Baština (Jan 2016)
Kosovo bank in Mitrovica between two world wars
Abstract
The liberation of Kosovo and Metohija in 1912 had more meanings for that area including the establishment of financial institute based on shares and Kosovo bank from Mitrovica. The beginning of the World War I interrupted the work of these institutions, while Kosovo bank was among first ones to reestablish its work on Serbian territory after the war. The conditions in the first two post-war years could not provide adequate business work for this bank, so it mostly dealt with trade. The need for post-war rebuilding influenced investment politics of banks which invested in economic firms. The Kosovo bank invested its capital in a mine company called 'Kosovo', sawmills, commission and supplying business. These investments did not give expected results, while the bank either lost or immobilized almost all its capital. This kind of bank politics was the source of many confrontations and conflicts within the institution, and thus in 1925 the Bank could not meet its obligations. The Bank was saved from bankruptcy by a group of businessmen, and in this way clients and creditors were paid off. At the same time, in this way, the owner transformation was done. The number of stockholders was drastically smaller and the capital was in possession of a few large stockholders. By the end of 20-s, The Bank normalized its work and further work continued in conditions of the Great economic crisis.
