INDUSTRIAL AND TRADE BANK A. D. - VRANJE

Abstract

In order to provide enough financial resources for his footwear factory, Stojan Nikolić founded with his relatives and a group of big traders in 1925 an Industrial Commercial Bank. The capital of the bank was one million dinars, and Nikolić and his family owned more than half of the shares. Although it was created with the intention of investing in the industry, the Industrial-Commercial Bank earned profit as other monetary institutions in Vranje and the state, ie by giving short-term loans under bills of exchange. In the period from 1926 to 1928, the bank successfully operated, but the dividend that it made to the shareholders was very modest. . The main client of the bank was Prva Vranjska shoe factory, which invested 25% - 50% per annum from the bank’s basic capital. Since the economic crisis since 1925 has affected all segments of the society, the main beneficiaries of the loan with this bank have become farmers. The great indebtedness of the farmers raised the question of the possibility of their repayment. In an atmosphere of agitation that loans are not repaid, the Industrial-Commercial Bank has remained uncertain, since the return of more than one million dinars in loans has become difficult to pay. If investments are made in the footwear factory, the bank’s positions were that it formally retained the activity, but was basically illiquid.