DEFINITION of 'WIR Bank'

A complementary currency system based in Switzerland that serves local businesses. The WIR Bank specifically works with small and medium-sized businesses, and allows these businesses to circulate their inventory through the WIR Bank's bookkeeping system in order to maintain sales volume. It started with only 16 members but has now grown to over 62,000.

BREAKING DOWN 'WIR Bank'

WIR Bank ("wir" means "we" in German) was created in response to the lack of available hard currency in the wake of the stock market crash of 1929. The bank allows inventory to continue to be exchanged even during times in which currency cannot be accessed. Businesses have to be members of the organization in order to participate.

RELATED TERMS
  1. Complementary Currency - CC

    A currency used in combination with other currencies, such as ...
  2. Currency

    Currency is a generally accepted form of money, including coins ...
  3. Sectoral Currency

    A medium of exchange that only has value in a limited marketplace. ...
  4. Inventory Financing

    A line of credit or short-term loan made to a company so it can ...
  5. Perpetual Inventory

    A method of accounting for inventory that records the sale or ...
  6. Average Inventory

    A calculation comparing the value or number of a particular good ...
Related Articles
  1. Trading

    An Introduction To Complementary Currencies

    There are alternatives to national currencies. Discover complementary currencies and how they work.
  2. Personal Finance

    Career Advice: Accounting Vs. Bookkeeping

    Learn the nuances that separate the similar careers of accounting and bookkeeping, and identify which is better for you based on your skills and career goals.
  3. Financial Advisor

    Bookkeeping 101 For Advisors

    Setting up an easy-to-manage system and dedicating time to keeping it current helps keep your business on the right track.
  4. Small Business

    How to Outsource Work: 2 Tips for Business Owners

    Small business owner can increase efficiency and profits by outsourcing routine functions such as bookkeeping and payroll.
  5. Insights

    The Currency Board: Understanding The Government's Bank

    Currency board, central bank - what's the difference? Find out more about this little-known monetary authority.
  6. Investing

    Understanding Periodic Vs. Perpetual Inventory

    An overview of the two primary inventory accounting systems.
  7. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  8. Personal Finance

    Banking Has Changed: What Does It Mean For Consumers?

    Banks have long been leading spenders on technological innovations. Learn the key changes in the banking industry and what institution is right for you.
  9. Investing

    Introduction To The Chinese Banking System

    As China steps into a greater role in the global economic system, their banking system continues to evolve.
  10. Investing

    Days Sales of Inventory

    Days Sales of Inventory, also called Days Inventory Outstanding, is a key financial measurement of a company's performance pertaining to inventory management. In simple terms, it tells how many ...
RELATED FAQS
  1. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
  2. Given a good bookkeeping system, would financial accounting be necessary?

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. ... Read Answer >>
  3. Why should investors care about the Days Sales of Inventory (DSI)?

    Learn about days sales of inventory and what it measures; understand why an investor would want to know a company's days ... Read Answer >>
  4. Why is Switzerland considered a tax haven?

    Learn how Switzerland is considered a tax haven, even though its government has signed agreements to disclose information ... Read Answer >>
  5. What is the formula for calculating inventory turnover?

    Learn about the inventory turnover ratio, how it is calculated and what this efficiency metric tells businesses about their ... Read Answer >>
  6. How do you analyze inventory on the balance sheet?

    Learn how to analyze inventory using financial statements and footnotes by doing ratio analysis and performing qualitative ... Read Answer >>
Trading Center