of their own stockholders. Just for these reasons, in Kosovska Mitrovica in 1922 South-Serbian bank was founded. Not much too strong, with great ambitions of its leading stockholders, this institution tried to be leading financial institution with modest capital in its area and prominent member of a serious group of Kosovo-Metohian banks, the Bank of 'Old Serbia' in Skopje. The need for favourable credits and possibility to reach them in an easy and illegal way prompted members of the Board of Directors of South- Serbian bank to turn this institution into the one which, first of all, met their needs. This approach to business led the Bank in the situation it could not do business normally. Thus, from 1924 to 1926 a real 'small war' had been led to replace members of the Board of Directors who were doing abuses. The Bank managed to overcome crisis thanks to the assistance of the group of the Bank 'Old Serbia' and to do business in a stable manner until the bank crisis had broken out. Nevertheless, the economic crisis deepening, and measurements Yugoslav governments had taken in order to protect essential society stratum, peasantry, disabled a successful business activity of South-Serbian bank. Business with loss meant the impoverishment of bank's equity and growing dependence from the support of the Bank 'Old Serbia'. Having insight into the fact successful business was disabled, members of the Board of Directors requested in 1936 out of bankruptcy liquidation. Although there had been the obstruction of the part of the Board of Directors which were delegated from the Bank 'Old Serbia', which in such situation had a stable income, the bank was liquidated in 1938.