Česká spořitelna
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Česká spořitelna is the biggest Czech bank measured by the number of clients (4.7 million) Česká spořitelna, Konsolidované výsledky za rok 2016 (neauditované, IFRS), 28. února 2017 with its headquarters in Vienna. It is a part of the
Erste Group Erste Group Bank AG (Erste Group) is an Austrian financial service provider in Central and Eastern Europe serving 15.7 million clients in over 2,700 branches in seven countries. History Erste Group was founded in October 1819 as ''Erste öster ...
, Austria.


History


Foundation of the Bank on the territory of the Austrian monarchy (1825–1844)

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. The purpose of the savings banks was to be to help the poor manage their finances.Hájek 2005, s. 12 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.Hájek 2005, s. 14 Its origins were very modest; initial capital was 8,717
gulden ''Gulden'' is the historical German and Dutch term for gold coin (from Middle High German "golden penny" and Middle Dutch " golden florin"), equivalent to the English term guilder. Gulden, Gülden, Guldens or Gulden's may also refer to: Coins o ...
, and only by the end of December 1822 did it increase to 338,388
gulden ''Gulden'' is the historical German and Dutch term for gold coin (from Middle High German "golden penny" and Middle Dutch " golden florin"), equivalent to the English term guilder. Gulden, Gülden, Guldens or Gulden's may also refer to: Coins o ...
.Kurze Geschichte der Böhmischen Sparkasse, in: ''Monatschrift der Gesellschaft des Vaterländischen Museums in Böhmen'' 1, 1829, s. 165 Subsequently, banks began to appear in other cities of the monarchy: Ljubljana (1820),
Innsbruck Innsbruck (; bar, Innschbruck, label=Bavarian language, Austro-Bavarian ) is the capital of Tyrol (state), Tyrol and the List of cities and towns in Austria, fifth-largest city in Austria. On the Inn (river), River Inn, at its junction with the ...
, Bregenz (both 1822), and Hollabrunn (1824).


First Bank of Česká spořitelna in the Czech Republic

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. 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 PLN 12,000. The first to respond to the proposal was Prince Rudolf Colloredo, who invested 300
gulden ''Gulden'' is the historical German and Dutch term for gold coin (from Middle High German "golden penny" and Middle Dutch " golden florin"), equivalent to the English term guilder. Gulden, Gülden, Guldens or Gulden's may also refer to: Coins o ...
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 gulden, 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 ( cs, 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) ( cs, Schraňovací Pokladnice) for the Capital City of Prague and
Bohemia Bohemia ( ; cs, Čechy ; ; hsb, Čěska; szl, Czechy) is the westernmost and largest historical region of the Czech Republic. Bohemia can also refer to a wider area consisting of the historical Lands of the Bohemian Crown ruled by the Bohem ...
. 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. 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 Bohemian Diet ( cs, Český zemský sněm, german: Böhmischer Landtag) was the parliament of the Kingdom of Bohemia within the Austro-Hungarian Empire between 1861 and Czechoslovak independence in 1918. The Diet during the Absolutist Per ...
. 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 kreuzer to 100
gulden ''Gulden'' is the historical German and Dutch term for gold coin (from Middle High German "golden penny" and Middle Dutch " golden florin"), equivalent to the English term guilder. Gulden, Gülden, Guldens or Gulden's may also refer to: Coins o ...
. 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 124,000 gulden; by 1830, it was 1,573,000, and within ten years, 8,087,000. In the same manner, its assets grew.


Austrian regulation

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.


Consolidation and expansion (1845–1918)


Establishment of Czech savings banks in the 1850s and 1860s

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 (; german: Asch) is a town in Cheb District in the Karlovy Vary Region of the Czech Republic. It has about 12,000 inhabitants. Administrative parts Villages of Dolní Paseky, Doubrava (Aš), Doubrava, Horní Paseky, Kopaniny (Aš), Kopaniny, ...
(1847). Others were gradually added; at the turn of the 1850s and 1860s, there were about 20 such banks. However, these banks were
German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...
-speaking; as for the truly Czech-speaking savings bank, the bank in the city of
Plzeň Plzeň (; German and English: Pilsen, in German ) is a city in the Czech Republic. About west of Prague in western Bohemia, it is the Statutory city (Czech Republic), fourth most populous city in the Czech Republic with about 169,000 inhabita ...
, 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 Bohemia ( ; cs, Čechy ; ; hsb, Čěska; szl, Czechy) is the westernmost and largest historical region of the Czech Republic. Bohemia can also refer to a wider area consisting of the historical Lands of the Bohemian Crown ruled by the Bohem ...
. Thus, the Czech-speaking banks almost equaled the
German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...
-speaking ones in number.


Changes in founders and clientele

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.


Situation during World War I

The First World War greatly affected banks. Already in 1909, depositors began to panic (there were reports of the beginning of the war with Serbia). Another alarm was in 1912, in connection with the war in the Balkans. The outbreak of the First World War caused a huge panic among the population, and people tried to withdraw their deposits, so on July 31, 1914, the government announced a moratorium on all large payments, which continued until the summer of 1915. However, the banks lost most of their cash in the first year of the war. Gradually, banks began to emerge from the crisis due to the creation of rural banks, which increased capital due to investments in rural enterprises during food shortages. As deposits in rural banks grew, the central balance improved, and the surplus was then invested in military loans.


Present day

Česká spořitelna has approximately 5 million customers and is the largest bank in the Czech market. It provides services to individuals, as well as small and medium enterprises. The bank finances large corporations and provides services in the financial markets. It has issued 3.3 million debit and credit cards, and it also has the largest ATM network in
the Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The Cz ...
(about 1244). Almost 1.2 million customers use the bank's direct banking services. The network of branches includes more than 640 locations, including mortgage, commercial and development centers. The Česká spořitelna Foundation supports charitable projects in the fields of culture, education, science, public and social issues, healthcare, charitable, municipal events, sports and ecology. The bank employs almost 11,000 employees in all regions of
the Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The Cz ...
.


Social responsibility

In December 2016, Česká spořitelna joined
the Think Tank Episodes for the British sitcom ''Are You Being Served?'' aired from 1972 to 1985. All episodes were 30 minutes long. There was a film in 1977, also entitled ''Are You Being Served?''. While all episodes were in colour, the pilot had originally ...
.Česká spořitelna stáhne jako první velká společnost inzerci z dezinformačních webů — ČT24 — Česká televize
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Services

Its main clients are: * individuals *
small and medium enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...
* cities and municipalities * large corporations Its main products include: * loans * financial market consultancy * payment cards * ATMs * online banking * retail services, mortgage, development centers, etc.


Financial data


References

''Article contains translated text from Česká spořitelna on the Czech Wikipedia retrieved on 7 March 2017.''


External links


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{{DEFAULTSORT:Ceska sporitelna Banks of the Czech Republic Banks established in 1825 19th-century establishments in Bohemia