Bank of Issue in Poland

This system, intended to be temporary from the beginning, was to be replaced by a new German-controlled currency and central banks in occupied territories.

[2] In the meantime, various Polish banks and credit institutions were temporarily closed, while some of their assets were nationalized by the German government.

[2] On 15 December 1940 Hans Frank, the governor of the General Government, passed a decree creating the Bank Emisyjny, which began operating in April.

[2] Officially, however, the Bank Polski still existed, as the Germans unsuccessfully tried to use it on the international scene to regain the assets evacuated and under the control of the Polish government in exile.

[1] The Bank, as well as other financial institutions in occupied Poland, were tasked with gathering as much capital as possible, to be invested in the German economy.

[4] It printed new currency (unofficially named after the Bank headquarters "złoty krakowski"[4] - Złoty of Kraków - or after director Młynarski "the młynarki") with no backing[1][4] which resulted in increasing inflation (market prices rose by three to six times and the exchange rate with the American dollar doubled over the war period).