On 30 November 1656 Karl X Gustav was in the throes of the war with Poland. From his army camp in Marienburg, East Prussia (now Malbork in Poland) close to the Baltic coast, he issued privileges for an exchange and loan bank. The bank was given the name Stockholms Banco and thus became Sweden’s first bank.
Stockholms Banco was founded as a private company with strong regulation by the state and it was owned by Johan Palmstruch. The Bank issued banknotes, but when the general public lost confidence in the banknotes the bank folded in 1664.
Time axis
| 1624 |
Sweden changes to a copper standard.
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| 1644 |
The first copper plate money is minted.
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| 1654 |
Queen Kristina abdicates and is succeeded by Karl X Gustav. Chancellor Oxenstierna dies.
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| 1656 |
Karl X Gustav grants Johan Palmstruch a charter for an exchange bank and a loan bank, established as Stockholms Banco.
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| 1660 |
Karl X Gustav dies. Regency during Karl XI's minority. Plate money depreciates. A run on the Bank.
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1661
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Stockholms Banco issues the first credit notes.
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1664
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Liquidation of Stockholms Banco begins.
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1668
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The Svea Court of Appeal convicts Palmstruch of mismanagement.
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