Baština (Jan 2015)
The Vučitrn's credit bank
Abstract
Due to the strong conjectures which governed after the war, and enlarged market in new state there was an expansion in enterprises foundation. Intensive enterprises foundation was the sign of economic upswing, but the problem being emerged in the Kingdom of Serbs, Croats and Slovenians was that such expansion had been exceeding funds which financial circles in the country had been disposed of. The largest number of economic subjects was founded during 1922, and one of them was the Vučitrn's credit bank. That was a financial institution with all characteristics which had had small cash offices. Basic capital of the Vučitrn's credit bank was one million dinars, and insufficient economic development of the area in which it emerged and operated influenced the Bank had been unable to take into account greater influx of cash based on the bet of savings. The Vučitrn's credit bank had entered the concern of the Bank 'Old Serbia' in 1923, and this institution became the bank's main creditor. 'The golden period' of the Vučitrn's credit bank operations lasted until 1931. Thanks to high interest rates the bank managed to operate stably, and provide its shareholders with modest, but stable dividends. The outbreak of bank's crisis in the Kingdom of Yugoslavia had catastrophic consequences for the private bank's system. The Vučitrn's credit bank could not be immediately on the attack since its majority of clients were not farmers, but economic depression during the 30s of the 20th century precluded normal operation of banks. Although sources of the last years of the Vučitrn's credit bank work were not preserved, the capital decrease, which had been carried out by the Bank in 1940, speaks clearly they were not successful.
