ABSTRACT
Very frequent changes in Yugoslavia's banking and credit system call for an explanation, particularly now that major new changes are again under way. An insufficiently informed or superficial observer, or one who makes no effort to look for the deep social, economic, and political reasons for these changes and the effects they are intended to achieve, might be left with an impression of reorganization for reorganization's sake or even of a reorganizational mania. Various factors were responsible for the gradual nature of the change. A very complex process has been found to be involved in trying to realize the desire and need of socialist society to make use of an achievement of the previous society like modern banking. It can now be said that the monetary system, the system of credit and deposit operations of banks, has not been just an indifferent mediator but also one of the major generators of unfavorable developments.
