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Development of the banking system.



HISTORY OF CZECHOSLOVAK CURRENCY.

The establishment of an independent Czech Republic and shortly afterwards the monetary separation also meant the creation of an independent banking system. It includes the Czech National Bank as the central bank, commercial banks and branches of foreign banks. The operation of the national economy is connected every day with millions of monetary transactions in the amount of hundreds of billions of korunas. Together with privatization, the continuing development of the private sector and the dynamic growth of liberalized foreign trade, it created a great demand for bank services. Banks offered businesses and the general public an ever-expanding and ever-modern range of products and services. ATMs and credit cards have quickly become a common part of life, as have computers, the Internet, mobile phones and, with them, electronic banking services. The transformation of banking into a modern market sector has not been without shocks. Sixteen banks went bankrupt or were liquidated. The state had to spend considerable funds to rehabilitate some banks before their privatization. Some banks had to be forced into administration. Virtually all transition countries paid a high price for stabilizing the banking sector. Since 1989, banking has experienced unprecedented growth and technical progress. Today, banking is a modern, technically very well-equipped industry that is connected to international financial flows. It is also an industry that relies heavily on background, know-how and an unbroken tradition of quality service provision represented by strong foreign partners, whose trade names have a high prestige.
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