Saa Mii

Serbo-Albanian Bank in Albania

Tc idca ol sctting up a bank with Yugoslav capital in Albania, which, bc

ing on thc ground, would scrvc as a channcl lor cconomic and cvcry othcr
pcnctration into Albania, may bc traccd back to thc altcrmath ol thc First
Vorld Var. Tc bank was an aspcct ol thc Yugoslav (Kingdom ol Scrbs,
Croats and Slovcncs) govcrnmcnts policy on Albania aimcd at cstablish
ing thc closcst possiblc commcrcial, crcdit and transport rclations with thc
ncighbouring statc ol Albania, its northcrn part in particular.
+
Yct anoth
cr motivc was thc Yugoslav govcrnmcnts aspiration to countcract !talys
growing cconomic inucncc in Albania.
:
Morcovcr, thc undcrtaking should
bc analyzcd also in light ol thc lact that in thc rst lcw ycars altcr thc First
Vorld Var thcrc wcrc no banks at all in Albania. Namcly, bclorc thc war,
thcrc opcratcd thc Turkish Ottoman Bank, which opcncd its branch occ
in Scutari (Shkodcr) in +++.

Vhcn Albania bccamc indcpcndcnt in ++,

somc banks lrom AustriaHungary and !taly also showcd intcrcst. Groups
ol Austrian and !talian banks, lcd by !iener Bank.erein and Banca Com-
merciale Italiana rcspcctivcly, tricd to cstablish an Albanian National 8ank,
but with no succcss.

uring thc war, only !iener Bank.erein opcratcd in

+
Miladin Milocvi and Ljubodrag imi, Mcudravni ugovori izmcu Jugoslavijc
i Albanijc +++ |!ntcrstatc agrccmcnts bctwccn Yugoslavia and Albania ++
+| in Stano.it.o slo.enskog porekla u lbaniji |Population ol Slavic rigin in Alba
nia| (Cctinjc, +o), intcrnct cdition only consultcd: http://www.rastko.org.yu/rastko
al/zbornik+o/miloscvicljdimicugovori. php
:
For thc rolc ol !taly in thc nancial lilc ol Albania bctwccn thc two world wars, scc
Alcssandro Rosclli, Italy and lbania: Financial Felations in the Fascist Period (London,
:oo6).

Tc ttoman 8anks branch occ in Scutari was closcd in ++, cl. Tc ttoman
8ank Archivcs and Rcscarch Ccntrc at: www.obarsiv.com/cnglish/history.html.

A. Mitrovi, Strane banke u Srbiji ::,:, |Forcign 8anks in Scrbia +88++|

(8clgradc, :oo), .
8alcanica XXX\!! :o
thc tcrritory ol Albania.

As its opcration was tcrminatcd at thc cnd ol thc

war, thc nccd arosc to ll up thc gap and cstablish a bank that would havc a
prcvailing inucncc on thc ovcrall cconomic lilc in Albania.
!t is in that contcxt as wcll that thc lounding ol thc Cctinjcbascd
Serbo-lbanian Bank (Srpsko-arbanaka banka) should bc lookcd at. Altcr
having somc dicultics with thc sharcholding Yugosla. Mercantile Bank
(Jugoslo.enska merkantilna banka), loundcd in 8clgradc in ++, somctimc
in latc March +:: two Zubcr brothcrs, Lalc and Nikola, sct about to cstab
lish a ncw Cctinjcbascd sharcholding company undcr thc changcd namc
Serbo-lbanian Bank.
6
Among thc rcasons lor this changc ol thc 8anks
namc and scat was, as statcd, thc dcsirc to dcvclop closcr rclations with
ncighbouring Albania and thcrclorc to supprcss lorcign inucncc in that
country.

Tc 8ank was sct up immcdiatcly altcr YugoslavAlbanian diplo

matic rclations had nally bccn cstablishcd in March +::. Tc Found
crs Asscmbly was hcld as carly as April thc samc ycar, and thc 8ank was
courtrcgistcrcd at Cctinjc on :o Junc +::.
8
!t commcnccd its opcration in
Scptcmbcr, lollowing thc Constitucnt Asscmbly ol Sharcholdcrs. Tc initial
capital ol +o million dinars was dividcd into +o thousand sharcs, with
ol thc capital payablc immcdiatcly. Tc largcst portion was in thc hands ol
thc Zubcr lamily ol Cctinjc. nc ol thc main goals ol thc Serbo-lbanian
Bank in its rst ycar ol opcration was to opcn a branch occ in Scutari, with
thc vicw to dcvcloping strongcr cconomic rclations with thc ncighbouring
country and improving mutual tradc, markcd by a slowdown in thc rst
ycars altcr thc war.

For thc sakc ol achicving optimum rcsults, thc Yugoslav

. Avramovski, !talijanska ckonomska pcnctracija u Albaniji +:+. godinc

|!talian cconomic pcnctration ol Albania +:+| in Istorija XX .eka (8clgradc,
+6), vol. \, +o.
6
Arhiv Srbijc i Crnc Gorc, Ministarstvo trgovinc i industrijc Kraljcvinc Jugoslavijc
|Archivc ol Scrbia and Montcncgro, Ministry ol Tradc and !ndustry ol thc Kingdom ol
Yugoslavia, hcrcaltcr: ASCG, 6|, F. +:, no ::6+.

ravni arhiv Crnc Gorc, Fond Srpskoalbanska banka |Statc Archivc ol Montcnc
gro, Fund ol thc ScrboAlbanian 8ank, hcrcaltcr: ACG, SA8|. Tc rccords ol this
lund arc unlcd. F. 6, copy ol thc 8anks lcttcr to thc National 8ank ol thc Kingdom ol
SCS, +6 Scptcmbcr +:.
8
Ibid. F. +o, copy ol thc 8anks lcttcr to thc Adriaticanubc 8ank |Jadransko-po-
duna.ska banka| in ubrovnik, July +:.

