Bank of Spain

The Bank of Spain is the central bank of Spain. Founded in Madrid in 1782 by King Carlos III, today the bank is a member of the European System of Central Banks and is also Spain's competent national authority for banking supervision within the Single Supervisory Mechanism. Its activity is regulated by the Bank of Spain Autonomy Law of 1994.

Its main headquarters, built between 1884 and 1891, is located at the confluence of Calle Alcalá with Paseo del Prado, overlooking Plaza de Cibeles. In the capital, it also has another office at 522 Calle Alcalá and fifteen branches throughout the country.

History

The Banco de España has a long historical tradition, which has its roots in the 18th century.

Bank of San Carlos

In 1782, King Carlos III created a joint-stock company in Madrid, whose ownership corresponded to institutions and individuals. The main enlightened rulers of the time, such as the first Secretary of State, the Count of Floridablanca, the Secretary of State for Finance, Miguel de Múzquiz y Goyeneche, and the prosecutor of the Council of Castilla, Pedro Rodríguez de Campomanes, supported the creation of this banking institute. Although it was not a public bank, it enjoyed the protection of the Crown, and maintained close financial ties with the State. It was called Banco Nacional de San Carlos.

The main objective of the Banco Nacional de San Carlos was the reduction or discount of real vouchers to cash. The real vouchers were a type of public debt, whose titles, in addition to providing a certain return to their holder, had the capacity to release large payments, which is why they are considered the first manifestation of paper money existing in Spain. The creator of the royal vouchers was Francisco Cabarrús, an enlightened merchant of French origin, who would also be the founder of the Banco Nacional de San Carlos and an ex officio member of its management. In 1789 he would receive the title of Count of Cabarrús from Carlos IV. The Banco Nacional de San Carlos also had, among other tasks, discounting bills of exchange and commercial paper, guaranteed loans, and financing State activities.

The year after its institution, it began issuing the first banknotes called «cédulas». These bonds guaranteed an immediate cash refund, a refund that would be made by the issuing bank itself; they were exchanged to the bearer without producing any interest, which differentiated them from real vouchers. This card or bill character lasted until the Spanish Civil War, which is why all the bills bore the legend "The Bank of Spain will pay the bearer...". The phrase survived until 1976, but had lost legal value since the November 1939 law.

However, the banknotes in question, the cédulas, did not have any success, due to the abundance of circulating silver coin in Spain at the end of the century XVIII and beginning of the XIX century and the very existence of royal vouchers. In 1790, Francisco Cabarrús and the remaining directors were relieved of their positions, due to the appearance of losses caused in certain powers of the Banco de San Carlos, and on suspicion of irregularities. Cabarrús was prosecuted and preventively imprisoned. After six years, the case was dismissed and Cabarrús was reinstated in his position, although surrounded by a different management team and beyond his control.

Between the years 1793 and 1814, Spain was involved in a series of wars that dragged the Bank down and placed it in serious difficulties, caused mainly by the considerable debt that the Treasury had contracted with the Bank throughout those twenty years of conflict. Finally, in the year 1829 a solution was found for said debt, thanks to King Ferdinand VII's Minister of Finance, Luis López Ballesteros, who, in addition to taking certain innovative financial measures, conceived the idea of endowing the Banco de San Carlos with a fund of 40 million reais.

With this help, the shareholders decided to found a new institution with the name of Banco Español de San Fernando (because Fernando VII was King). This new bank obtained the power to issue banknotes under a monopoly regime in Madrid. Throughout fifteen years he maintained a continuous banking activity in the area of the capital of Spain, with special dedication to the financial needs of the treasury, in a few years in which the nascent liberal regime was consolidating, and especially during the first Carlist war.

In 1844, the Government authorized the opening of a new issuing bank in Madrid, the Banco de Isabel II, whose main inspiration was the financier José Salamanca y Mayol. In the same year the creation of an issuing bank in Barcelona was approved and in 1846 that of another similar one in Cádiz. Each of these banks had the power to issue their own banknotes and put them into circulation in their respective local areas, in addition to developing their other credit activities, except in the case of Madrid, where the two existing entities competed.

After three years, and in the midst of the international financial crisis of 1847, the Government decided to solve the difficulties that the two issuers in Madrid were going through, mainly Banco de Isabel II, by merging the two. The entity resulting from said process retained the name of Banco Español de San Fernando. The consequences of the crisis were lasting, and after various legal changes, in 1849 the former Minister of Finance Ramón Santillán was appointed governor of the Spanish Bank of San Fernando. Santillán carried out, between 1851 and 1856, an exemplary work of financial consolidation within the entity.

