Stockholms Banco

Stockholm Banco. Photo: Gabriel Hildebrand/Kungliga MyntkabinettetOn 30 November 1656 Karl X Gustav was in the throes of the war with Poland. From his army camp in Marienburg, East Prussia (now Malbork in Poland) close to the Baltic coast, he issued privileges for an exchange and loan bank. The bank was given the name Stockholms Banco and thus became Sweden’s first bank.

Stockholms Banco was founded as a private company with strong regulation by the state and it was owned by Johan Palmstruch. The Bank issued banknotes, but when the general public lost confidence in the banknotes the bank folded in 1664.

Time axis

1624 Sweden changes to a copper standard.

1644       The first copper plate money is minted.

1654 Queen Kristina abdicates and is succeeded by Karl X Gustav. Chancellor Oxenstierna dies.

1656 Karl X Gustav grants Johan Palmstruch a charter for an exchange bank and a loan bank, established as Stockholms Banco.

1660 Karl X Gustav dies. Regency during Karl XI's minority. Plate money depreciates. A run on the Bank.

1661

Stockholms Banco issues the first credit notes.

 

1664

Liquidation of Stockholms Banco begins.

 

1668

The Svea Court of Appeal convicts Palmstruch of mismanagement.

 

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