Deutsche Notenbank

Deutsche Notenbank was the central bank established in the Soviet occupation zone of Germany during the institutional reorganization that followed the Second World War. It emerged from the occupation authorities’ effort to create a monetary and banking institution distinct from the western occupation zones, where the Bank deutscher Länder had been created in March 1948. The bank’s immediate predecessor was the Deutsche Emissions- und Girobank, founded in Potsdam by the Soviet occupation authorities on 21 May 1948. That institution was renamed Deutsche Notenbank in July 1948 and subsequently moved its headquarters to East Berlin. The bank operated within the developing financial system of the Soviet occupation zone and, after 1949, the German Democratic Republic. Unlike the later model of a highly centralized central bank, the early East German banking system retained several institutions with defined roles. Provincial state banks, savings banks, cooperative banking institutions, the Soviet-linked Garantie- und Kreditbank, and the Berliner Stadtkontor operated alongside the Deutsche Notenbank. In this single-tier or state-directed system, the central bank was involved in credit allocation alongside other banks rather than functioning solely as an autonomous monetary authority. Its responsibilities included the central banking functions assigned to it by the East German state, including monetary administration and the operation of the banking framework. The institution was part of the broader consolidation of economic authority in the Soviet occupation zone, where financial institutions were increasingly brought under public control and aligned with the planning-oriented economic system. Its creation also reflected the political and monetary division of postwar Germany: the western occupation authorities had established their own central-bank structure, while the Soviet occupation authorities created a separate institution for the eastern zone. The bank was renamed Staatsbank der DDR in 1951, although the Deutsche Notenbank name remains associated with the institution’s formative period. The later Staatsbank der DDR became the principal state banking institution of East Germany. On 1 January 1968, the Deutsche Notenbank was formally replaced by the Staatsbank der DDR, marking the completion of the institutional transition. The bank is therefore best understood as an early East German central-bank institution rather than as a modern commercial banking brand. Its historical importance lies in its role in establishing a separate monetary and banking administration in the Soviet occupation zone and in preparing the institutional structure that later operated under the name Staatsbank der DDR.

The institutional origins of the Deutsche Notenbank lay in the postwar division of Germany and the dismantling of the prewar Reichsbank system. After Germany’s defeat in 1945, the Reichsbank was placed under joint Allied custodianship pending liquidation. The occupying powers then developed separate financial arrangements in their respective zones. In the western zones, an agreement among the United States, Britain, and France led to the establishment of the Bank deutscher Länder on 1 March 1948. The Soviet occupation authorities developed a different structure. In May 1947, Emissions- und Girobanken were created in each of the five provinces of the Soviet occupation zone: Brandenburg, Mecklenburg, Saxony, Saxony-Anhalt, and Thuringia. These institutions were owned and controlled by the provincial authorities. They formed part of an emerging regional banking system that also included provincial state banks and other specialized institutions. On 21 May 1948, the Soviet occupation authorities established the Deutsche Emissions- und Girobank in Potsdam. It was intended to provide a central monetary institution for the Soviet zone, parallel in broad institutional purpose to the western Bank deutscher Länder. In July of the same year, it was renamed Deutsche Notenbank. The institution subsequently moved to East Berlin, which became the political and administrative center of the Soviet zone and, after 1949, the German Democratic Republic. The Deutsche Notenbank operated within a Soviet-influenced single-tier banking model. It did not stand entirely apart from the rest of the banking system in the manner of a modern independent central bank. Instead, it held a role in credit allocation alongside other banks, including the state banks established in the provinces. The wider system included savings banks, a cooperative bank, the Soviet military-linked Garantie- und Kreditbank, and the Berliner Stadtkontor. This arrangement reflected the increasing direction of finance by public authorities and the integration of banking into the planned economic system. The bank’s institutional identity changed as the East German state consolidated its economic administration. It was renamed Staatsbank der DDR in 1951, although the Deutsche Notenbank designation continued to describe the earlier phase of the institution’s development. The succession of presidents during the 1950s and 1960s included Greta Kuckhoff, a former German resistance figure who led the bank from 1950 to 1958, followed by Martin Schmidt, Rolf Wetzel, Helmut Dietrich, and Margarete Wittkowski. On 1 January 1968, the Deutsche Notenbank was replaced by the Staatsbank der DDR. This transition completed the shift toward a more consolidated state banking institution. The Deutsche Notenbank therefore existed for roughly two decades as an important component of East Germany’s monetary and financial infrastructure. Its historical significance comes primarily from its establishment during the postwar division of Germany, its role in creating a separate eastern monetary administration, and its contribution to the institutional framework later represented by the Staatsbank der DDR.