Birth of the Bank of Spain

After the Revolution of 1854, the banking legislation of 1856, clearly liberal in inspiration, allowed, among other modifications, that the Banco de San Fernando be renamed Banco de España, whose first governor continued to be that of Banco de San Fernando, Ramon Santillan. Despite being called the Bank of Spain, this institution only operated then in Madrid, Valencia and Alicante, cities where it opened branches in 1858. Nineteen other Spanish towns, including the main industrial and commercial centers, such as Barcelona, Bilbao, Malaga, Seville, Zaragoza, Valladolid or Santander, had their own banks of issue and discounts within the period 1856-1874.

On March 19, 1874, the pressing and forced financial needs caused by the third Carlist war and by the Ten Years' War, simultaneous to the previous one, forced the then Minister of Finance in the Government of the First Republic, José Echegaray, decree the merger of all local issuing banks with the Bank of Spain. However, the latter were left the option of continuing with their commercial and credit activity, although without the power to issue banknotes, whose monopoly throughout the nation would correspond, from now on, to the Bank of Spain. Only the banks of Barcelona, Bilbao, Reus, Santander and Tarragona accepted this possibility. In exchange for the issuing privilege, the Bank of Spain granted a credit of 150 million pesetas.

Banco de España, brokers making operations for the loan. Photograph by Christian Franzen published in 1902.

Thereafter, the Bank of Spain established a dense network of branches throughout the nation, beginning with the former branches of absorbed issuing banks. By the end of the 19th century, there were more than fifty branches of the bank in all the provincial capitals and cities of commercial importance. It is necessary to underline that, at this time, the Bank of Spain – which continued to be a privately owned joint-stock company, although the governor and deputy governors were respectively appointed and approved by the Government – simultaneously issued banknotes and credit to the treasury public with activities of loans and discounts with individuals through its offices in different Spanish cities.

Banking Regulation Law

With the Banking Regulation Law of 1921, the Bank of Spain established itself as a bank of banks, or central bank, developing – in agreement with the Government – new monetary policy instruments. It continued to be a public limited company with a capital now of 177 million pesetas (354,000 registered shares of 500 pesetas each), although the Government reserved the appointment of a governor and two deputy governors. Its Council was made up of 21 members (15 elected by the shareholders, one by the banks/bankers, another by the Superior Council of Chambers of Commerce, Industry and Navigation, another by the agricultural confederations and the remaining 3 by the Government).

Civil War

A few hours before the start of the Civil War in July 1936, Pedro Pan Gómez, first deputy governor of the Bank of Spain during the entire republican period, fled to Burgos together with the politician Antonio Goicoechea, with the aim of founding a new central bank of support for the insurgent zone. Indeed, Pan Gómez, as soon as the Council meeting on July 15, 1936, left for Burgos with his family with the intention of taking charge of the new insurgent central bank. He was automatically dismissed from his position 15 days later, on August 4, 1936, and replaced by Julio Carabias Salcedo. Later, on August 14, 1936, all the councilors who had joined the uprising were suspended from their duties.

The Madrid-based bank was led by Luis Nicolau d'Olwer, appointed in February 1936 after the victory of the Popular Front. A few hours after the war began, on July 19, 1936, the Bank of Spain ordered a limit to 2,000 pesetas the maximum amount that bank and savings bank customers could withdraw from their checking accounts and bank deposits during a period of 48 hours. Corralito forced to avoid absolute chaos. Nicolau, following orders from the Republican Government, with the bank's reserves (2,202 million pesetas-gold) paid France (616 million) and Russia (1,586 million) in cash million) in order to obtain weapons for the Republican side. Until November 6, 1936, the Councils of the Bank of Spain were held in Madrid. Since November 9 they did it in Valencia. Approximately 65% of the bank staff had remained on the Republican side, compared to 35% on the Francoist side, however, the budgets of the Second Republic for 1937, 1938 and 1939 did not take this particularity into account.

The new entity of the revolted Spain financed the expenses in arms and military personnel, as well as the officials of the related provinces mainly through international credits (although we can cite the ~700 million gold-dollars that were paid to Germany or the £5,500-gold that was paid to Italy). The oil came from the United States for the benefit of the rebels, while Russia and Mexico sent the Republican side. Finally, in September 1936, the rebels created their own Bank of Spain with headquarters in Burgos.