ASCG, 6+:::6+, rcport ol thc Managing 8oard ol thc ScrboAlbanian 8ank

lor +::.
S. Mii, ScrboAlbanian 8ank in Albania +:+: :+
govcrnmcnt mct thc nccds ol thc 8ank and grantcd it thc status ol a royal
privilcgcd trading agcncy, with scats at Scutari and urrcs.
+o
Howcvcr, bctwccn thc cnd ol +:: and thc cnd ol +: thc 8ank
did not opcratc in Albania. !t did rcnt prcmiscs in Scutari, but it ncithcr
opcncd its countcrs nor its doors as it had to wait lor thc ncccssary liccnscs
lrom thc Albanian authoritics.
++
Mcanwhilc, thc 8ank ccctcd all paymcnts
lor thc account ol thc Serbo-lbanian Bank in Albania and all paymcnts
with that country through a ccrtain Pashko Gurashi, an Albanian who ran
an cxchangc occ at Scutari and lunctioncd as an agcnt ol thc Yugoslav
bank.
+:
Tc 8ank issuc lurthcr worscncd with thc outbrcak ol thc Junc Rcvo
lution in Albania in +:. Tc govcrnmcnt was oustcd, its spcakcr Ahmcd
8cy Zogu
+
cd thc country and latcr sought rclugc in Yugoslavia, and thc
rthodox bishop Fan Noli bccamc hcad ol Albania. uring Fan Nolis six
month rulc, thc Yugoslav govcrnmcnt brokc up diplomatic rclations with
Albania. Tcy wcrc rccstablishcd only altcr Zogus Yugoslavassistcd rc
turn to powcr in cccmbcr thc samc ycar. Good rclations bctwccn thc two
countrics cstablishcd in carly +: gavc a lrcsh impctus to thc activitics
locuscd on thc Serbo-lbanian Banks opcration in Albania, an issuc which
undoubtcdly had bccn ncgotiatcd bctwccn Yugoslav ocials and Zogu dur
ing his stay in 8clgradc in +:.
+
!n parallcl with thc bordcr dcmarcation
+o
ACG, SA8 (rccords unlcd), F. , lcttcr ol thc Ministry ol Forcign Aairs ol thc
Kingdom ol SCS, Pov. , :+ cccmbcr +::. !t was cmphasizcd that thc agcncy was
not to rcccivc statc subsidy, cl. Milocvi & imi, Mcudravni ugovori.
++
ACG, SA8 (rccords unlcd), F. +o. Tc 8anks balancc shcct lor +: contains an
itcm rclating to thc rcnt ol occs and anothcr rclating to thc obtainmcnt ol a liccnsc in
Tirana amounting to +oo thousand dinars.
+:
Ibid. 8ishop ol thc Scrbian rthodox Church in Scutari \iktor Mihailovi was
nanccd through Gurashi.
+
Ahmcd 8cy Zogu was thc most inucntial Albanian politician in thc rst dccadc
altcr thc First Vorld Var. !n +:8 hc bccamc king undcr thc namc ol Zog ! and rulcd
Albania until thc bcginning ol thc Sccond Vorld Var. For morc dctail about his lilc,
scc J. Tomcs, King Zog of lbania: Self-made Monarch of lbania (Ncw York, :oo), 8.
J. Fischcr, King Zog and the Struggle for Stability in lbania (Ncw York, +8). For his
rclations with thc Kingdom ol Scrbia, scc . T. 8atakovi, Ahmcdbcg Zogu i Srbija
|Ahmcd8cy Zogu and Scrbia|, in Srbija :,:&. godine |Scrbia in ++6| (8clgradc: His
torical !nstitutc, +8), +6+.
+
Arhiv \ojnoistorijskog instituta |Archivcs ol thc Military Historical !nstitutc, hcrc
altcr: A\!!|, rcg. +, box 6+ g, laborat Albanija u pcriodu izmcdju dva rata |Study
Albania bctwccn thc two wars|, . Tc study was writtcn in + by an anonymous
author obviously wcll vcrscd in thc problcm ol YugoslavAlbanian rclations ol that pc
riod. According to him, it was agrccd with Zogu that Albania should allow that a bank
could bc cstablishcd with Yugoslav capital in Scutari.
8alcanica XXX\!! ::
ncgotiations, talks about cstablishing a bank with Yugoslav capital in Alba
nia commcnccd as carly as Fcbruary +:.
Tc action ol opcning a bank with Yugoslav capital in Albania was
undcrtakcn by thc Serbo-lbanian Bank, loundcd thrcc ycars carlicr with
cxactly that goal. As wc havc sccn, thc 8ank was owncd by thc Zubcr broth
crs ol Cctinjc. !n thc mcantimc, thc 8ank invcstcd lully its capital ol +o
million dinars. Tcrc arc somc grounds to assumc that a hall ol thc 8anks
capital ( million dinars) was providcd by thc Yugoslav govcrnmcnt, i.c. thc
Ministry ol Forcign Aairs.
+
Vhat is ccrtain, howcvcr, is that thc 8ank
rcccivcd thc samc amount as a loan lrom thc Pri.ileged National Bank ol thc
Kingdom ol Scrbs, Croats and Slovcncs.
At thc timc thc opcning ol a branch occ in Scutari was in prcpara
tion, Nikola Zubcr, a mcmbcr ol thc National Radical Party lrom Montc
ncgro, was thc Partys candidatc lor Cctinjc and 8ar County on thc parlia
mcntary clcctions hcld in Fcbruary +:. Tc rst candidatc on thc Radical
list lrom Montcncgro was Ministcr ol Financc Milan Stojadinovi, and
Nikola Zubcr was activcly involvcd in his clcction campaign. Tc Zubcrs
may havc uscd thcir closc rclations with thc ministcr to spccd up thc proccss
ol opcning thc branch occ and cnsurc as lavourablc conditions lor thc
8anks opcration in Albania as possiblc.
+6
Tc prcparations lor opcning thc branch occ in Scutari wcrc intcn
sicd in Fcbruary +: whcn thc Albanian authoritics issucd thc ncccssary
liccnccs, which was rcportcd to 8clgradc by !vo \ukoti, thc Counscllor in
Scutari.
+
n 6 March cvcrything was rcady lor thc opcning ccrcmony, and
Lalc Zubcrs approval and thc arrival ol thc dclcgation lrom Cctinjc wcrc
waitcd lor. !nlormcd that thc prcparations lor thc start up ol opcrations in
Albania wcrc complctcd, Lalc Zubcr, who was in 8clgradc, gavc his approv
al and, on + March, authorizcd Krsto Pcjovi, 8ank ircctor, to opcn thc
branch occ, stating that it was ncccssary to supply a lull rcport to thc Yu
goslav Pri.ileged National Bank and Ministry ol Financc in ordcr to obtain
thc ncccssary lunds lor opcning thc branch occ. A lcw days latcr, unawarc
+
Ibid.
+6
crbo Rastodcr, Politike borbe u Crnoj Gori :,::,:, |Political Strugglcs in Mon
tcncgro ++8+:| (8clgradc, +6), 66. Milan Stojadinovi was a rcprcscntativc ol
onc ol thrcc Radical lists lor Montcncgro. Nikola Zubcr was onc ol his closcst col
laborators in thc clcction campaign lcd in Montcncgro. Although thc availablc archival
matcrial docs not givc a clcar picturc, it sccms that thc rcasons lor cntrusting thc Zubcrs
with thc task ol cstablishing a bank in Albania may bc lound in thcir mutual conncc
tion.
+
ACG, SA8 (rccords unlcd), F. :, cablc ol Lalc Zubcr, 8clgradc, +8 Fcbruary
+:.
S. Mii, ScrboAlbanian 8ank in Albania +:+: :
ol thc dcvclopmcnts in Albania, Zubcr dcmandcd thc urgcnt opcning ol
thc branch occ. His commcnt cvcn il wc dont do anything spokc lor it
scll about thc intcntion to nish thc wholc busincss as quickly as possiblc.
+8

