Central Bank of the Democratic People's Republic of Korea
Encyclopedia
The Central Bank of the Democratic People's Republic of Korea is North Korea
's central bank
. Established on December 6, 1947, it issues the North Korean wŏn
. Ri Kwang-gon is its president since April 2009.
. However, the bank failed to accomplish its objectives, being unable to meet its costs of operation, and the 100 million wŏn capitalisation was ineffective. The North Korean Interim People's Committee did not look upon the bank favourably, and chose instead to work through the Farmers' Bank, which also existed at the time. By late 1946, banking functions were consolidated into two main institutions, the Central Bank and Farmer's Bank. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilition. The consilidation reflected a return to the original objectives of the People's Committee which wanted closer control over the economy
; any opposition from banking people to the changes within the system were removed from their posts. On December 6, 1947, a comprehensive program of currency reform was announced.
In 1959, the Central and Farmers' banks were merged to form the Central Bank of the Democratic's People's Republic of Korea. The Foreign Trade Bank was established to handle the Central Bank's international business.
The Central Bank has over 220 branches.
North Korea
The Democratic People’s Republic of Korea , , is a country in East Asia, occupying the northern half of the Korean Peninsula. Its capital and largest city is Pyongyang. The Korean Demilitarized Zone serves as the buffer zone between North Korea and South Korea...
's central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
. Established on December 6, 1947, it issues the North Korean wŏn
North Korean won
The won is the currency of North Korea . It is subdivided into 100 chon. The won is issued by the Central Bank of the Democratic People's Republic of Korea...
. Ri Kwang-gon is its president since April 2009.
History
On February 15, 1946, a central bank of North Korea was announced, which was to be under the control of the Soviet Union militarySoviet Armed Forces
The Soviet Armed Forces, also called the Armed Forces of the Union of Soviet Socialist Republics and Armed Forces of the Soviet Union refers to the armed forces of the Russian SFSR , and Soviet Union from their beginnings in the...
. However, the bank failed to accomplish its objectives, being unable to meet its costs of operation, and the 100 million wŏn capitalisation was ineffective. The North Korean Interim People's Committee did not look upon the bank favourably, and chose instead to work through the Farmers' Bank, which also existed at the time. By late 1946, banking functions were consolidated into two main institutions, the Central Bank and Farmer's Bank. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilition. The consilidation reflected a return to the original objectives of the People's Committee which wanted closer control over the economy
Economy of North Korea
The economy of North Korea is an industrialized and centrally planned economy.North Korea's economy remains one of the world's last centrally planned systems. The role of market allocation is sharply limited – mainly in the rural sector where some peasants sell produce from small private plots....
; any opposition from banking people to the changes within the system were removed from their posts. On December 6, 1947, a comprehensive program of currency reform was announced.
In 1959, the Central and Farmers' banks were merged to form the Central Bank of the Democratic's People's Republic of Korea. The Foreign Trade Bank was established to handle the Central Bank's international business.
The Central Bank has over 220 branches.