According to the provisions of the Treaty of St. Germain the newly created Republic of Austria had to overstamp the old paper money of the former Austro-Hungarian Empire still circulating in its territory, then had to replace the overstamped banknotes with new ones, and finally had to introduce an entirely new currency.

Later, still under the name Oesterreichisch-ungarische Bank, banknotes were printed using the German-language clichés on both sides – and still bearing the DEUTSCHÖSTERREICH inscription.

From 1920 on a new stamp appeared on banknotes: "Ausgegeben nach dem 4.

In 1922 a new series of Krone banknotes was introduced with a completely new design to fulfil the second step.

In 1923 the League of Nations Financial Committee, with support from the Bank of England under Montagu Norman, provided a loan to allow Austria to stabilize the krone against the U.S. dollar in exchange for austerity measures.