Bank War of 1433 (Premysloides Dynasty)

Bank War of 1433
Bank War of 1433 was economic crisis of banking sector and invesment banking in Roman Empire in 1433, which affected many sectors of Roman Empire economy and only militarization and investments in to military industry and armament prevented full-scale economic crisis and collapse.

Valerianus III reign continued in many enlighted and effective administrative and economic reforms of Arcadius II and Valerianus III allowed large economic liberalization. This, however, led to deregulation of banking sector and invesments in to risk sectors and activities.

In Bank War of 1433, critical problem was investments in colonialism, as bankers and investors expected soon-to-immediately return of their investments. Slow progress (in spite of Valerianus III radical colonial policy), bad logistics and many internal problems of colonies, prevented deep and full-scale economic activities within colonies. Contrary to earlier reports and expectations, only fifth of expected mines and plantations were opened and active in 1433 and economy of colonies growth from 1400 to 1433 by 0.5-0.7% per annum (while forecasts were about 1.5-2.5%). Profit rate of investment was about 6-10% (instead of expected 80-85%).

Templar Banking Alliance, Imperial Bank, Palaiologos Independent and Investment Banking Hall, Komnenian Financial Council and about thirty smaller banks invested in to colonies about 45 million Hp ($2.25 billion) with no profits. Banks started to threaten and clash each other. Imperial, Palaiologos and Komnenian Bank stood against Templar Banking Alliance, smaller banks and Khaldunian Banking Group.

From 1433 to 1435, "Bank War" based on machinations, intrigues, "false" economic activities and "false" companies and various other problems, costed Empire 75 million Hp ($3.75 billion). Crisis ended in 1435 by nationalization decree of Emperor Tiberius IV, who ordered temporary nationalization of Templars, Palaiologos, Komnenians and Khaldunians banks and imposed compulsory state control over these banks until normalization of economic activities and also gave order to arrest some of their representatives. Imperial Bank of Roman Empire took control over Khaldunian Banking Group and PIIBH was dissolved and sold to smaller banks.

Emperor also used financial reserves of "imperialized" banks to improve Imperial Military and imposed restricts and regulations on banking sector ("Banking Safety Act of 1434", "Banking Order and Law Act of 1441" and "Banking Regulation Commission Act of 1442"). These regulations were later improved and amended, but in most, remained very same and were able to prevent larger banking crisis.