The bank was established in 1900 by
Živnostenská Banka on the advice of Ljubljana's Czech-friendly mayor
Ivan Hribar, in line with Živnostenská's strategy of expansion into the Slavic-speaking parts of the
Habsburg monarchy. By the founding assembly held on on the bank's original premises on Špitalska street, Hribar was elected president and Josip Spitalsky, then head of Živnostenská's branch in Vienna, became vice president. Živnostenská Banka held half of the equity capital. The bank soon opened its first branch in
Split. LKB survived the turmoil of
World War I and remained controlled by Živnostenská Banka. By 1924, it had foreign branches in
Trieste and
Gorizia, and domestic ones in
Brežice,
Celje,
Črnomelj,
Kranj,
Maribor,
Metković,
Novi Sad,
Ptuj,
Sarajevo, and
Split.) and the
Cooperative Business Bank (). In 1927, it merged with Trgovska banka, thus forming the largest bank in Slovenia and the fourth-largest in all of Yugoslavia. Operations that were not terminated were consolidated into the
National Bank of Yugoslavia and
State Investment Bank, itself merged into the National Bank in 1952. ==Head office building==