From August to December 1938, Julio Carabias, first deputy governor, assumed the functions of governor at the Banco de España in the republican zone.

Burgos Headquarters

José Larraz López, head of the Research Service of the Bank of Spain in Burgos, warned of the importance of lowering the price of republican money; In turn, the deputy governor of the Bank of Spain in Burgos, Pedro Pan Gómez, had secretly warned of the possible military use of the mass of Republican gold currency, which would end up causing the collapse of the Republican currency and making trade relations impossible. of the republican government. For this, Franco ordered the creation of a fund of Republican paper money captured from the enemy, which would be managed by a secret committee, with monthly reports to the Francoist Finance Minister. The chairman of the committee was Colonel José Ungría, head of the Military Police and Information Service. Other members of the committee were Ángel Gutiérrez Martínez, a director of the Bank of Spain, and Ramón Martínez Artero, a diplomat. The money from the fund was used to finance the intelligence networks on French soil and the fifth column in the Republican rear; In addition, modern communication devices and valuable currencies were obtained. The exchange of the republican currency fluctuated and its opaque origin gave it a value 30% lower than that of the real currency. According to Sánchez Asiain's studies, in mid-1938, 26.30 French francs could be obtained for one hundred pesetas, but in February 1939 they could only be exchanged for 2.10 francs.

Banking Commissioner

On March 15, 1938, the Minister of Finance of the Franco zone, Mr. Amado, issued a decree creating the Banking Commission. Before the press, he explained that the new position was going to replace the previous positions of governors of the Bank of Spain, Banco Exterior de España, Banco Hipotecario de España and the Banco de Crédito Local. A day later, on March 16, 1938 José Larraz López, Ángel Gutiérrez Martínez and Eduardo Aunós were appointed "Directors of the Bank of Spain, on behalf of the State". The press release added that on that date the deputy governor had been dismissed, "retiring him", Pedro Pan, "and appointed to replace Mr. Ramón Artigas Gracia". The so-called Burgos branch The Bank of Spain did not have a governor until April 1938, the date on which Antonio Goicoechea was appointed. Until then, these functions were exercised by: Pedro Pan, as first deputy governor, and Ramón Artigas Gracia, as second deputy governor.

Franco's dictatorship

After the Spanish civil war, the Bank of Spain lost powers and autonomy in favor of the Ministry of Finance. Indeed, in 1939 the Spanish Institute of Foreign Currency was created, dependent on the Ministry of Finance, which was exclusively in charge of defining the official exchange rate of the peseta and the exchange of foreign currency for Spanish., and vice versa, within the national territory. In 1946, a new Banking Law was approved, by which monetary policy became the responsibility of the Government, which would correspond, among other functions, to set interest rates and discounts, both in asset and liability operations, for all Spanish banks. Likewise, the number of directors of the Bank of Spain appointed by the State increased, which went from three —as had been in force since 1931— to five. Dividends were also cut, in favor of the State. That same year, the Bank of Spain lost the power to choose the manufacturers of banknotes, which would be taken over, from then on, by the National Currency and Stamp Factory - Real Casa de la Moneda.

In 1954 the entity played a prominent role in the negotiations that led to the acquisition of the Rio Tinto mines from the British Rio Tinto Company Limited, also forming part of the consortium that would end up constituting the Compañía Española de Minas de Río Tinto (CEMRT) for the exploitation of the deposits. The Bank of Spain continued its journey still as a private entity in a context of autarchic policy. However, the appointment in 1957 of Juan Sardá as director of the Research Service of the Bank of Spain marked a turning point in his performance. His international prestige, as well as the support of the great powers, led to the entry of Spain into the OECE, the IMF and the World Bank in 1959. Internally, Sardá actively collaborated in drafting the 1959 Stabilization Plan and in drawing up the monetary policy that would serve as the basis for the period of greatest growth and transformation of the economy. Spanish.