Tc hastc with which thc last stcp in thc proccss ol cstablishing a bank in
Albania was madc bccomcs undcrstandablc il wc know that it was in thosc
days that ncws bcgan to arrivc lrom Albania about a clash bctwccn Grcat
8ritain and !taly ovcr thc lounding ol an lbanian National Bank.
Namcly, in Fcbruary +: Zogu ncgotiatcd both with 8ritish Mid-
land Bank and with an !talian group ol bankcrs hcadcd by Prolcssor Mario
Albcrti, ircctor ol Credito Italiano. Midland Bank ocrcd to cstablish a
bank in Albania with a capital ol oo,ooo pounds, with Zogu rccciving
+oo,ooo pounds immcdiatcly to pay thc army, thc wholc amount would
havc bccn guarantccd by Albanian customs dutics and monopolics. !n par
allcl, ncgotiations wcrc conductcd in Romc, with promincnt Albanians, thc
Libohova brothcrs, acting as mcdiators, about cstablishing a bank with !tal
ian capital. Tc winncr was to bc dccidcd by thc amount ol bribc thc com
pctitors wcrc willing to pay lor this important conccssion.
+
Tc Yugoslav govcrnmcnt was activcly involvcd in thc compctition
lor cstablishing thc lbanian National Bank. Although prcoccupicd with
intcrnal problcms associatcd with thc Fcbruary parliamcntary clcctions, di
plomacy attcmptcd to build up its inucncc in Albania. n thc ncws about
thc 8ritish ocr, which causcd hugc cxcitcmcnt in thc Yugoslav public, thc
Ministcr ol Forcign Aairs Momilo Nini proposcd to Romc to cstablish
jointly a bank ol issuc in Albania, and in latc Fcbruary, Gcncral Alcssandro
8odrcro, !talian diplomat scatcd in 8clgradc, rcccivcd an ocr lrom 8cl
gradc lor invcsting !talian capital in thc Serbo-lbanian Bank.
:o
Tis is sup
portcd by an intcrcsting documcnt ol Fcbruary +:, Mcmorandum on
Albania, lound in thc archivcs ol thc Serbo-lbanian Bank.
:+
Tc documcnt
statcs that thc Serbo-lbanian Bank is owncd by a promincnt Montcncgrin
and proposcs that, lor thc sakc ol pcacclul cconomic pcnctration ol both
!taly and Yugoslavia in Albania, this 8ank bc givcn thc rolc ol thc ccntral
+8
Ibid., cablc ol Lala Zubcr, 8clgradc, :o March +:.
+
Fischcr, King Zog, 8.
:o
Gcncral 8odrcro, !talian diplomatic rcprcscntativc in 8clgradc, to Mussolini, : March
+:, Documenti diplomatici Italiani (hcrcaltcr: !), scr. \!!, vol. !!!, doc. +. 8o
drcro rclcrs to his prcvious cablc ol : Fcbruary, which has not bccn includcd in thc
publishcd collcction ol documcnts. Scc notc : with documcnt +, P. Pastorclli, Italia e
lbania :,:,:,: (Florcncc, +6), +o.
:+
ACG, SA8 (rccords unlcd), F. :o. xccpt lor thc datc, thcrc is nothing to indicatc
thc makcr ol this documcnt and its purposc. Analysis ol thc contcxt shows that thc
author is likcly to havc bccn somconc lrom thc 8anks managcmcnt.
8alcanica XXX\!! :
bank ol Albania.
::
Stating that thc 8anks capital is +o million dinars and
thc rcscrvc lund onc million, thc Mcmorandum proposcs an incrcasc ol thc
capital ol thc 8ank to o millions and a distribution ol thc capital whcrc
!taly should invcst onc hall, whilc thc othcr hall should bc dividcd bctwccn
thc Yugoslav govcrnmcnt and thc owncrs ol thc Serbo-lbanian Bank. As
lar as thc 8anks managcmcnt is conccrncd, thc Mcmorandum stipulatcd
that thc Managing 8oard bc composcd ol Yugoslav, !talian and Albanian
rcprcscntativcs !taly and Yugoslavia having lour rcprcscntativcs cach, and
Albania, onc.
:
Tc hcadquartcrs ol thc 8ank should bc in Scutari, although
somc othcr Albanian city is not rulcd out, whilc branch occs should bc
opcncd not only in Albania, but also in Yugoslavia and !taly. Tc Mcmo
randum, in lact, anticipatcs thc translormation ol thc Serbo-lbanian Bank
into thc lbanian National Bank authorizcd to issuc banknotcs, i.c. thc bank
ol issuc.
Tc Mcmorandum cmphasizcs yct anothcr and vcry important rolc
ol thc 8ank. !t should bc thc rcgulator ol thc cntirc nancial lilc ol Albania,
mcaning that no banking conccssions could bc approvcd without its knowl
cdgc.
:
To gain control ovcr all nancial conccssions in an undcvclopcd
country such as Albania was mcant to control its cntirc cconomic lilc and
thc stratcgy ol its dcvclopmcnt. Awarc ol thc cxtrcmc importancc ol thc
statcd proposal, thc Mcmorandum cnvisagcs a scparatc agrccmcnt bctwccn
8clgradc and Romc conccrning this mattcr. Tc rolc ol thc 8ank in thc
wholc projcct was that ol a guarantor ol thc cconomic lilc ol Albania.
:
!n mid March, whcn it bccamc clcar that Yugoslavia was going to gct
its bank in Albania, thc Yugoslav Ministcr ol Forcign Aairs Nini rcal
rmcd to thc !talian diplomat 8odrcro thc nccd lor thc two countrics joint
cconomic action in Albania,
:6
with thc lounding ol a bank ol issuc as thc
rst stcp. Nini ocrcd thc coopcration to !taly, cxplaining it by Yugosla
vias inability to cstablish such a bank on hcr own and by hcr dcsirc to prc
vcnt othcr grcat powcrs rst ol all Grcat 8ritain lrom doing busincss
::
Ibid.
:
Ibid.
:
Ibid.
:
Ibid. Tis Mcmorandum casts a ncw light on thc intcntions ol thc loundcrs ol thc
8anks Scutari branch occ. Contrary to thc opinion that it was cstablishcd as a rc
sponsc ol thc Yugoslav party to !talys action in ordcr to compctc against !talian inu
cncc, as proposcd by . Avramovski (!talijanska ckonomska pcnctracija, +), it sccms
that thc 8ank was mcant to play a ccntral rolc in thc cconomic lilc, and so its cstablish
mcnt ran in parallcl with thc cstablishmcnt ol thc lbanian National Bank.
:6
!, scr. \!!, vol. !!!, doc. 6. Also quotcd in Avramovski, !talijanska ckonomska
pcnctracija, ++.
S. Mii, ScrboAlbanian 8ank in Albania +:+: :
in Albania.
:
And thcn inlormation lcakcd out that an agrccmcnt on cstab
lishing anothcr bank in Albania had bccn concludcd, this timc as a rcsult
ol thc Albanian Ministcr ol Financc Myt Libohovas succcsslul mission to
Romc.
:8
!ndccd, alrcady on + March, thc Protocol on thc stablishmcnt
ol thc lbanian National Bank was signcd by thc statc ol Albania and thc
group lcd by thc !talian Mario Albcrti, only two days altcr thc branch occ
ol thc Serbo-lbanian Bank in Scutari had bccn opcncd.
Tc tcxt ol thc Convcntion on thc stablishmcnt ol thc lbanian
National Bank with accompanying documcnts was cndorscd on + March
+: and ocially signcd lour days latcr.
:
Tc Convcntion stipulatcd thc
8anks capital ol +:. million gold lrancs, dividcd into thousand com
mon sharcs ol : goldcn lrancs cach, and +oo thousand loundcrs sharcs
with a valuc ol +.: lrancs pcr sharc.
o
!t was stipulatcd that ol com
mon sharcs bc bookcd lor Albanian citizcns, and that thc rcst bc distributcd
among thc Kingdom ol SCS (+o), Basler Kommer.ial Bank (also +o),
Banque Belge pour l Etranger (,) and !taly, which, howcvcr, obtaincd thc
largcst portion (:6) togcthcr with all loundcrs sharcs.
+
Tc cstablishmcnt ol thc lbanian National Bank camc as a shock to
thc Yugoslav party which, as wc havc said, had dicrcnt plans and consid
crcd thc joint cstablishmcnt ol a bank ol issuc as an act ol good will on thc
part ol thc Kingdom ol SCS in accordancc with thc Yugoslav!talian Pact
ol Fricndship.
:
8ranko Lazarcvi, ncw diplomatic rcprcscntativc in Alba
nia who had arrivcd in Tirana only a lcw ol days bclorc thc Convcntion was
madc public, was livid and suggcstcd that thc Albanian govcrnmcnt should
rcqucst a participation ol Yugoslav capital in ordcr to cnsurc control ovcr
opcrations pcrlormcd by thc !talians.

