Bank of Diadochia

The Bank of Diadochia, is the central bank of Diadochia. Established in 1601, it is the oldest central bank in Pandos It was established to act as the Diadochian Government's banker, a role it continues to hold. The Bank was privately owned by Johan De Vries from its foundation in 1601, until 1612, when the Bank was nationalized to prevent it from going bankrupt.

History

The Bank of Diadochia began its operations in 1601, it was founded by Johan De Vries, a Dutchman. Although the bank was private, it was the Emperor who chose its management, and commissioned it after De Vries promised half the bank's profits to the crown. It was hoped that the bank would help to stabilize Diadochia's currency. In 1606, the Bank began issuing paper banknotes. This quickly became a problem because these banknotes became popular very quickly, simply because they were much easier to carry.

The invention of banknotes in Diadochia by De Vries eventually caused more problems than it solved. While lending rose rapidly in 1608, the bank's loans ceased to be dependent on the deposits of other account holders. By winter of that year loans and banknote issues had reached such high levels that the value of the banknotes quickly began to fall. When people tried to have their credit notes honoured, the bank did not have enough metal reserved to fulfill all the requests and ceased operations entirely in 1611.

Ten years, after its founding in 1601, the Diadochian government was forced to take over in 1611 after having nationalized the failing bank, reducing the outstanding loans and exchanging the banknotes for coins. The liquidation of the bank was completed in 1612 and De Vries was imprisoned and condemned to death, but later received clemency.

The Bank has remained the central bank of Diadochia. The Bank is located on 15 Stadiou Street.