Česká spořitelna

The creation of the first savings banks in Europe occurred during the second half of the 18th century, when several such institutions were mainly situated in Germany and Switzerland. At the beginning of the 19th century, the idea of savings banks began to spread in Great Britain. There, by the end of 1818, several hundred savings banks could be counted.[3] The purpose of the savings banks was to be to help the poor manage their finances.[4]

Around that time, the idea of savings banks began to attract interest in the Habsburg monarchy, and the result was the founding of Die Erste Oesterreichische Spar-Casse (The First Austrian Savings Bank) on 4 October 1819. This union was the first financial institution of its kind in the Austrian Empire.[5] Its origins were very modest; initial capital was 8,717 florins, and only by the end of December 1822 did it increase to ƒ338,388.[6] Subsequently, banks began to appear in other cities of the monarchy: Ljubljana (1820), Innsbruck, Bregenz (both 1822), and Hollabrunn (1824).

In Prague, the initiative was led by the Prague policeman and director of the Governor's Council, Josef von Hoch, who submitted the first proposal for the creation of a Prague-based bank.[6] The emergence of the bank was preceded by an appeal published in a newspaper in 1823, the underwriting of the main fund of the bank, which was supposed to be a guarantee for future depositors that they would not lose their money. The general minimum fund was set at 12,000 florins. The first to respond to the proposal was Prince Rudolf Colloredo, who invested 300 florins in the fund of the future bank. This sum was followed by 23 Czech nobles and other industrialists and entrepreneurs. The first group of contributors, with a contribution of 300 florins, were the nobles Franz Josef Graf Wrtby, August Lobkowitz, Jan Adolf II Schwarzenberg, Philip Kinski, Vratislav of Mitrovice and Prague Archbishop Vaclav Leopold Chlumchansky.

As with most other savings banks of those times, the purpose of the first Czech bank (Czech: Česká Spořitelna) was to assist the poor sectors of the population. People had to keep certain amounts from which they received a small interest, and thus created stock in case of illness, old age or unemployment. The full name of this Prague bank in the Czech language was Savings Treasury (cashier) (Czech: Schraňovací Pokladnice) for the Capital City of Prague and Bohemia. However, a short name gradually caught on: Česká Spořitelna (German: Böhmische Sparkasse), in which the adjective "Czech" is indicated by the place of work of the bank.[7] The new bank was at first open for only a few days a week (on Monday, Wednesday and Saturday) from 9:00 to 12:00, and from 15:00 to 18:00, and with two rooms in the building of the Bohemian Diet. The bank did not move to its own office on Malostranské náměstí until 1845, at which time it was already open throughout the week.

As for deposits, it was possible to store money amounting to between 25 kreutzers to 100 florins. People received registered savings books. Percentages accounted for 4%, later 3%. The bank carried out only a few active operations (mortgage lending, operations with Austrian government securities and partial cash bills before the date of payment) so that people's savings would be secured.

The capital of the bank increased dramatically for a decade. In 1825, it was ƒ124,000; by 1830, it was ƒ1,573,000, and within ten years, ƒ8,087,000. In the same manner, its assets grew.

Even at the beginning of 1840, the creation of Česká spořitelna was allowed by a special concession, but the need for a general law regulating the activities of the Bank arose. This law was adopted on September 26, 1844, when Austrian savings regulations were announced. It was a standard that, with minor amendments, was in place until the end of the Habsburg Empire.

The regulations were based on the idea that banks are social institutions that take over part of the government agenda, that is, the concern for the well-being of the people. Therefore, charitable societies were considered the most appropriate bases of banks. Active bank transactions were significantly reduced so that the institutions could avoid risk and therefore defend the savings of the population.

Even financial surpluses were to be primarily used to expand the reserve fund, and, to a lesser extent, support projects of general benefit (construction of schools, hospitals, etc.). But these good intentions held back the further development of the bank. The positive advantage of regulation was, above all, that it put the existence of savings banks on a solid legal framework.

The savings regulations of 1844 served to further the development of the bank. The first bank to open in another city was the bank in Aš (1847). Others were gradually added; at the turn of the 1850s and 1860s, there were about 20 such banks. However, these banks were German-speaking; as for the truly Czech-speaking savings bank, the bank in the city of Plzeň, which was opened in 1857, is considered to be the first. In the first half of 1860, there was more growth, and Czech-speaking banks opened all over Bohemia. Thus, the Czech-speaking banks almost equaled the German-speaking ones in number.

Initially, the founders of banks were charitable foundations, but gradually, state institutions became the founders. The conditions for accepting clients had also changed. Banks were originally intended for the poor. Now clients were mostly middle-class urban dwellers, which was reflected in the economic strength of the new banks.

In December 2016, Česká spořitelna joined the Think Tank.[13]