Banco de España: past, present and future
The Bank of Spain is the national central bank, in addition to the supervisor of the Spanish banking system together with the European Central Bank (ECB), that is, it performs an important task as an observer and guarantor of the proper functioning of banks, savings banks, credit cooperatives, finance companies. , etc., and its activity is regulated by law.
To find the origins of this institution we must go back to 1782, when King Carlos III founded the National Bank of San Carlos with the aim of providing financial support to the State, not only with regard to public debt and payments from the Crown in abroad, but to the provision of food and clothing for the armed forces and, most importantly, to the proportion of credit for commerce and industry, thus boosting commercial activity and combating usury.
Since then, one of the great challenges of the organization has been to adapt to the demands of the new times in economic and financial matters, such as the convergence towards a common monetary policy and an international financial system, and currently, the implementation mechanisms are in place to avoid a new economic crisis or to tighten vigilance on new credit activities and eminently digital operations.
In fact, the Bank of Spain announced in April that it would increase control over the new technological finance companies focused on granting credits and microcredits in order to increase security, data protection and consumer protection against possible bad practices of certain financial institutions, a decision that from CréditoSí , where we fight for transparency and honesty, we endorse.
What are the functions of the Bank of Spain?
Its functions as a national central bank range, among others, from the possession and management of foreign exchange reserves and precious metals not transferred to the ECB to the promotion of the proper functioning and stability of the financial system as well as of national payment systems, for example , with operations of urgent provision of liquidity to the entities.
The supervision of solvency and compliance with the specific regulations of credit institutions, of other entities intended to provide microcredits or mini-credits and of financial markets is another of its commitments, as well as the putting into circulation of the metallic currency , the provision of services as treasury and financial agent of the public debt and advising the Government.
As a participant in the definition and execution of the common monetary policy as a member of the European System of Central Banks (ESCB), in addition to supervising the solvency of the financial system and enforcing the legal regulations in this regard, the Bank of Spain must comply with, since January 1, 1999, with the following functions: to maintain price stability in the euro zone as a whole, to carry out currency exchange operations that are consistent, to promote the proper functioning of payment systems in the euro zone euro and issue legal tender banknotes.
The Bank of Spain also cooperates with other international institutions and organizations in various activities, such as the Center for Latin American Monetary Studies (CEMLA), the Association of Banking Supervisors of the Americas (ASBA), the International Monetary Fund (IMF) or the World Bank.
The main headquarters of the Bank of Spain has been located, since 1891, at number 48 in Madrid's Roane Alcalá.