During World War I, in 1915, after defeating the Russians, the Central Powers occupied the whole territory of the former Congress Poland and appointed two Governors General: a German (Hans Hartwig von Beseler) in Warsaw and an Austro-Hungarian (Karl Kuk [de]) in Lublin.

The civil administration of the country was laid into the hands of imported German (mostly Prussian) and Austrian (mostly Polish) officials.

On December 9 the following year, after consultations with the Austrians, the chief of the German Administration, Wolfgang von Kries [de] proclaimed the foundation of a new bank, called the Polish Loan Bank (Polska Krajowa Kasa Pożyczkowa) and the creation of a new currency unit, the Polish marka, equivalent to the German mark.

The new Polish government decided to retain the marka as the national currency and to allow the Loan Bank to continue operating.

Early in 1924, financial reforms devised by politician and economist Władysław Grabski were instituted.