The 'Old Serbia' bank

The economic bank of Prizren, Peć, Priština, Uroševac, Vučitrn, Gnjilane and South-Serbian bank from Mitrovica established The Financial Institute so called 'Old Serbia' in Skopje in 1923. The economic life of all the founders' towns tended towards Skopje, so it was reasonable that banks' financial interests had a decisive role on foundation of this institute. The banks were able to found independently from each other their own branches in Skopje, or to work with already existing institutes in Skopje. But from the very early age, initiated by the banks from Peć and Prizren, they realized all the advantages that the own economic institute provided and thus would operate all the bank-business operations and represent their interests on the market of Skopje. That bank was often considered to be a holding bank, but it was wrongly understood, because it didn't have the shares of seven banks in its portfolio. On the contrary, at the beginning there were six, and then seven banks that founded and later overtook the shares of the Bank and thus became its owners. The Bank had worked successfully until the appearance of banking crisis in the Kingdom of Yugoslavia in 1931. It enlarged its capital constantly providing the profit. All the bank founders had benefits of successful business dealing, while South-Serbian bank' business was normalized with the intervention of 'Old Serbia'. The reputation and safety of the bank's making business made it possible for it to successfully cope with all problems caused by the financial crisis and to become one of few private financial institutes in Yugoslavia that could make business without any losses.