Bank of Spain

Bank of Spain (Spanish: Banco de España), is the national central bank of Spain. Established in Madrid in 1782 by Charles III, today the bank is a member of the European System of Central Banks.

Originally named the Banco Nacional de San Carlos, its first director was French banker François Cabarrus, known in Spain as Francisco Cabarrús.

Following a series of wars between 1793 and 1814, the bank was owed more than 300 million reales by the state, placing it in severe difficulties.

Treasury minister Luis López Ballesteros created a fund of 40 million reales in 1829 against which the bank could issue its own notes within Madrid. It did so after renaming itself Banco Español de San Fernando.

Functions

Defining and implementing the Eurosystem's monetary policy, with the principal aim of maintaining price stability across the euro area.

Conducting currency exchange operations consistent with the provisions of Article 109 of the Treaty on European Union, and holding and managing the States' official currency reserves.

Promoting the sound working of payment systems in the euro area.

Issuing legal tender banknotes.

The holding and management of currency and precious metal reserves not transferred to the European Central Bank.

The promotion of the sound working and stability of the financial system and, without prejudice to the functions of the ECB, of national payment systems.

The supervision of the solvency and compliance with specific rules of credit institutions, other entities and financial markets, for which it has been assigned supervisory responsibility, in accordance with the provisions in force.

The placement in circulation of coins and the performance, on behalf of the State, of all such other functions entrusted to it in this connection.

Preparation and publication of statistics relating to its functions, and assisting the ECB in the compilation of the necessary statistical information.

Provision of treasury services and financial agent for government debt.

Adviser to the government, preparing the appropriate reports and studies.

A more detailed explanation of these functions can be found at the Banco de España web site.