• 1968

  Replaced by Staatsbank der DDR

  [1]Deutsche Notenbanken.wikipedia.org

  The Deutsche Notenbank ceased to operate as a separate institution on 1 January when it was replaced by the Staatsbank der DDR.

• 1951

  Renamed Staatsbank der DDR

  [1]Deutsche Notenbanken.wikipedia.org

  The institution was renamed Staatsbank der DDR as East Germany continued consolidating its state banking arrangements.

• 1948

  Deutsche Emissions- und Girobank established

  [1]Deutsche Notenbanken.wikipedia.org

  The Soviet occupation authorities founded the Deutsche Emissions- und Girobank in Potsdam on 21 May.

• 1948

  Institution renamed Deutsche Notenbank

  [1]Deutsche Notenbanken.wikipedia.org

  The Potsdam institution adopted the Deutsche Notenbank name in July and later moved to East Berlin.

• 1947

  Provincial Emissions- und Girobanken established

  [1]Deutsche Notenbanken.wikipedia.org

  Financial institutions were created in the five provinces of the Soviet occupation zone, providing part of the regional banking infrastructure from which the eastern monetary system developed.

State central bank and monetary authority of the Soviet occupation zone and early East Germany

• Central banking function · 1948

  Currency issuance

  The bank formed part of the monetary authority responsible for administering the currency and monetary framework of the Soviet occupation zone and early German Democratic Republic. The available historical material identifies this as a central banking function rather than a consumer-facing product.

• Central banking and financial administration · 1948

  Credit allocation

  Within East Germany’s state-directed, single-tier banking system, the Deutsche Notenbank participated in allocating credit alongside other banks. Its role was therefore connected to economic administration and institutional finance rather than ordinary retail banking.

• Central banking service · 1948

  Banking-system administration

  The institution served as a central component of the emerging eastern German banking system, operating alongside provincial state banks, savings banks, cooperative banking institutions, and other specialized financial bodies.

• 1968

  Replace the Deutsche Notenbank with Staatsbank der DDRStrategy

  Background

  East Germany continued to consolidate its banking institutions within a state-directed financial system.

  Action taken

  The Deutsche Notenbank was replaced by the Staatsbank der DDR on 1 January 1968.

  Aftermath

  The Deutsche Notenbank ceased to exist as a separate institution, while the Staatsbank der DDR continued as the principal successor institution.

  Source

• 1951

  Adopt the Staatsbank der DDR identityStrategy

  Background

  East Germany was consolidating its state institutions and financial administration after the establishment of the German Democratic Republic.

  Action taken

  The Deutsche Notenbank was renamed Staatsbank der DDR.

  Aftermath

  The new identity became associated with East Germany’s principal state banking institution and ultimately replaced the Deutsche Notenbank designation.

  Source

• 1948

  Create a separate eastern monetary institutionStrategy

  Background

  The western occupation zones had established the Bank deutscher Länder, while the Soviet occupation authorities required a separate monetary and banking structure for their zone.

  Action taken

  The authorities founded the Deutsche Emissions- und Girobank in Potsdam and renamed it Deutsche Notenbank several weeks later.

  Aftermath

  The institution became the central monetary body of the Soviet occupation zone and later moved its headquarters to East Berlin.

  Source

1. 1Deutsche Notenbanken.wikipedia.org