An Outline History of Polish Central Banking

WARSAW

An Outline History

of Polish Central Banking

Warsaw, 2011

Cecylia Leszczyńska

Reviewed by:

:

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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

........................... 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

Table of contents

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INTRODUCTION

th 1

2

th

the 20th th

1

2

th

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An Outline History of Polish Central Banking

th

-6-

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BANK OF POLAND1828–1886

Plan of the development of the National Bank project


th

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10

11

th 12

th

10

11

12 th


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

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

– for industrial developmentd

– trade loans

88082753

352158194

304108196

787271516

1,359193

1,166

1,095–

1,095

1,422–

1,422

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

Bill casea 877 871 439 819 2,695 15,482 14,706

a b cd

[History

20

21

20

21

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22

22

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POLISH NATIONAL CREDIT BANK 1918–1924

. 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)

Years

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

a

b


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

Years

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

[What [Treasury of the

WARSZAWA

POLISH NATIONAL CREDIT BANK 1918–1924

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

50

100

150

200

250

300

350

400

450

500

550

31 XII1921

I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III

Wholesale prices Dollar exchange rate1922 1923 1924


Economist, historian and politician. He commenced his public activity before WW I, as a deputy to the Russian Parliament – Duma; after the war, he served twice as the Prime Minister and several times – as the Minister of the Treasury; lecturer and rector at the Warsaw University of Life Sciences.

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BANK OF POLAND SA 1924–1945

(


[The

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th

th

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redoubt of insurgent troops.

IV 1924 – IV 1929

IV 1929 – IV 1934IV 1934 – II 1936

Adam Koc II 1936 – V 1936

V 1936 – III 1941

Bohdan Winiarski III 1941 – III 1946a


b

IX 1924 – IX 1929

IX 1932 – IX 1937

a

b

Treasury,

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Money in circulation between 1924 and 1939

a

in millions of zlotys

676b

Notes of the Bank of Poland 551 1,340 981 1,406 1,883

Fiduciary notesc 89 64 – – –

Small coins 34 196 384 460 500

– silver 3 123 290 370 382

– other 31 73 94 90 118

in %c

Notes of the Bank of Poland 81.5 83.8 71.9 75.3 79.0

Fiduciary notesc 13.2 4.0 – – –

Small coins 5.0 12.2 28.1 24.7 21.0

– silver 0.4 7.7 21.2 19.9 16.0 – other 4.6 4.5 6.9 4.8 5.0

a bc

th

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Discount rate of the Bank of Poland and maximum statutory rate between 1924 and 1938

24 2424

18

1413 12 13 13

12 12 1211 11

9.5 9.5

12 10 1210

9 8.5 8 9 8.5 87 6.5 7.5

65 4.5

468

101214161820222425

%

192

4 IV

1924

XII

1925

VIII

1926

VIII

1927

II

1927

IV

192

7 VI

1929

IV

1929

XII

1930

II

193

0 IV

1930

VI

193

0 X

1932

X

1933

X

1936

XII

Statutory (maximum) rate Discount rate of the Bank of Poland


Plan

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Exchange rates of the dollar and the zloty in 1927

January 8.99 173.5 57.6

October–December 8.91 172.0 58.1


40

60

80

100

120

140

160

1929 1930 1931 1932 1933 1934 1935 1936 1937 1938

Wholesale prices Cost of livingNominal wages (industry) Real wage indexEmployment (industry) National income (GDP)

WARSZAWA


Promissory note and lombard loans of the Bank of Poland between 1924 and 1939

0

200

400

600

800

1,000

1,200

1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938

million zlotys

-33-


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,

-35-


Circulation of notes of the Bank of Poland as well as gold and foreign exchange reserves between 1924 and 1939

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939

Gold

million zlotys

Foreign currency and foreign exchangeOverall gold, foreign currency and foreign exchangeBa

lanc

e as

at t

he e

nd o

f the

yea

r, ac

cord

ing

to p

arity

of 1

927

Notes in circulation

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of the

th

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NATIONAL BANK OF POLAND

NBP’s status and activities

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100

was adopted,101

102

100

101

102


1.02. 1945–17.03. 1949a

27.09.1950–18.12.1956

28.12.1956–3.06.1961

3.06.1961–20.01.1965

20.01.1965–17.09.1968

17.09.1968–29.12.1972

2.04.1973–31.12.1980

1.01.1981–29.07.1985

12.04.1985–12.11.1985

13.11.1985–13.07.1988

13.07.1988–11.09.1989

a

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110

111

112

110

111

112

th


Banks between 1946 and 1981. As at 31 December of a given year

National Bank of Poland

branches: regional 77 17 17 17 49

operating 419 406 431 288

Investment Bank: regional and operating branches – 42 43 – –

Agricultural Banka : regional and district branches . 64 111 112 95b

Bank Handlowy SA: branches – – – 5 5

Bank Polska Kasa Opieki SA:

