An Outline History of Polish Central Banking

Home , Bank of Poland, History of Poland

Cecylia Leszczyńska

WARSAW

Warsaw, 2011

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INTRODUCTION ...... 4 BANK OF POLAND 1828–1886 ...... 7 POLISH NATIONAL CREDIT BANK 1918–1924 ...... 15 BANK OF POLAND SA 1924–1945 ...... 19 Status and activities ...... 19 Issuing and lending activity ...... 25 Wartime – Bank of Issue in the General Gouvernement ...... 36 NATIONAL BANK OF POLAND ...... 40 8QGHUWKHÀQDQFLDOV\VWHPRIVWDWHVRFLDOLVP² ...... 40 NBP’s status and activities ...... 40 Issue and lending activity ...... 50 Under the market economy of a democratic state 1989–2008 ...... 56 Status, tasks and activity between 1989 and 1997 ...... 57 Status, tasks and activities of the NBP after 1997 ...... 69 BIBLIOGRAPHY ...... 80 LIST OF TABLES AND FIGURES ...... 89

-3- INTRODUCTION

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-4- An Outline History of Polish Central Banking

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-5- BANK OF POLAND 1828–1886

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-6- An Outline History of Polish Central Banking

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An Outline History of Polish Central Banking

Ksawery Drucki-Lubecki (1778–1846) The Minister of the Treasury between 1821 and 1830, proponent of the state support for the infant domestic industry, founder of the Land Loan Society in Warsaw and of the Bank of Poland.

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An Outline History of Polish Central Banking

7DEOH Operations of the Bank of Poland between 1828 and 1885 (in thousands of silver roubles)

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Share capitala 4,500 6,300 8,000 8,000 8,000 8,000 8,000

Deposits and contributionsa 15,728 12,155 40,154 37,678 74,717 56,944 49,525

Cash loansb, c 880 352 304 787 1,359 1,095 1,422 – for industrial developmentd 827 158 108 271 193 – – – trade loans 53 194 196 516 1,166 1,095 1,422

Discounting of notesb 926 3,615 1,604 2,399 8, 315 42,763 54,654

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POLISH NATIONAL CREDIT BANK 1918–1924

7DEOHWARSZAWA. Polish marks in circulation and the State Treasury’s debt with PKKP between 1919 and 1923. Balance as at the end of the year/month (in mkp million)

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1918 1,023.8a x 117.8 x

1919 5,316.3a 4,292.5 6,825.0 6,707.2

1920 49,361.5 44,045.2 59,625.0 52,800.0

1921 229,537.6 180,176.1 221,000.0 161,375.0

1922 793,437.5 563,899.9 675,600.0 454,600.0

1923 III 1,841,205.6 1,047,768.1 1,752,000.0 1,076,400.0

VI 3,566,649.1 1,725,443.5 2,996,500.0 1,244,500.0

IX 11,197,737.9 7,631,088.8 10,265,500.0 7,269,000.0

XII 125,371,955.4 114,174,217.5 111,332,000.0 101,066,500.0

1924 IIIb 596,244,205.6 470,872,250.2 291,700,000.0 180,368,000.0 a7KHGDWDGRQRWLQFOXGHWKHFLUFXODWLRQRIFXUUHQFLHVRIWKHSDUWLWLRQLQJFRXQWULHV%HWZHHQDQG WKHVHFXUUHQFLHVZHUHH[FKDQJHGIRUWKH3ROLVKPDUN7KHLULQFOXVLRQZRXOGUHQGHUWKHIROORZLQJWRWDO DPRXQWVLQFLUFXODWLRQELOOLRQPDUNVLQDQGELOOLRQPDUNVLQb7KHPDUNFHDVHGWREH OHJDOWHQGHURQ-XO\LQ$SULOWKH]ORW\ZDVODXQFKHG 6RXUFH6WDWLVWLFDO

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7DEOH Index of wholesale prices and dollar exchange rates between 1918 and 1924 (as at the end of the year)

Years :KROHVDOHSULFHV 'ROODUH[FKDQJHUDWH

1918 . 2.14

1919 . 26.36

1920 . 137.99

1921 570 702.71

1922 3,428 4,242.10

1923 1,423,007 1,502,976.00

31 March 1924 2,452,779 2,220,238.00

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POLISH NATIONAL CREDIT BANK 1918–1924

)LJXUHWARSZAWA Wholesale prices and dollar exchange rates between 1919 and 1923 (end of preceding month = 100)

550 500 450 400 350 300 250 200 150 100 50 31 XII IIIIII IV V VI VII VIII IX XXIXII IIIIII IV V VI VII VIII IX XXIXII IIIIII 1921 1922 1923 1924 Wholesale prices Dollar exchange rate

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BANK OF POLAND SA 1924–1945

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An Outline History of Polish Central Banking

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BANK OF POLAND SA 1924–1945

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An Outline History of Polish Central Banking

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-33- BANK OF POLAND SA 1924–1945

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-34- An Outline History of Polish Central Banking

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Balance as at the end of the year, according to parity of 1927 Balance as at the end of year, Overall gold, foreign currency and foreign exchange Notes in circulation

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-35- BANK OF POLAND SA 1924–1945

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Bank Handlowy SA: branches – – – 5 5

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– domestic branches and agencies – – 9 21 18

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0 1950 1955 1960 1965 1970 1975 1980 National Bank of Poland Investment Bank Agricultural Bank including savings and loan cooperatives (since 1975, BGŻ) Other institutions 6RXUFH 6WDWLVWLFDO )LQDQFLDO

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-53- NATIONAL BANK OF POLAND

WARSZAWA )LJXUHIndex of prices of the goods and services purchased by the population between 1981 and 1988 (preceding year = 100)

210 204.5 200 190 180 161.3 170 160 150 140 125.3 121.2 121.4 130 114.8 115.0 117.5 120 110 100 1981 1982 1983 1984 1985 1986 1987 1988

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NATIONAL BANK OF POLAND

WARSZAWA 7DEOHInterest rates on an annual basis between 2000 and 2005 (as at 31 December)

Lombard loan at the central bank 23.0 15.5 8.75 6.75 8.0 6.0

Rediscount rate on promissory notes at the central bank 21.5 14.0 7.5 5.75 7.0 4.75

Average rate on loans in zlotys 21.5 16.8 10.7 9.2 10.3 8.9

– for enterprises 21.2 15.7 8.8 7.2 8.3 6.3

– consumer loans 22.9 20.8 17.7 15.8 15.9 15.2

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