The new bank on the Danish West Indian Islands was established as a limited liability banking company by Danmarks Nationalbank in 1904. It was formed on the basis of negotiations between Danmarks Nationalbank, Handelsbanken, Landmandsbanken and Privatbanken i Kjøbenhavn. One condition for its establishment was that the West Indian coin system become a permanent scheme. The islands were relinquished to the USA in 1917, but the Royal Danish banking privileges remained in force until they expired in 1934. Then the Danish-West Indian Nationalbank was discontinued and the US dollar introduced on the islands.