THE CREDIT AND SAVINGS COOPERATIVE OF TOPLICA

Abstract

With the annexation of Serbia, the so-called New Regions embarked on the path of economic lopment that characterized the northern part of the country. Development was encourgaded by local monetary institutions created by combining the capital of those interested in the development of the economy, primarily merchants. Two monetary instutions wete founded in Prokuplje by the end of the 19th century, one of which was The Credit and Savings Cooperative of Toplica. This monetary institution operated successfully until the WWI, increasing its share capital, erectint its own building and acquiring real estate, and bringins dividends to its shareholdera. The development of The Credit and Savings Cooperative of Toplica was interrupted by the outbreak of the Great War. And in addition to material losser, the stagnation in post-war regular operations was also caused by the destruction of most of the archive. The Cooperative of Toplica began regular operations in the second half od 1920 and operated successufully from the following year. By 1928 the bank had increased its capital many times over and regulary brought dividends to its shareholders. Since 1929 The Credit and Savings Cooperative of Toplica has become one of the leading shareholders of The Company of Kurmšlijska Banja, which was engaged in tourism in the nearby spa with medicinal water. The banking crisis that hit Yugoslavia in 1931 also affected the operations of this bank. Savings deposits were falling dastically, and the inability to collect loans put the institution’s survival in question. Since mid-1934, the bank has been under protecrion and its work gas been reduced to paying out savings deposits. With the beginning of WWII in Yugoslavia, the bank’s work was interrupted, and it did not resume after the war becuase the work of private banks was prohibited the work of private banks was prohibited in socialist Yugoslavia.