The history of Bavarian banks provides for an exemplary case of the banking infrastructure in Germany.
Founded by aristocratic families within the various regional areas the banks achieved soon central bank
status. The unification of the country caused a consolidation of the infrastructure of central banks,
which in turn became commercial banks focussing on the banking business rather than the tasks of a
central bank.
List of the mentioned Bavarian Banks
Bayerische Staatsbank (1780 - 1971)
The Bayerische Staatsbank (Bavarian State Bank) is the oldest of the Bavarian banks introduced here.
Prussian Roots
It was founded in 1780 by the Prussian Count Karl Alexander as
Hochfürstlich-Brandenburg-Anspach-Bayreuthische Hofbanco in Ansbach.
The bank supported the transfer of money from England (who pays for supporting troops being given
to her for the war against Northern America) and regional economic development.
In 1792 the bank becomes the Königlich Preußische Banco under the lead of Carl August Freiherr von
Hardenberg, who will later become Prussian State Chancellor. We develops the bank into a proper
commercial operation.
After the battle of Austerlitz in 1805 Napoleon forces Prussia to give up territory to Bavaria.
Amongst it is the area in which the Königlich Preußische Banco operates. It becomes the
Königlich Baierische Banco in 1806 and is now Bavarian.
The Bank of the Bavarian King
In 1807 the bank moves its headquarter to Nürnberg and is know from then under the name of
Königliche Bank Nürnberg. The bank is owned by the King of Bavaria but has no governmental
responsibilities. It funds the industrialisation of Bavaria, where mainly textile industry develops
rapidly. In the mid 19th century the Bank is focussed on Northern Bavaria. In the Southern part of the
state is covered by the Bayerischen Hypotheken- und Wechsel-Bank.
From 1871 the bank widens its product range significantly. Railway development and further
industrialisation offer business opportunities, as do the wealthier people in the ever growing towns.
When in 1918 the Kingdom of Bavaria is dissolved the bank changes its name finally into
Bayerische Staatsbank. On 24. March 1920 the bank gets a new legal foundation and its equity
is re-evaluated at 80 Million Mark.
Crisis and Survival in the 20th Century
The Bayerische Staatsbank survives the Inflation years in
the 1920s and the economic crisis in the 1930s. In 1933 the bank becomes a State Bank without State
as a territorial reform removes the states in Germany. All public service bodies are being financed
from the Reichskasse in Berlin from that year on. The Bayerische Staatsbank is being controlled by
the Aufsichtsamt für das Kreditwesen in Berlin (control authority for the financial services).
The Bayerische Staatsbank takes over the Bayerische
Notenbank in 1935, in which it was already a majority stakeholder.
During World War 2 the building of the Bayerische Staatsbank are
being damaged significantly. But the bank continues its operation. On the 25. October 1950 the
"Gesetz über die Bayerische Staatsbank" (Law on the Bavarian State Bank) gives the bank a new
legal basis and upgrades its capital, which had been reduced by the money reform in 1948 (see also
History of Western Germany). It is now owned by the Bavarian
State.
In 1970 the State of Bavaria transforms the Bayerische Staatsbank into a public limited company
(Aktiengesellschaft) to prepare its privatisation. On 8. March 1971 the bank merges into the
Bayerische Vereinsbank.
Directors and Presidents of the Bayerische Staatsbank
- Wilhelm Friedrich von Benkendorf (1780-1792)
- Carl August Freiherr von Hardenberg (1792-1806)
- Johann Georg von Kracker (1806-1819)
- Johann Georg Eberhard Faber (1819-1839)
- Johann Philipp Siess (1839-1845)
- Christian Friedrich Heinrich Lentz (1845-1851)
- Johann Gottfried Christian von Mayer (1851-1861)
- Karl Friedrich Burkart (1861-1862)
- Christian von Pfeufer (1862-1878)
- Ferdinand von Landgraf (1878-1898)
- Andreas von Seisser (1898-1909)
- Wilhelm von Burkhard (1909-1915)
- Franz von Coluzzi (1915-1919)
- Hugo Arnold (1919-1927)
- Dr. Wilhelm von Wolf (1928-1934)
- Dr. Paul Hammer (1934-1942)
- Albert Gorter (1942-1945)
- Dr. Karl Max von Hellingrath (1945-1954)
- Dr. Dr. Alfred Jamin (1954-1964)
- Dr. h.c. Rudolf Eberhard (1964-1970)
Bayerische Notenbank (1875 - 1935)
The Bayerische Notenbank was founded in 1875 as a central instance to issue paper money for Bavaria
(Bayern). King Ludwig II. of Bavaria signed the articles of foundation on 3. August 1875. The Notenbank
then started trading on 3. November 1875. The initial equity was 15 Million Mark. The Bank was limited
to issue banknotes worth 70 Million Mark. Until 1922 the bank only issued 100 Mark bills.