– domestic branches and agencies – – 9 21 18

– foreign branches 2 2 2 1 1

16 134 195 235 222c

Union of Savings and Lending Co-operatives: regional branches and savings and lending co-operatives 1,180 1,302 1,376 1,662 1,585d

a bc

d

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Issue and lending activity

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120

120

,

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121

Short-term and investment loans by lending institutions between 1950 and 1980

122

121

122

0

20

40

60

80

100 %

1950 1955 1960 1965 1970 1975 1980

Other institutionsAgricultural Bank including savings and loan cooperatives (since 1975, BGŻ)Investment BankNational Bank of Poland

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

121.2

204.5

121.4114.8 115.0 117.5

125.3

161.3

100110120130140150160170180190200210

1981 1982 1983 1984 1985 1986 1987 1988

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,

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Status, tasks and activity between 1989 and 1997

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Interest rates between 1985 and 1990 (on an annual basis)

4.0 4.0 4.0 6.0 61.3 103.8

Average interest on loans 6.2 6.3 6.7 10.5 49.4 66.7

,

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. NBP policy rates between 1990 and 1997

20253035404550556065707580859095

100

1990

1 IV

1990

1 V

1990

1 V

I

1990

1 V

II

1990

15

X

1990

21

XI

1991

1 II

1991

1 V

1991

5 V

II

1991

2 V

III

1991

19

IX

1992

1 V

I

1992

1 V

II

1993

21

II

1994

13

V

1995

21

II

29 V

18 IX

1996

8 I

17 V

II

1997

4 V

III

in %

in a

nnua

l ter

ms

Refinancing loans Bill rediscounting Lombard loans

-63-


Required reserve ratio between 1989 and 1997 (in %)

Current 15 9 15 30 30 30 30 25 23 20 20 17 20 29

Savings 10 9 15 17 20 30 25 – – – – – – –

Term 5 9 15 7 8 10 10 10 10 10 9 9 9 11

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Commercial banks in 1990 and 1992 as at the end of the year

a

State-owned banks 11 2

1 1

Joint-stock banks 46 76

Joint-stock banks with foreign capital 3 8

a

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Yeara

1990 95.0 249.3 4.1 10.3

1991 32.0 60.4 8.5 9.0

1992 36.9 44.3 12.7 15.0

1993 32.2 37.6 15.0 14.8

1994 23.0 29.5 15.5–16.9 21.4

1995 17.0 21.6 17.1 26.9

1996 17.0 18.5 23.0 30.5

1997 13.0 13.2 27.4–28.6 39.8

a

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Status, tasks and activities of the NBP after 1997

,

,

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October


200

200

WARSZAWA


201

13.07.1988–11.09.1989

12.09.1989–24.01.1991

25.01.1991–31.08.1991

10.08.1991–4.03.1992

5.03.1992–19.02.199819.02.1998–31.12.2000

Leszek Balcerowicz 10.01.2001–10.01.2007

10.01.2007–†10.04.2010

acting president) 10.04.2010–10.06.2010

Marek Belka since 11.06.2010

202

201

202

,

,


, where

Years a

1998 9.5 8.6

1999 8.0–8.5 (changed to 6.6–7.8 during the year) 9.8

2000 5.4–6.8 8.5

2001 6.0–8.0 3.6

2002 5.0 ± 1 pp. (changed to 3.0 ±1 pp. during the year) 0.8

2003 3.0 ±1 pp. 1.7

2004

2.5 ±1 pp.

4.4

2005 0.7

2006 1.4

2007 4.0

a

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Interest 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

NBP policy rates between 1997 and 2007

02468

1012141618202224262830

1997

4 V

III

1998

21

V

1998

10

XII

1999

21

I

1999

18

XI

2000

24

II

2000

31

VIII

2001

1 II

I

2001

29

XI

2002

31

I

2002

28

XI

2003

30

I

2003

26

VI

2004

1 V

II

2004

26

VIII

2005

31

III

2005

1 IX

2006

1 II

2006

1 II

I

2007

26

IV

2007

29

XI

in %

in a

nnua

l ter

ms

Rediscount rate Lombard rate


210

211

212

210

211

212

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WARSZAWA

BIBLIOGRAPHY

1919–1939


1945–2008

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BIBLIOGRAPHY


,

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BIBLIOGRAPHY

,

,


, Warsaw–

,

, Warsaw

,

,

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BIBLIOGRAPHY

,

,

,

,

,

,

,

,


,

,

,

WARSZAWA

BIBLIOGRAPHY


1

1

1

2

0

1

1

2

1

2

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An Outline History of Polish Central Banking

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