Unlikc thc Yugoslav plan on parity

rcprcscntation bctwccn !talians and Yugoslavs in thc managcmcnt ol thc
8ank, including onc rcprcscntativc ol Albania, as stipulatcd by thc Mcmo
randum and proposcd to 8odrcro by Nini, thc Convcntion on thc stab
lishmcnt ol thc National 8ank ol Albania ol + March +: stipulatcd that
:
Ibid.
:8
Tc agrccmcnt was madc public on + March +:. ASCG, Fond Alcksandra Cincar
Markovia |Fund ol Alcksandar CincarMarkovi, hcrcinaltcr: +o), F. +, Pov. no. 86,
rcport ol military rcprcscntativc Tanasijc ini, Tirana, + March +:6.
:
Avramovski, !talijanska ckonomska pcnctracija, ++.
o
Ibid., +:.
+
n thc Albanian National 8ank, scc: \idan . 8lagojcvi, Albanska narodna banka
|Albanian National 8ank|, Ekonomist \!, No. +, January +:6, 68.
:
!, scr. \!!, vol. !!!, doc. o, Avramovski, !talijanska ckonomska pcnctracija,
++.

Ibid.
8alcanica XXX\!! :6
thc ccntral managcmcnt bc composcd ol two rcprcscntativcs ol !taly and
Albania, and that thc prcsidcncy and dccisivc votc bclong to thc rcprcscnta
tivc ol !taly.

!n this ncw situation, thc Yugoslav govcrnmcnt hopcd that,

in spitc ol its small +oparticipation in thc owncrship ol thc capital, it
would still bc ablc to takc ovcr thc Albanian sharc ol , thcrcby gaining
control ol thc bank and rising abovc thc rolc ol a mcrc obscrvcr.

Howcvcr,
Romc was prcparcd lor such a situation. Mussolini scnt clcar instructions
rcgarding this mattcr to thc !talian diplomatic rcprcscntativc. l thc
ol sharcs originally intcndcd lor thc Albanians, thc ucc rcqucstcd that
o bc ocrcd to thc Albanians rcsiding in !taly, which mcant thcy would
lall undcr thc sway ol !talian capital. Morcovcr, thc rcmaining + was
purchascd by an !talian nancial group.
6
Tus, having purchascd all sharcs
owncd by Albanian citizcns, thc !talian party outwittcd thc Yugoslavs and
took ovcr control ol thc 8ank.
Tcsc dcvclopmcnts, as it sccms, mcant that thc raison dctrc lor thc
branch occ ol thc Serbo-lbanian Bank, as statcd in thc abovcmcntioncd
Fcbruary Mcmorandum, ccascd to cxist. Although it lost thc battlc lor thc
ccntral bank, thcrc wcrc still hopcs that it might maintain its rolc in Albania
by cnsuring that thc quota Yugoslavia should havc participatcd with in thc
capital ol thc lbanian National Bank includcd thc 8ank with all its currcnt
asscts and invcstcd capital.

