The Bank Office of the Ministry of Finance and Questions of the Origin of the Czechoslovak National Bank (1918-1926)
|Author:||Mgr. Lenka Trojanová|
|Year:||2004 - winter|
|Leaders:|| doc. Ing. Karel Půlpán CSc.
|Work type:|| Economic Policy
|Awards and prizes:|
|Abstract:||The Bank Office of the Ministry of Finance (BOMF) was founded in 1919 after the establishment of the independent Czechoslovak Republic. After the monetary separation from the Austro-Hungarian monarchy it was necessary to establish its own bank of issue which would administer the national currency. At that time, however, the conditions that would make the establishment of the bank of issue possible, did not exist yet. Consequently, the Bank Office was founded. In spite of being a state institution, it temporarily functioned as a bank of issue -- it administered the currency, assumed the role of the central exchange office, redeemed the treasury note debt, amassed the gold reserve for the future bank of issue, and secured all functions, duties and deals that would correspond to the bank of issue.
BOMF was administered by the Minister of Finance either directly, or by means of the Bank committee and Commercial Administration of the Office. The debates concerning the substitution of the Bank Office for the bank of issue lasted until 1925, when by an amendment to the bank law from 1920 the Czechoslovak National Bank was established. It started to operate on 1 April 1926.