In 1962, with a new Law of Bases for the Regulation of Credit and Banking, more in line in its content with the liberalization experienced by the Spanish economy, as a result of the Stabilization Plan of 1959, some powers were returned to the Banco de Spain. Among these changes was the nationalization of the bank and the cessation of its private banking activity. In 1965, coinciding with the appointment of Mariano Navarro Rubio at the head of the Bank of Spain, Ángel Madroñera was appointed director of the Studies Service. From this period, the creation of the Body of Graduates via competitive examinations stands out, which meant the arrival at the Service of a new generation of excellent professionals, most of them trained in foreign centers.

From 1971 to 1988, Luis Ángel Rojo directed the Research Service of the Bank of Spain. Despite the unfavorable context of Franco's death and the political transition, the economic crisis of 1973 and the continuous interference from the Ministry of Finance, the Studies Service was consolidated as a mature institution adapted to its time. Throughout this stage, the institutional transformation of the Bank of Spain was completed, which became an autonomous central bank, primarily responsible for monetary policy, macroeconomic stability and the country's financial orthodoxy.

1978 Constitution

The approval of the 1978 Constitution gave way in 1980 to the Law on Governing Bodies of the Bank of Spain, a key law in the history of the bank. The election of Luis Ángel Rojo to occupy the position of sub-governor in July 1988 left the head of the Research Service vacant. After Constantino Lluch's brief hiatus, from June 1988 to October 1989, José Pérez Fernández was appointed, who remained in charge of the institution until 1992, the year in which José Luis Malo de Molina was appointed. During these decades, Considerable challenges have been accomplished: Spain's accession to the EEC in 1985, the entry of the peseta into the European Monetary System in 1989, the new Bank of Spain Autonomy Law of 1994, following the dictates of the Maastricht Treaty, the integration of the BdE into the European System of Central Banks in 1998, and the commitment to the Economic and Monetary Union in 1999. The incorporation of Spain into the European integration process meant for Spanish monetary policy the obligation to achieve a nominal convergence with the countries European countries with greater macroeconomic stability, which meant putting into practice an active, continuous and predictable monetary policy, essentially based on price maintenance stable. This journey has given the bank great governmental freedom and flexibility, especially with regard to monetary policy.

End of the peseta: arrival of the euro

In 2002 the EU began a new economic stage, replacing the old national currencies with the euro in 11 of the 28 member states of the Union. The peseta, born with the Revolution of 1868, gave way to the euro, with a value of 166,386 pesetas (1000 pesetas 6 euros was the approximate change). Six years later, the international crisis had a very significant impact on the Spanish economy. The virtual disappearance of some of the main wholesale capital markets from 2007 to 2008, such as the interbank or securitization markets, made it difficult for Spanish credit institutions to normally finance, which at that time had large external financing needs.

The role of the Bank of Spain in the detection and treatment of financial crises, the main consequence of which has been a public money bill of more than 40 billion euros, has been the subject of controversy and cross accusations between the different political parties since that the government of Mariano Rajoy was formed at the end of December 2011.

There is evidence that on crucial dates of the crisis, specifically in 2008, the supervision of the Bank of Spain modified the accounting standards required of financial institutions. These regulatory changes had the consequence of alleviating and deferring the point in bank balance sheets of the excessive growth of delinquency caused by the crisis, especially with regard to the refinancing of loans. In other words, thanks to the instructions given by the Bank of Spain at the height of the crisis, credit institutions would have been able to hide the destructive effect of late payment and defer the necessary corrections.

The strategy adopted by the Bank of Spain to deal with the crisis sought to avoid the chain of bankruptcies of a good number of financial institutions. This strategy pursued, using private and public resources and legal and institutional changes, to avoid contamination of the entire Spanish banking sector, making possible its subsequent restructuring, eliminating the risk of a crisis of confidence, both in the markets and among the depositors. Private solutions prevailed by cleaning up the balance sheets of the entities with their own resources, through corporate operations, resorting to the sector itself through the FGD and, only as a last instance, through the injection of public funds, including the European aid associated with the financial assistance program signed in 2012. It should not be forgotten that between 2008 and 2013 Spanish credit institutions carried out write-offs for a total of close to 270 billion euros, most of which was assumed by the shareholders of these entities. It should be noted that customer deposits did not suffer any loss.

Legal status

In accordance with the provisions of the Bank of Spain Autonomy Law, said institution is a public law entity with its own legal personality and full public and private capacity, which will act autonomously with respect to the General State Administration in the performance of their functions, in accordance with the provisions of the legal system.

Except for those cases in which it acts in the exercise of the administrative powers conferred on it by law, the Bank of Spain is subject to the private legal system.