As an altcrnativc, il this is not possiblc bc

causc othcr capitalists, loundcrs ol thc lbanian Bank of Issue, disagrcc, thc
Serbo-lbanian Bank proposcd that thc amount our statc shall participatc
with bc rcgistcrcd through our 8ank and that our 8ank rcprcscnt it in thc
managcmcnt ol thc Bank of Issue. Nini was callcd to protcct cndangcrcd
intcrcsts, rcmindcd ol thc political and cconomic importancc ol thc 8anks
pcnctration into Albania, and solicitcd to grant thc rcqucst ol thc Serbo-
lbanian Bank, thc rst and only pionccr in Albania.
8
!n spitc ol cvcrything, thc Serbo-lbanian Bank continucd to opcr
atc but with a signicantly changcd rolc. Soon upon its cstablishmcnt, thc
branch occ drcw promincnt mcmbcrs ol thc Scrbian community lrom
Scutari and scvcral surrounding villagcs, rcprcscntativcs ol thc Yugoslav

Ibid.

ASCG, +o, F.+, Pov. no. 86, rcport ol Tanasijc ini, military rcprcscntativc, Tirana,
+ March +:6.
6
Rosclli, Italy and lbania, .

ASCG, Ministarstvo inostranih poslova Kraljcvinc Jugoslavijc, politiko odcljcnjc

|Ministry ol Forcign Aairs ol thc Kingdom ol Yugoslavia, Political cpartmcnt, hcrc
inaltcr: |, F. , arch. unit +8, shcct , lcttcr ol thc Serbian-lbanian Bank to thc
Ministry ol Forcign Aairs, :8 April +:.
8
Ibid.
S. Mii, ScrboAlbanian 8ank in Albania +:+: :
Consulatc and rthodox clcrgy. Tc Yugoslav Consulatc opcncd its currcnt
account in thc 8ank, and !vo \ukoti, thc Counscllor, bccamc a mcmbcr ol
thc Managing 8oard.

Rcprcscntativcs ol thc Scrbian rthodox Church

in Albania, hcadcd by 8ishop \ictor Mihailovi, and thc clcrgy lrom thc
city and surrounding Scrbian villagcs also bccamc clicnts ol thc 8ank.
o

Among its clicnts wcrc somc provcn Albanian lricnds ol thc Kingdom ol
SCS, thc most important bcing thc Tirana 8ishop \isar (\isarion Xhu
vani, bishop ol thc Albanian rthodox Church).
+
Tc branch occ also
did busincss with thc promincnt proYugoslav Albanian Ccno 8cj Krycziu,
thc promincnt Mirdit tradcr Zcl Ndozi (Noci:) and othcrs. Tradcr Riza 8cj
Kopliku, an inucntial proYugoslav Muslim lrom Scutari, also bccamc a
mcmbcr ol thc Managing 8oard.
:
Upon thc cstablishmcnt ol thc branch occ ol thc Serbo-lbanian
Bank, a Privilcgcd Trading Agcncy was opcncd undcr thc samc rool and
rm, with agcnts in thc Albanian citics ol urrcs (urazzo) and Sarandc
(Santi Quaranta), and thc goal to cnhancc tradc bctwccn thc Kingdom ol
SCS and Albania. To this ccct, as ol May +:, thc branch occ launchcd
a broad advcrtising campaign covcring a numbcr ol domcstic and lorcign
banks, all chambcrs ol commcrcc, as wcll as companics which had alrcady
dcvclopcd busincss rclations with Albania. Yugoslav chambcrs ol commcrcc
and tradc wcrc consultcd on thc possiblc assortmcnt ol products to bc im
portcd into Albania, and particularly into Scutari. Givcn thc impcnding
tradc agrccmcnt bctwccn thc two countrics, thc chambcrs wcrc also con
sultcd on thc rangc ol products lor which customs ratcs should bc rcduccd,
or dutics complctcly abolishcd.

Tc branch occ cmphasizcd that its op

crations wcrc locuscd on rcmaining compctitivc with !talian products on
thc Albanian markct.

!n ordcr to incrcasc Yugoslav imports into Albania,

thc 8ank sought to cstablish busincss rclations with rms cngagcd in thc

8csidcs \ukoti, othcr occrs ol thc Consulatc also had thcir accounts in thc 8ank.
o
ACG, SA8 (rccords unlcd), F. +8, balancc shccts lor +:. Tcrc is an intcrcsting
lcttcr (ibid. F. :+) ol parish pricst Laza in which hc complains that hc was unablc to
takc his advancc salary duc to thc lack ol moncy. Tc lcttcr is datcd +: Junc +:.
+
\isarion had a currcnt account in napoleondors (Napolcon dr) lor which thc branch
occ rcccivcd ncccssary writtcn guarantccs lrom thc Consulatc ol thc Kingdom ol
SCS in Scutari (ibid. F. +8, balancc shccts lor +:).
:
Tc third mcmbcr ol thc Managing 8oard was dircctor ol thc branch occ. !nitially,
that lunction was pcrlormcd by a ccrtain Galliani, but about thc middlc ol +: hc was
rcplaccd by Julijc Antcri.

ACG, SA8, F. :o, circular lcttcr to Chambcrs ol Cralts and Commcrcc in thc King
dom ol SCS, ++ August +:.

Ibid.
8alcanica XXX\!! :8
manulacturc and cxport ol ccrtain products. !t was intcrcstcd in timbcr, cc
mcnt and loods such as sugar, our, bccr and corn. Firms that had alrcady
dcvclopcd busincss rclations with Albania wcrc rcqucstcd to cntrust thcir
agcncy opcrations to thc 8ank.

