Zsigmond Kornfeld

Zsigmond Kornfeld
Born	Template:Birth date Golčův Jeníkov, Bohemia, Austrian Empire
Died	March 24, 1909(1909-03-24) (aged 56) Budapest, Hungary
Occupation(s)	Financier, economist
Known for	Director and president of the Hungarian General Credit Bank; member of the House of Magnates; baron

Zsigmond Kornfeld (27 March 1852 – 24 March 1909) was a Jewish Hungarian financier, economist, and baron originating from Bohemia.

Life

Born on 27 March 1852 in Golčův Jeníkov, Bohemia, then part of the Austrian Empire, Kornfeld was related to Aharon Kornfeld, who was known as the last prominent leader of a Bohemian Yeshiva.

At sixteen, he left formal education to begin his career at the Torsch Bank House in Vienna. After a short visit to Paris in 1872, he joined the Böhmischer Bankverein based in Prague. Four years later, he advanced to vice manager of the Vienna branch of Creditanstalt. In 1878, under the appointment of Albert Rothschild, Kornfeld became director of the Hungarian General Credit Bank located in Budapest, eventually rising to managing director in 1900 and president by 1905.

His connection with the Rothschild family was crucial; they saved the Hungarian General Credit Bank from bankruptcy and installed him as general manager. That same year, Kornfeld collaborated with the Rothschilds to secure a substantial loan of 150 million crowns for Hungary’s financially troubled government. He orchestrated advantageous conversions of Hungary's public debt in 1881, 1888, and 1892, positioning the Credit Bank as Hungary’s effective state bank. Under his guidance, the institution extended its reach into sectors such as railways, shipping, flour and sugar milling industries, contributed to developing the port of Fiume, and supported the expansion of Ganz Iron and Machinery Works.

In addition to debt restructuring efforts in 1888 and 1892, Kornfeld oversaw a monetary reform in 1894. Due to his bank’s industrial significance, he was appointed to the governing council of the Budapest Stock Exchange in 1891. Following a contentious episode involving dividend manipulation that triggered market panic in 1895, he temporarily left the country. Upon returning, he proposed transforming the Stock Exchange by replacing its German language operations with Magyarization efforts and was subsequently elected President on this reform agenda.

Kornfeld played a key role in reinforcing Hungary’s financial stability by implementing the gold standard, amassing gold reserves, and issuing government bonds. He co-established the Hungarian River and Ocean Navigation Company, which maintained control over Danube traffic until at least 1941. His prominence earned him a seat in the House of Magnates by Emperor Franz Joseph I in 1902 and elevation to baronial status in 1909. As an arts patron, he acquired Franklin Company, Hungary’s leading publishing firm known for its dedication to quality.

A devout Jew and vice-president of the Neolog movement, Kornfeld was deeply involved in philanthropy. Prior to the Russo-Japanese War, he arranged a major loan for Russia on behalf of Austria-Hungary but declined honors from Russia due to their anti-Jewish pogroms in 1903 and refused any payment for this service. In 1893, he became deputy president of Budapest’s Jewish community (kehillah) and actively supported Jewish educational and religious institutions.

In 1879, Kornfeld married Betty Frankfurter. Their children included Gyorgy (1880–1901), Maria (1881–1939), Moric (1882–1967), Pal (1884–1958), and Ferenic (1897–1945). Pal succeeded him as director of the Hungarian General Credit Bank; Moric led Danubias shipyard; Maria married Knight V. Domony, who directed the Royal River and Ocean Ship Company.

Kornfeld passed away on 24 March 1909 in Budapest. His funeral was attended by Prime Minister Sándor Wekerle and featured tributes from prominent figures in both religious and financial circles.