In addition, the Autonomy Law establishes that the Banco de España is an integral part of the European System of Central Banks (ESCB) and, as such, is subject to the provisions of the European Community Treaty and the ESCB Statutes. Thus, in the exercise of the functions derived from its status as an integral part of the ESCB, the Banco de España complies with the guidelines and instructions of the European Central Bank.

In accordance with the provisions of article 7 of the aforementioned Autonomy Law, in the exercise of the functions in which the Bank of Spain participates as a member of the ESCB, neither the Government nor any other national or community body may give instructions to the Banco de España nor can the latter collect or accept them. This article includes the content of article 108 of the Constitutive Treaty of the European Community.

Governing Bodies

The governing bodies of the Bank of Spain are:

The Governor

Placa in the house in Lerma de Ramón Santillán González, first governor of the Banco de España.

The Governor of the Bank of Spain will be appointed by the King on the proposal of the President of the Government of Spain, from among those who are Spanish and have recognized competence in monetary or banking matters. Prior to the appointment of the governor, the Minister of Economy and Competitiveness will appear in the terms provided in the Regulations of the Congress of Deputies before the competent commission, to report on the proposed candidate. His mandate lasts for six years, without possible renewal.

Corresponds to the Governor of the Bank of Spain:

• Direct the bank and chair the Governing Council and the Executive Committee.
• To carry out the legal representation of the bank for all purposes and, in particular, in the courts of law, as well as to authorize contracts and documents and perform the other activities that are necessary for the performance of the functions entrusted to the Banco de España.
• To represent the Banco de España in the international institutions and agencies in which its participation is planned.
• Be a member of the Governing Council and the General Council of the European Central Bank.

The Deputy Governor

The deputy governor will be appointed by the Government, at the proposal of the governor, and must meet the same conditions. The sub-governor will replace the governor in cases of vacancy, absence or illness, regarding the exercise of his powers of superior management and representation of the bank. He will also have the powers established in the Internal Regulations of the Bank of Spain, as well as those delegated to him by the Governor. His mandate has a maximum duration of six years, without possible renewal.

The condition of deputy governor implies being an ex officio director of the National Securities Market Commission, president of the management commission of the Deposit Guarantee Fund, vice president of the governing commission of the Fund for Orderly Bank Restructuring and, lastly, a member of the supervisory board of the Single Supervisory Mechanism of the European Central Bank.

The Executive Committee

The Executive Committee will be made up of:

• The governor, who will act as president.
• The sub-governor.
• Two counselors.

The general directors of the Bank of Spain will attend its sessions, with voice but no vote. The secretary general of the Bank of Spain will be the secretary, with voice and no vote.

Government Council

The six directors will be appointed by the Government, at the proposal of the Minister of Economy and Competitiveness, after hearing the Governor of the Bank of Spain. They must be Spanish, with recognized competence in the field of economics or law. The two councilors who are members of the Executive Commission will be appointed by the Governing Council, at the proposal of the governor, from among its non-existing members. The Governing Council is made up of:

• The governor.
• The sub-governor.
• Six counselors.
• The Secretary General of the Treasure and International Financing.
• The vice president of the National Securities Market Commission.

The general directors of the bank attend the Board, with voice but without vote. A representative of the bank's staff will also attend, chosen in the manner established by the bank's internal regulations, with voice and no vote.

The Minister of Economy and Competitiveness or the Secretary of State for the Economy may attend, with voice but without vote, Council meetings when they deem it necessary in view of the special importance of the matters to be considered. They may also submit a motion for deliberation by the Governing Council.

The Governing Council will have as secretary, with voice but no vote, the Secretary General of the Bank of Spain.

Functions

Since January 1, 1999, the Banco de España has participated in the development of the following basic functions attributed to the European System of Central Banks:

• Defining and executing the monetary policy of the euro area, in order to maintain the stability of prices in the euro area as a whole.
• Conduct foreign exchange transactions that are consistent with the provisions of article 111 of the European Union Treaty.
• Provide and manage official State foreign exchange reserves.
• Promote the good functioning of payment systems in the euro area.
• Issue the legal course tickets according to decisions made by the Governing Council of the European Central Bank (ECB)
• Other functions arising from their status as an integral part of the European Central Bank System.