At thc samc timc, thc 8ank rcquircd lrom

Yugoslav diplomatic missions in Albania to supply statistical data on im
ports into and cxports lrom Albania.
6
Tc rcsponsc varicd lrom outwardly
to actually intcrcstcd, thc lattcr bcing thosc chambcrs ol commcrcc and
banks which had alrcady dcvclopcd rclations with Albania. Tis is particu
larly truc lor Split Chambcr ol Commcrcc which, awarc ol thc importancc
ol a commcrcial and cconomic action in Albania, adviscd thc 8ank to cn
hancc tradc bctwccn thc Kingdom ol SCS and Albania through its actions.
Undcrlining natural tics bctwccn Albania and almatia, Split Chambcr
was intcrcstcd in sclling somc particular products on thc Albanian markct,
most ol all ccmcnt.

Tc branch occ ol thc Serbo-lbanian Bank in its

turn gathcrcd inlormation about somc Albanian busincssmcn lor Yugoslav
industrials.
Vithin months ol thc bcginning ol its opcration, with thc lbanian
National Bank and thc urrcs branch occ ol thc Grcck Bank of thens, also
opcncd in +:, as compctitors, thc Scutari branch occ ol thc Serbo-l-
banian Bank laccd problcms. Sincc its scopc ol opcration was quitc limitcd,
thc branch occ complaincd to thc Cctinjc hcadquartcrs about insucicnt
cash holdings, an amount not cxcccding oo,ooo dinars. !n thcir words, this
was not cnough to start and dcvclop any kind ol busincss in Scutari.
8
Altcr
thc initial spccdy proccss, it bccamc obvious that thc branch occ, losing

!n rcply to this rcqucst, somc rms askcd lor morc dctailcd inlormation, but thcrc
wcrc also thosc which rcplicd that thcy had alrcady had thcir agcnts, i.c. that thcy did
not intcnd to sharc warchouscs with thc 8ank and put thcir sta undcr its control (lct
tcr ol thc ccmcnt lactory Lavocat & Cia lrom Split ol Scptcmbcr +: can scrvc as
an cxamplc, ibid.).
6
Tc rcply ol 8rana imitrijcvi, hcad ol thc Yugoslav Mission in \alona, was ncgativc
as that kind ol data was noncxistcnt in Albania in +: (ibid. + ctobcr +:).

Ccmcnt was among Yugoslav major cxports to Albania. !n ++ thc Chambcr ol Split
cxportcd ccmcnt worth onc million dinars to Albania, but it was notcd that this only
accountcd lor about o. ol thc total cxport to Albania, which amountcd to + million
dinars (Split Chambcr to thc 8ank, ibid.).
8
!ntcrcsting in this contcxt is an obscrvation ol thc journalist Milosav Jcli who vis
itcd Scutari in August +:. Spcaking about thc look ol thc city, hc obscrvcd: Tcrc
dominatcs a ncw rm ol thc ScrboAlbanian 8ank. !t looks good, but ! would say that
thc busincss is not divcrsicd cnough. Anyway, it all dcpcnds on thc sizc ol capital.
M. Jcli, lbanija, .apisi o ljudima i dogaajima (8clgradc, +), ++6. As an illustrativc
cxamplc ol thc wcak position causcd by lack ol moncy, thc branch occ statcd thc lact
that cvcn thc Yugoslav Consulatc in Scutari was lorccd to ncgotiatc chcqucs in lrancs
S. Mii, ScrboAlbanian 8ank in Albania +:+: :
in compctition with thc lbanian National Bank, was lclt without a clcar
stratcgy. As thc original idca ol bccoming thc ccntral and only bank cndcd
in lailurc, and thc availablc amount ol moncy could not satisly thc nccds
ol busincss, thc hcadquartcrs was cxpcctcd to draw up guidclincs on thc
branch occs lurthcr opcrations.

Vith thc lounding ol thc lbanian National Bank, on : Scptcmbcr

+:, scvcral banks, lcd by thc Beogradska .adruga (8clgradc Crcdit Union),
cntcrcd into thc Yugoslav +oparticipation in its sharc capital.
o
bviously
at thc rcqucst ol thc Serbo-lbanian Bank, Lalc Zubcr was appointcd as
rcprcscntativc ol thc Yugoslav party in its Managing 8oard.
Tc 8ank survivcd in Albania, but continucd to lacc thc samc prob
lcms throughout thc lollowing ycar. !t complctcd thc rst opcration pcriod
ol +:6 with a minimum prot, almost cntircly lrom cxchangc opcrations.
!n its rcport to thc hcadquartcrs, it complaincd again about pcrmancnt lack
ol thc cash holdings ncccssary lor dcvcloping busincss opcrations in Al
bania.
+
!ts busincss intcrcsts in Albania, howcvcr, locuscd morc and morc
on maintaining a stcamship linc on Lakc Scutari and on obtaining mining
conccssions lor coppcr in thc rcgion ol Puka.
nc ol thc 8anks goals, important at thc momcnt ol its lounding,
was to start a rcgular stcamship linc Rijcka\irPlavnicaScutari on Lakc
Scutari and thc 8ojana Rivcr. Tc 8ank startcd a shipping company, Jadran-
sko-skadarska plo.idba (AdriaticScutari Shipping) and cstablishcd thc linc,
opcrating with statc subsidics. Howcvcr, not cvcn this busincss ran smooth
ly. !n March +:, duc to irrcgular paymcnts ol subsidics and compctition
with army stcamships, thc Serbo-lbanian Bank suspcndcd thc linc. !t was
rcstartcd only altcr a ncw agrccmcnt with thc govcrnmcnt was rcachcd in
autumn thc samc ycar.
:
!n carly +:, thc problcm ol compctition bctwccn
thc 8ank and thc Army was rcsolvcd. Namcly, according to an agrccmcnt
and dollars clscwhcrc rathcr than with us. ACG, SA8 (rccords unlcd), F. :o, Scutari
branch occ to thc Cctinjc hcadquartcrs, : August +:.

Ibid.
o
According to Rosclli (Italy and lbania, ), thc Yugoslav partys sharc was 8..
8csidcs Beogradska .adruga, thc consortium ol Yugoslav banks includcd Zagrcbbascd
Srpska banka (Scrbian 8ank), 8clgradcbascd Jadransko-poduna.ska banka (Adriatic
anubc 8ank) and thc Cctinjcbascd Serbo-lbanian Bank. l thc total numbcr ol
,ooo sharcholdcrs votcs, thc Kingdom ol SCS had o,ooo. 8lagojcvi, Albanska
narodna banka, 8+8:.
+
ACG, SA8 (rccords unlcd), F. o, rcport ol thc Scutari branch occ to thc Hcad
quartcrs at Cctinjc about thc busincss rcsults lor thc rst scmcstcr ol +:6, undatcd. Tc
branch occ madc a prot ol only ,+8+ dinars.
:
Ibid.
8alcanica XXX\!! :6o
concludcd with thc Navy ol thc Kingdom ol thc SCS at thc cnd ol Janu
ary, thc Serbo-lbanian Bank was grantcd to cxploit a ccrtain numbcr ol
military ships, whilc bcing obligcd to transport troops and military sup
plics at rcduccd larcs.

