Czech banking system

In the interwar period, Czech banks gradually got rid of provincialism. The first shock of the deflationary crisis hit a number of institutions hard, but the ensuing boom helped the overall consolidation of Czech banking. The years of the great economic crisis have caught the banking sector better prepared than other areas of the economy. A characteristic feature of Czechoslovakia. The commercial banks of the interwar period were their massive transition to universalism. This brought them closer to Western European standards. In the 1930s, the banking sector helped maintain a balance of public finances burdened by military spending to defend against Nazi aggression. However, the banking sector also had its weaknesses. The backwardness and surviving provincialism manifested themselves mainly in less information and foresight, the absence of branches and branches in safe parts of Europe and the USA, where resources could be shifted to the prospective financing of strategic policy goals if necessary. The inclusion of the Czech banking system in the international context was also a weakness. Foreign capital in Czech banks was speculative rather than investment. At critical moments, it withdrew and did not benefit either the bank or the economy as a whole. However, the banking system basically fulfilled its mission in the interwar period. In the 1930s, it was already so stable and strong that it had a real chance to be the financial and management center of economic events in the Czech Republic.