FINANCIAL SERVICES AND CHARITY WORK OF OSTASHKOV MUNICIPAL COMMUNITY BANK

FINANCIAL SERVICES AND CHARITY WORK OF OSTASHKOV MUNICIPAL COMMUNITY BANK

Authors

  • Н.В. Середа

Keywords:

Abstract

This article explores the history of creation of Ostashkov municipal community bank. The author focuses on peculiarities of banking services provided by the bank. It was one of the two municipal banks established in Russia in the reign of Alexander I. The major peculiarity of the bank consisted in the fact that its services were secured by the property of all the towndwellers. The bank loans were disbursed at 10% interest rate and 4% out of this amount was allocated for municipal needs. The bank mainly aimed to contribute to the development of industries and trade in Ostashkov as well as to accumulate the financial resources needed to establish and run municipal charity institutions. Unlike other banks and monetary institutions, Ostashkov bank would disburse loans and offer other bank services, i.e., accepting money for safe-keeping (including ondemand deposits) and registering bills. The bank widely practiced the socalled «timeless deposits»: the bank clients might wish to donate the interests earned by these deposits to local monasteries, town churches, municipal schools and shelters for senior people.

Published

2023-05-16
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