Tc AdriaticScutari Shipping ccascd opcrating in

+:8, whcn thc Ministry ol Transportation ordcrcd a mcrgcr ol shipping
companics in Zcta istrict and translcrrcd its cct to Boka, a Kotorbascd
shipping company.

ncc in Albania, thc Serbo-lbanian Bank showcd much intcrcst in

obtaining ccrtain busincsscs, particularly conccssion lor coppcr orc dcposits
in Puka, ncar Scutari in northcrn Albania.

As thc orc dcposits wcrc on

thc PrizrcnScutari road, ol a grcat military and stratcgic intcrcst, thc mo
tivcs lor obtaining this conccssion wcrc not only cconomic but also political.
Tcrclorc, thc 8anks corts wcrc supportcd by thc Yugoslav govcrnmcnt.
6
!n spring +:, immcdiatcly upon thc cstablishmcnt ol thc Scutari
branch occ, thc Serbo-lbanian Bank, backcd by thc statc, sct about ob
taining this conccssion lrom thc Albanian govcrnmcnt. !n carly May, Niko
la Zubcr and two mining cnginccrs, Malicki and Rusovjan, lclt Cctinjc lor
Scutari in ordcr to cxplorc thc dcposits.

Altcr thc initial succcss, howcvcr,

in thc sccond hall ol +: a slowdown cnsucd, rcccting thc straincd rcla
tions bctwccn thc two countrics. !t was only altcr thc bordcr was nally
drawn at St. Naum and \rmos, and ncgotiations rcsumcd, that Puka rc
surlaccd as an issuc at thc intcrstatc lcvcl in thc autumn ol +:. 8ascd on
Zogus rcpcatcd assuranccs to Lazarcvi to thc ccct that wc considcr this
mattcr donc, it sccmcd that thc only thing lclt to bc donc was thc ratica
tion ol thc conccssion by thc Albanian Parliamcnt and Scnatc. n scvcral
occasions, Zogu assurcd 8clgradc via thc Yugoslav diplomatic rcprcscnta
tivc that thc issuc ol Puka was rcsolvcd and that thc conccssion would bc

Ibid., F. 6, copy ol thc contract bctwccn thc commandcr ol thc Zcta ivision Zonc
and thc managcmcnt ol thc ScrboAlbanian 8ank lor thc transport ol troops and mili
tary matcrial on Lakc Scutari. !n carly +:6 thc AdriaticScutari Shipping startcd thc
stcamship linc ScutaribotiUlcinj8ar.

Ibid., F. , rcport ol thc Serbo-lbanian Bank Managing 8oard, : Junc +:. Ac

cording to thc 8oard, thc 8ank invcstcd most ol its capital into 8oka Company.

Coppcr cxploration in thc arca ol Puka had bccn startcd during thc First Vorld Var,
in ++6, by an Albanian, Lcc 8orici. ASCG, Ministarstvo inostranih poslova Kraljcvinc
Jugoslavijc, Konzularnoprivrcdno odcljcnjc |Ministry ol Forcign Aairs ol thc King
dom ol Yugoslavia, ConsularCommcrcial cpartmcnt, hcrcinaltcr: ASCG, M!P KJ,
KP|, rccords undcr ling, F. !! 6, !! 8, Pov. no ++, rcport ol thc diplomatic rcprc
scntativc j. Nastasijcvi, Tirana, +o Junc +o.
6
Avramovski, !talijanska ckonomska pcnctracija, +68.

ACG, SA8 (rccords unlcd), F. :, copy ol cablc ol thc Serbo-lbanian Bank to Lalc
Zubcr in 8clgradc, May +:.
S. Mii, ScrboAlbanian 8ank in Albania +:+: :6+
grantcd to thc Kingdom ol SCS, but months passcd and thc mattcr rc
maincd at a standstill.
8
A part in thc aair was playcd by thc 8ritish, who
actcd in accordancc with thcir intcrcsts, but also by thc !talians, guidcd by
thc samc aspccts ol thc mattcr as 8clgradc, its stratcgic and commcrcial
importancc. !t was only altcr thc Yugoslav party promiscd Ahmcd Zogu
: ol thc valuc ol thc conccssion, that thc proccdurc was continucd, and in
spring +:6 thc contract was raticd,

at rst by thc Albanian Parliamcnt

and, in latc April, by Scnatc.
Tc Serbo-lbanian Bank as thc holdcr ol thc conccssion was to sct
up a company lor thc cxploitation ol Puka within vc months, as wcll as to
ocr o ol thc sharcs to Albanian citizcns within two months ol rcgistra
tion. !n thc cvcnt ol insucicnt intcrcst, howcvcr, thc conccssion holdcr was
rcquircd to purchasc thc rcmaining sharcs. xploration was duc to bcgin
thrcc months lrom thc datc ol thc cstablishmcnt ol thc company.
6o
Undcr
Conccssion Contract, thc holdcr was to pay an annual sum ol +. goldcn
lrancs pcr hcctarc lor land lcasc costs. Tc Albanian govcrnmcnt rcquircd
ccrtain privilcgcs oncc cxcavation should bcgin, and that all cmployccs bc
Albanian cxccpt cxpcrts ol whom thcrc arc nonc in Albania.
6+
!n spitc all corts to raisc thc startup lunds, thc Zubcr brothcrs
lailcd. Namcly, oncc thc company Coppcr Mincs Puka was cstablishcd,
somctimc in mid August bcgan thc twomonth pcriod sct lor thc rcgis
tration ol sharcs. ut ol thc planncd capital ol vc million gold lrancs
dividcd into :oo,ooo sharcs, at thc cnd ol thc dcncd tcrm +:o,ooo sharcs
wcrc rcgistcrcd, ,oo ol which wcrc in thc hands ol thc Zubcrs.
6:
bvi
ously, this was insucicnt, as thc 8ank lost thc conccssion it had obtaincd.
6

8
ASCG, +8, shcct 8o, Pov. no :8, cablc ol thc diplomatic rcprcscntativc
Lazarcvi to 8clgradc, + Fcbruary +:6. Lazarcvi was suspicious ol Zogus willing
ncss to grant thc Puka conccssion to Yugoslavia and cxplaincd thc cndlcssly dclcrrcd
ratication by thc Albanian prcsidcnts dcsirc to arousc 8ritish and !talian intcrcst in
thc conccssion.

