INDUSTRIJSKO-PROMETNA BANKA ‒ NIŠ

Abstract

The need for reconstruction after the Great War in Serbia caused the establishment of a large number of banks. Several banks were gounded in Niš, as one of the larger cities, and one of them was the Traffic Bank of Niš, which was founded in 1920. The management of this bank consested mostly og merchants, craftsmen and industialists.From the very beginning, this bank has shown interest in jobs thar were in the field of industry. Its rented forest for felling, invested in a turner, but the main preoccupation was the leather facrory that this bank built in Niška Banja at the end of 1922. The bank confirmed its orientation towards industrial affairs by changing its name in 1923 to the Industrial-traffic Bank of Niš.However, investing in the factory almost all the funds at the disposal of the bank, whether it was its own someone else’s, made it impossible for the Industrial-traffic Bank not only to deal with banking, but also exhausted all possibilities for providing working capital, so the factory did not have funds to procure enough raw materials to keep working and thus its was not able to return the money invested in it.The members of the management managed this company unprofessionally, and major malversations were noticed, which made it impossible for the facrory to work properly, at least to some extent. The bank invested all its funcs in the facrory, which made it unable to deal with banking. The lack of working capital made the factory stop working at the beginning of 1925, and the Industrial-traffic Bank of Niš went bankrupt in the middle of the same year.