In response to the economic decline, the Finance Minister at the time, Alois Rašín, implemented strong deflationary policies in an attempt to prevent further hyperinflation.
While Rašín's policies most likely averted hyperinflation as extreme as happened in Austria and Germany, public opinion was hostile to the Ministry of Finance.
Minister of Finance Karel Engliš attempted to end the deflationary policy by devaluating the koruna, while maintaining the gold standard.
Despite political turmoil and difficulties with the central bank, Czechoslovakia began a slow rebound in 1934.
[2] In March 1939, Adolf Hitler fostered the secession of Slovakia and took over the Protectorate of Bohemia and Moravia, and the National Bank was consequently divided into two separate entities respectively in Bratislava and Prague.
More than 45 metric tons of the National Bank's gold reserves was seized by Deutsche Reichsbank.
The State Bank granted credit to the individuals that needed capital to meet their business's economic expectations.
In some cases, however, it commissioned new buildings from Czechoslovak architects, for example in Slovakia from Emil Belluš (in Bratislava), Vladimír Fischer (in Ružomberok), and Ladislav Skřivánek [cs] (in Banská Bystrica).