Gertrude Enderle-Burcel, Dieter Stiefel, Alice Teichova (Hrsg.): Sonderband 9. „Zarte Bande” – Österreich und die europäischen planwirtschaftlichen Länder / „Delicate Relationships” – Austria and Europe’s Planned Economies (2006)
Damir Jelic: “Living in the neighbourhood” - Economic Relations between Capitalist Austria and Socialist Croatia in Historical Perspective
Living in the neighbourhood Why did such a system exist? The financial system of Croatia and Slavonia was dominated by the strong financial position of Zagreb, where some of the most powerful Croatian banks operated.9 On the eve of the First World War, Zagreb was a town of approximately 60,000 people, thus constituting the administrative centre and the political capital of Croatia and Slavonia (the Croatian parliament was also located there). Apart from the six big banks, which have already been mentioned above, there were another 15 banks and exchange houses as well as some branch offices, which altogether connected Zagreb with Vienna,10 Budapest11 and Prague.12 In addition, we have to note 27 credit-savings co-operatives of different, usually very specialised types. Apart from the economic strength of Zagreb, which brought about most trade activities with other parts of Croatia, the strength of Zagreb as a financial centre resulted from a branching policy of a few important banks in Zagreb. Prva Hrvatska Stedionica had offices in 21 Croatian and Slavonic towns, while the Serbian bank was developing a network of independent financial institutes all across Croatia - something that, from a business perspective, presented de facto branches.13 We also have to note the tendency of Hrvatska poljodjelska banka and Hrvatska pucka banka to establish branches. Croatia had some means to support the development of its banking system towards independence, but did not have a high enough level of economic activity to attract foreign banks in the early stage of this development.14 At the same time, language barriers and nationalism were obstacles for Hungarian or Austrian banks to penetrate Croatian territory. Savings were, to a great extent, absorbed by the early-developed and well-managed First Croatian Savings bank, therefore foreign banks could not gain substantial ground on the savings market. Later on, the development of local and regional banks in Croatia filled most gaps that could also have been attractive to foreign banks. Nevertheless, a few branches and affiliations 9 First Croatian Savings bank, Hrvatska slavonska zemaljska hipotekama banka d.d., Srpska banka d.d., Hrvatska eskomptna banka - but not to forget Hrvatska poljodjelska banka d.d. 10 In Zagreb, there was a branch of the Austro-Hungarian bank and a branch of the Wiener Bank Verein. 11 Branch of Magyar Bank és Kereskedelmi Részvénytârsasâg and Hrvatska sveopca kreditna banka d.d. which was an affiliation of Magjar Altanalos Hitelbank rt. 12 The connection to Prague was somewhat complicated. In Zagreb, there was a branch of the Hrvatska Zemaljska Banka Osijek, which was the biggest bank in Slavonia. Hrvatska Zemaljska Banka Osijek was a formation of the zivnostenskâ banka in Prague. 13 About the economic and financial organisation of Serbs in Croatia see: J e 1 i c , Damir: Sailing with the nationalist wind - The case of the Serbian Bank in Zagreb (1895-1918) - in Kostas P. Kostis (Ed.) The Creators and the Creation of Banking Enterprises in Europe from the I8,h to the 20th Century. Athens 2002. 14 See also Lampe, John - J ac k s on , Marvin R.: Balkan Economic History. Bloomington 1982, p. 303. 251
