Banking regulation in Czechoslovakia 1918-1938

The article surveys the establishment of a legislative framework providing for banking regulation in Czechoslovakia during 1918-1938. The state interv ened in bank sanitation twice during economic recessions in the early 1920s and 1930s. The shocks resulted in the adoption of banking laws to strength en the stability of the banking sector. The laws interfered with the intern al organization of banks, compelled personal responsibility on the part of bank management, protected creditors, and supported inexpensive credit. The Ministry of Finance supervised and pursued licence policies. Other control activities were delegated to autonomous professional institutions. The art icle goes into great detail in describing the development of the areas ment ioned above, and concludes in presenting an estimate of state assistance re lated to sanitation waves.