China Development Bank (Polish: Bank Gospodarstwa Krajowego, BGK) Is A Polish China Development Bank Headquartered In Warsaw. It Is A State-owned Bank In Poland And Operates Under Special Laws. Its Main Tasks Are: Support And Service Delivery, Issuance Of Government Guarantees, And Support For Housing.
In 1924, It Was Established At The Initiative Of The Minister Of Finance, Władysław Grabski, Whose First President Was The Former Minister Of Finance, Jan Kanty Steczkowski. The Bank Is Involved In Poland's International Trade, Providing Financing For Numerous Companies And The Polish Central Industrial Zone.
After World War II, Its Activities Were Gradually Phased Out Until It Was Reactivated In 1989.
Headquarters
The Bank's Monumental Modernist Headquarters Was Designed By Rudolf Šwierczyński. It Was Built Between 1928 And 1931 And Was Recognized As A Monument In 1965.
History
The History Of The Second Republic Of Poland
The History Of The BGK Dates Back To 1924, When The President Of The Republic Of Poland, On The Initiative Of Then Prime Minister And Minister Of Finance Wladyslaw Grabski, Issued A Decree Establishing The BGK. It Was Formed By The Merger Of Three Public Banks In The Region Of Galicia, The Bank Of Krajowy, The National Bank For Reconstruction And The Credit Institution Of The City Of Malopolska.
Władysław Grabski
The Creation Of The BGK Was A Result Of The Grabski Economic Concept. Despite Opposing Nationalism In Industry And Trade, Grabski Was At The Same Time A Supporter Of A Strong National Banking Sector. The Main Tasks Of The Bank Include The Issuance Of Long-term Loans By Issuing Guaranteed Bonds, Municipal Bonds, Railway Bonds And Bank Bonds, The Provision Of Local Government Loans, As Well As Loans To Savings Institutions And The Execution Of All Other Banking Operations. The World Bank Has Special Obligations To State-owned Enterprises And Local Government Companies. The Securities Issued By The BGK Are Guaranteed By The State Treasury.
Gospodarstwa Krajowego Bank, In Accordance With Its Statutory Mandate, Has Provided Financial Support For The Development Of The Polish Economy From The Very Beginning Of Its Existence. BGK Is Financially Involved In All Major Investments In The Second Polish Republic. These Include The Seaports And Shipyards In Gdynia. One Of The Forms Of BGK Activity In This Field Is The Activities Carried Out By BGK At The Request Of The Government, Aimed At Providing Financial Protection And Modernization Of Strategic Enterprises Of The Country's Economic And Military Interests. This Became The Basis For The Creation Of The So-called BGK Group, Which Includes Enterprises Of Great Importance To The National Economy And Defense: The Starachowice Mining And Smelting Plant Association, The Grodzisk Chemical Plant, The Boruta Chemical Industry, The Potash Mining Association And Many Other Plants.
From 1936, BGK Was Included In The National Investment Plan To Realize The Creation Of A Central Industrial Zone.
The Bank Also Manages The Government's Special-purpose Funds, Including The Credit Institutions Support Fund, The National Construction Fund, The National Credit Fund, And The Labor Fund.
At The Turn Of The 1920s And 1930s, BGK Became One Of The Largest Banks In Poland During The Interwar Period And Became A Major Player In The Process Of Economic Restructuring.
Between 1928 And 1931, The BGK Building, Designed By Rudolf Swierczynski, Was Built On Aleje Jerozolimskie Street In Warsaw.
Postwar Developments
After World War II, BGK Was Reactivated Under The Helm Of Renowned Economist Professor Edward Lipski. In 1948, BGK Was Supposed To Be An Investment Bank Due To Banking Reforms. Its Role During The Period 1948-1989 Was Mainly Limited To Pre-war Foreign Debt Repayments.
Former BGK Logo
In 1989, BGK Resumed Operations As A State-owned Bank And Therefore Primarily Acted As An Issuing Agent For US Treasury Bonds, The First Issuance In Decades. The Bank's Activities Focused On Preparing Sub-agent Transactions For The Sale And Redemption Of Bonds, Setting Accounting And Reporting Rules, And Organizing A Nationwide Sales Network.
In 1997, BGK Returned To Its Pre-war Headquarters In Aleje Jerozolimskie, Warsaw.
In Modern Poland, The Government Tasked The World Bank With Managing A Range Of Special Purpose Funds And Programs (including The National Road Fund, The National Housing Fund, The Thermal Modernization And Renovation Fund, And The Railway Fund).
BGK Is Involved In The Implementation Of The Country's Economic Goals. During The Economic Slowdown, It Finances Infrastructure Investments, Thus Supporting The Growth Of This Economic Sector. It Is An Important Link In Providing Funding And Support For Socially Important Areas Such As Housing Infrastructure, Energy Efficiency, And Utilities. It Supports Polish Exporters By Taking On Some Of The Risks Associated With The Trading Activities Of Polish Companies. In Cooperation With Other Financial Institution Groups, BGK Has Improved Access To Finance For Businesses, Resulting In Lower Unemployment And Stronger GDP Growth.
BGK Manages Several Special Purpose Funds And A Number Of Government Programs. Its Mission Is To Support Social And Economic Growth In Poland And The Public Finance Sector In Fulfilling Its Mandate.