The Bank of Spain will also perform the following functions:

• Poseer and manage reserves of precious currencies and metals not transferred to the European Central Bank.
• Promote the good functioning and stability of the financial system and, without prejudice to the functions of the European Central Bank, of national payment systems.
• Supervising the solvency and compliance with the specific regulations of credit entities, other entities and financial markets whose supervision has been attributed to it.
• To circulate the metallic currency and perform, on the State ' s account, the other functions entrusted to it.
• Provide the Treasury and Financial Agent of Public Debt.
• To advise the Government, as well as to carry out relevant reports and studies.
• Develop and publish economic indicators and statistics related to their functions and assist the ECB in collecting the statistical information necessary for the performance of the functions of the European Central Bank System.
• To exercise the other competences assigned by law.

Bills and coins

Last issue of pesetas. 500.

On January 1, 2002, the euro was put into circulation and replaced national banknotes and coins. The Governing Council of the European Central Bank (ECB) decides the volume of euro banknotes that are issued each year and approves the total value of the coins that will be issued by each country. The circulation of banknotes and coins is the responsibility of the national central banks.

The European Community Treaty grants the European Central Bank (ECB), since January 1, 1999, the exclusive right to approve the volume of issuance of metallic currency that corresponds to the Member States. In Spain, the manufacture of euro coins is carried out by the Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda (FNMT) and it is the Bank of Spain that, on behalf of the Spanish State, puts into circulation and withdraws from it the euro coins. The number of euro coins with the Spanish national side manufactured for the launch of the euro was 7,055 million.

The exchange of pesetas for euros at the Bank of Spain could be done until June 30, 2021 and is free of charge. As a general rule, peseta banknotes issued after 1939 are exchangeable. Those issued between 1936 and 1939 must be examined by experts from the Bank of Spain to determine their exchange value. As for the coins, only those corresponding to the last minting, which were put into circulation in 1997, are exchangeable, as well as all the 2000 pesetas commemorative coins. The exchange of those coins in pesetas that have suffered an alteration derived from an industrial or mechanical process will be denied.

The Risk Information Center

The Risk Information Center (CIR) is a public service that manages a database containing practically all the loans, credits, guarantees, and risks in general that financial institutions have with their customers. For the proper evaluation of the employment, income, patrimonial and financial situation of the client, the financial entities will consult the credit history of the client, being able to go to this division of the Bank of Spain. Entities have to declare to the Risk Information Center (CIR) on a monthly basis practically all (there are some exceptions) of their credit risks and the holders to whom they correspond, including the most significant data, characteristics and circumstances.

Supervision of the solvency of entities

The Bank of Spain supervises the solvency and compliance with specific regulations of banks, savings banks, credit cooperatives, branches of foreign credit institutions, financial credit establishments, money issuing entities electronic, mutual guarantee and reguarantee companies, currency exchange establishments and appraisal companies. In the case of branches of entities from European Union (EU) countries, their powers are limited to controlling the branch liquidity and compliance with general interest regulations.

The supervision model that is applied is made up of four main elements:

• Effective and prudent regulation, which includes both rules of access to activity and the exercise of activity.
• A system of continuous monitoring of entities, consisting of the receipt of periodic information, distance analysis and on-site inspections.
• A set of corrective measures (reforming requirements and recommendations, approval of the sanitation, intervention and replacement of administrators).
• A disciplinary and sanctioning regime that can affect both entities and their administrators.

In carrying out its function, the Banco de España collaborates closely with the other national supervisory authorities and the regional authorities with powers in the area of financial supervision. It also maintains close collaboration with foreign supervisory authorities and actively participates in all national and international supervisory forums.

As part of its supervisory functions, the Bank of Spain intervened on March 10, 2015 in Banco Madrid.

Services

The Bank of Spain in Madrid operates with credit institutions and offers the following services to the public:

• Perpetual exchange operations per euro.
• Collection of counterfeit banknotes and coins.
• Swallowed banknotes.
• Public debt subscription.
• Request for information from the Risk Information Center (CIR).
• Submission, to the Department of Market Conduct and Claims, of complaints and consultations regarding banking services provided by credit entities.

Some services are located at C/ Alcalá, 522, 28027 Madrid.

Offices

Headquarters

Chafan clock to Cibeles Square.

Shield of the Second Republic on the northern facade.

The Bank of Spain had various locations in Madrid throughout the XIX century. The current Banco de España building was built with the aim of providing the National Bank with a headquarters more in keeping with the importance of its functions, such as the single issue of coins and banknotes for the entire Spanish territory.

