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Socialization of finance



HISTORY OF CZECHOSLOVAK CURRENCY.

The Košice government's program placed the monetary and credit system "under general state equipment and in the service of rebuilding the national economy." In this way, he significantly determined the direction towards the gradual socialization of the financial sector - the nationalization of banks and central directive management.

- The first step was the abolition of the Czech bank UNION, the Czech Discount Bank and German financial institutions. At the same time, branches of the Reich-German banks and credit unions at the border were abolished.

- Prague Credit Bank and Legionbanka were restored and canceled during the German occupation.

- National administrations have been introduced in large banks.

- The preparation for nationalization was the reduction of the number of banks and their merger to eight banks in the Czech lands and six banks in Slovakia.

- Nationalization Decree of the President of the Republic of 24 October 1945

- It was decided to transform large banks into national enterprises.

Preparations for a radical transformation of the banking system to the Soviet model continued. In July 1946, the National Assembly, at the suggestion of the Communist Party of Czechoslovakia, adopted a two-year economic renewal plan for the years 1947-1948, the so-called two-year plan. He aimed at socializing the economy and concentrating nationalized banks. Three banks remained in the Czech lands (Živnobanka, Legiobanka, Moravská banka) and two banks in Slovakia (Slovenská banka and Tatrabanka). They were entrusted with the provision of operating loans. The Czechoslovak Discount Institute and the Provincial Bank have so far provided investment loans.
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