ASCG, +o, F.+, K. Pov. no 6, rcport ol thc military rcprcscntativc, Tirana, +

Fcbruary +:6.
6o
ASCG, M!P KJ, KP (rccords undcr ling), F. !! 6, !! 8, Pov. no ++, rcport ol thc
rcprcscntativc j. Nastasijcvi, Tirana, +o Junc +o.
6+
Ibid. Tc holdcr ol thc conccssion had to pay to thc Albanian statc a ccrtain part ol
incomc, as wcll as to allocatc +o ol thc cxcavatcd or proccsscd orc to Albania at +o
rcduction ol thc currcnt pricc on thc uropcan markct.
6:
ACG, SA8 (rccords unlcd), F. , lcttcr ol thc Scutari branch occ to thc Serbo-
lbanian Bank at Cctinjc, + ctobcr +:6.
6
ASCG, M!P KJ, KP (rccords undcr ling), F. !! 6, !! 8, Pov. no ++, rcport ol thc
diplomatic rcprcscntativc j. Nastasijcvi, Tirana, +o Junc +o. Rcasons lor thc lailurc
should bc nd also in thc lact that thc rcsponsc ol thc Albanians was cxtrcmcly low in
8alcanica XXX\!! :6:
Morcovcr, thc 8ank incurrcd signicant nancial losscs.
6
Tc conccssion Tc conccssion
was rcturncd to its original holdcr, 8orici. !n Junc +: it changcd hands
again as its owncr bccamc an !talian marquis, Gactano di Suni. Hc suc
cccdcd in cstablishing a company lor thc cxploration and cxploitation ol
Puka, Societa Italo-Schipetare per lo Sfruttamento di Minerio Puka.
6
Political
gamcs surrounding thc Puka coppcr dcposits bccamc cvcn morc cvidcnt
oncc thc minc bcgan to work. Tc quality and quantity ol thc orc could not
justily intcrcst in thc minc, with thc inacccssibility ol dcposits rcquiring
construction ol a railway as an additional disadvantagc.
66

Facing numcrous problcms in all clds ol its opcration in Albania,
thc Managing 8oard ol thc Serbo-lbanian Bank dccidcd to closc its branch
occ in Scutari at its mccting ol + March +:.
6
Undoubtcdly, thc dccision
was inucnccd by scvcral rcasons ol cconomic and political naturc, thc most
important bcing thc 8anks busincss lailurcs. Most ol thc blamc was laid on
its opcrations in Albania, whcrc, according to thc managcmcnts cstimatcs,
thc 8ank had incurrcd losscs amounting to as much as ,6+,:6.6 dinars.
As a rcsult, thc 8anks capital droppcd lrom tcn to vc million dinars.
68

Tc dccision to closc thc branch occ was inucnccd by thc ncws that thc
National Bank of lbania was planning a branch occ in Scutari, but also
thc said pcriod thcy rcgistcrcd only +o sharcs (ACG, SA8, F. , lcttcr ol thc Skhodra
branch occ to Cctinjc, + ctobcr +:6).
6
Tc 8ank lost ,ooo gold lrancs (+o Napolcondor) dcpositcd with thc Albanian
statc as guarantcc lor thc minc (ASCG, M!P KJ, KP (rccords undcr ling), F. !! 6,
!! 8, Pov. no ++, rcport ol thc diplomatic rcprcscntativc j. Nastasijcvi, Tirana, +o
Junc +o. !n thc rst hall ol +:6, up to thc momcnt thc conccssion was obtaincd, thc
total dcbt lor Puka was cstimatcd at about 8,ooo napoleondors (c. +.6 million dinars at
thc timc). ACG, SA8 (rccords unlcd), F. o, rcport ol thc Scutari branch occ to
thc Cctinjc hcadquartcrs on busincss rcsults lor thc rst pcriod ol opcration ol +:6,
undatcd.
6
Ibid.
66
Avramovski, !talijanska ckonomska pcnctracija, +68.
6
ACG, SA8, (rccords unlcd), F. , copy ol a lcttcr ol thc Serbo-lbanian Bank
hcadquartcrs to thc Scutari branch occ, +6 Fcbruary +:.
68
ASCG, 6+:::6+, rcport ol Managing and Supcrvisory 8oards ol thc Scrbo
Albanian 8ank, Cctinjc, : cccmbcr +:. Tc consultcd documcnts do not cxplain
how such a hugc loss was incurrcd. !t may only bc assumcd that, cxccpt thc losscs gcn
cratcd by Puka, a portion ol this amount might havc had to do with thc withdrawal ol
thc allcgcd govcrnmcnt sharc (Ministry ol Forcign Aairs) in thc 8ank. !t is intcrcsting
that thc Sharcholdcrs Asscmbly ol +: Junc +: conrmcd a loss ol only +8,:.
dinars (ibid., opcration and balancc rcport ol Managing 8oard ol Serbo-lbanian Bank
Cctinjc lor +:6). Tc tcxt ol thc Pact in: Momir Stojkovi, Balkanski ugo.orni odnosi
:&:,,&, vol. !! |8alkan Contractual Rclations +86+6| (8clgradc, +8).
S. Mii, ScrboAlbanian 8ank in Albania +:+: :6
by dctcriorating YugoslavAlbanian political rclations in thc wakc ol thc
Pact ol Fricndship and Sccurity, known as thc First Tirana Pact, which !taly
and Albania signcd on :6 Novcmbcr +:6. Tis dctcrioration culminatcd
in thc brcakup ol diplomatic rclations in May +:. Tc dccision to closc
thc branch occ ol thc Serbo-lbanian Bank in Albania was carricd out in
thc coursc ol +:.
Faculty of Political Sciences
Uni.ersity of Belgrade
UDC &.:(,,.:::,,&.)(c,:):,::,: