THE HISTORY OF BANKING IN THE DISTRICT OF DUBROVNIK AND BOKA KOTORSKA BETWEEN THE TWO WORLD WARS (1918 - 1941)

Based on archival sources and relevant literature, the article examines the development of banking in the district of Dubrovnik and Boka Kotorska within the Kingdom of Serbs, Croats and Slovenes, i.e., the Kingdom of Yugoslavia in the period between the two World Wars, with an aim to elucidate the unusually successful activity of the Dubrovnik banks during the great world crisis and the stagnation of the Croatian banking in general. The reasons should be sought in the prudent business policy and profitable investments of the Dubrovnik Commercial Bank realized with the support of Milan Stojadinovic, Minister of Finances (1922-1924, 1924-1926, 1934-1935) and Prime Minister of the Kingdom of Yugoslavia (1935-1939). Maritime commerce and tourism as well as the development of these areas as elite resorts encouraged the growth of savings in banks and financial institutions of the kind, thus creating an additional impetus for diversified economic development. The fact that industry was underdeveloped in the south proved a considerable advantage in the period of crisis, when the dominant private banking capital in Croatia experienced severe losses with the halt of the industry investments. State and other privileged banks took the leading position, having competition in merely a few banking institutions, such as Dubrovacka trgovacka banka (Dubrovnik Commercial Bank) and Dubrovacka vjeresijska banka (Dubrovnik Credit Bank).