During the Inflation the Bayerische Notenbank also issued
higher denominations: in 1922 1000 und 5000 Mark, in 1923: 14 banknotes between 20000 Mark and
500 Milliarden (Billion) Mark. After the Inflation in 1924 50 and 100 Reichsmark banknotes were issued.
In 1925 a newly designed 50 Reichsmark banknote was issued.
The Bayerische Notenbank looses it right to issue money in 1934. On 1. January 1935 the bank is
integrated into the Bayerische Staatsbank.
Directors of the Bayerische Notenbank
- Theodor Pühn (1875-1900)
- Johann Lehner (1900 -1914)
- Dr. Moriz von Stroell (1914-?)
- Richard Notthafft Frhr. von Weissenstein (1921-1935)
Bayerische Vereinsbank (1869 - 1998)
The Bayerische Vereinsbank was founded as a private initiative and received its concession in 1869 from
King Ludwig II. of Bavaria. The bank opens on 1. July 1869 in Munich.
Until World War 1 the bank is focussed on mortgage business and
associated account and payment transactions. It also starts to invest in company holdings.
World War 1 and following the Inflation damage the business
and capital base of the Bayerische Vereinsbank. It has to rationalise and streamline its operations
drastically.
During World War 2 the Nazi party gains a significant holding
in the bank's stocks and influence in its business.
After the war the Bayerische Vereinsbank starts its business successfully. It expand its business
continuously and helps finance the re-building of Germany. In 1971 it merges with the
Bayerische Staatsbank and in 1998 with the
Bayerische Hypotheken und Wechselbank.
Directors of the Bayerische Vereinsbank
- A. Siegel (1869-1871)
- Dr. Friedrich Volz (1873-1897)
- Josef Pütz (1897-1908)
- Adolf Pöhlmann (1908-1928)
- Hans Christian Dietrich (1928-1938)
- Carl Butzengeiger (1938-1956)
- Dr. Wilhelm Biber (1956-1959)
- Dr. Hans-Christoph Frhr. Tucher von Simmelsdorf (1959-1968)
- Dr. Werner Premauer (1968-1976)
- Dr. Maximilian Hackl (1976-1990)
- Dr. Albrecht Schmidt (1990-1998)
Bayerische Hypotheken und Wechselbank (1835 - 1998)
On provision of King Ludwig I. of Bavaria the parliament ratifies the law "Gesetz betr. die Errichtung
einer Hypotheken- und Wechselbank" (law re the creation of a mortgage and discount bank) on 1. July 1834.
This law allows the creation of a privately owned bank, which is founded in 1835 and opens on
15. October 1835 in Munich. The initial capital provided by 75 men (one of them the King) is 10 Million
Gulden.
The articles of association limit the undertakings of the bank. It develops, however, innovative
financial solutions to continue to expand its business. The bank was also allowed to issue of banknotes
(in the currency "Gulden").
This privilege was given up in 1871 after the unification of Germany and freed the bank from other
limitations of its business.
A change in legislation in 1899 forces the bank to give up its insurance business in 1906.
The mortgage business is damages massively during World War 1 and
Inflation. The bank, however, does fairly well during the
economic crisis of the 1930s.
Being a regional bank - the Bayerische Hypotheken und Wechselbank is not being split up by the allies
after World War 2. It continues its operation and prospers. The
money reform in 1948 (see also History of Western Germany)
leaves the bank with a strong capital basis on which to build.
In 1998 the bank merged with the Bayerische Vereinsbank.
Bayerische Hypo- und Vereinsbank (from 1998)
On 1. September 1998 the Bayerische Hypo- und Vereinsbank AG starts after a merger
of Bayerische Vereinsbank and
Bayerische Hypotheken und Wechselbank. The bank continues its operation
as one of Germany's largest banks.
Speaker of the Board of the HypoVereinsbank
- Dr. Albrecht Schmidt (1998-2002)
- Dieter Rampl (from 2003)
|