The current building is located in Plaza de Cibeles, where the streets of Alcalá and Paseo del Prado meet. At the time of its construction, the building was located on a large plot of land made up of the old plots of the palace of the Marqués de Alcañices, Duke of Sesto, and some adjoining land, including that corresponding to the chapel of San Fermín de los Navarros., to the garden of the School of Civil, Canal and Port Engineers and to the garden of a house owned by the Marqués de Larios. Next to the Cibeles fountain, the Bank of Spain is surrounded by the Post Office building, the Casa de América and the Círculo de Bellas Artes.

Everything related to this new building began in 1882. In this year it was agreed to call a public contest for the election of the architectural project that best suits the new needs of the Bank and whose bases are drawn up by the architects of the institution, Eduardo de Adaro, Severiano Sainz de la Lastra and José María Aguilar y Vela. Only four projects are presented and none of them is to the full satisfaction of the works commission, which is why the Bank's architects are commissioned to, after studying the buildings of other European banks, draw up the final project, which is approved at the end of 1883, after many incidents. Among others, Aníbal Álvarez Bouquel, Alejandro Herrero, Amador de los Ríos, or Bernardo Asins, who made the iron doors, also collaborated in the project. The cost, including plots and building, was around 15,300,000 pesetas.

The first stone was laid on July 4, 1884, in an act attended by King Alfonso XII. From then on, there were changes in criteria and modifications to the project that resulted in the colossal building inaugurated in 1891. In 1927 another important expansion began with the acquisition of the houses of the Count of Santamarca, located on Calle de Alcalá, after the initial building. This extension was produced according to the project of the Bank's architect, José Yarnoz Larrosa, who proposed the extension of the façade, repeating the external image of the existing building and reserving only the architectural novelties of the time for the interior.

The property adopts the double industrial and representation character of the establishment. The first can be seen practically throughout the building, with the exception of the main floor, which houses the most important offices and the most representative areas. The limited sculptural decorations are reserved for the chamfer of Cibeles and the main portals of Paseo del Prado and Calle Alcalá, the latter after the extension of 1927. Its execution was commissioned, for the most part, to Italian sculptors, although following the models ordered from the best-known Spanish sculptors of the time.

Night view of the North Façade (Alcalá Street) of the building. In the first place you can appreciate the expansion carried out by Rafael Moneo at the beginning of the centuryXXI.

Inside, and as far as the 1891 building is concerned, the honor staircase and the courtyard that was the General Fund and that today is the Library stand out. The monumental Carrara marble staircase, which is accessed from the Paseo del Prado gate, is a sample of the most traditional architecture, designed by the Bank's architects and executed by Adolfo de Aréizaga from Bilbao. It appears accompanied by a series of stained glass windows commissioned from the German company Mayer, which executes them following a symbolist style and incorporating numerous allegorical figures.

For its part, the industrial character of the Bank is materialized in the current Library, commissioned from the Mieres Factory, in which the exposed metal structure of cast iron is incorporated.

The plan is articulated from the entrance through the corner. This allowed the architect to distinguish the spaces towards the streets of Paseo del Prado and Alcalá. The façade, for its part, is of a quadripartite composition, it is made up of a plinth, two floors, a cornice and an inhabited roof.

The extension decided on in 1927 and completed in 1934 incorporates, inside the building, the architectural novelties of the time that Yarnoz had renounced on the outside. Just highlight the new operations yard, the rotunda that serves as an interior link between the two buildings and, due to its uniqueness, the vault. The huge operations patio departs from classical concepts and includes some examples of Art Deco, such as the upper stained glass window, or the decorative and functional piece located in the center of the patio. The roundabout connects this operating area with the main staircase and in its center stands a sculpture in honor of Echegaray, the work of Coullaut Valera. Inside it houses an important collection of paintings, with works by Goya, Mengs, Maella and Vicente López among other authors.

Expansion of the Banco de España by Rafael Moneo and completed in April 2006.

Finally, it should be noted that at the beginning of 2003 the Bank of Spain began reconstruction works on the building located at the corner of Alcalá and Marqués de Cubas streets, the former headquarters of Banca García-Calamarte, thus closing the the block that occupies its headquarters in Madrid. The project, prepared by the architect Rafael Moneo, consolidates the unitary character of the architectural ensemble, maintaining the formal continuity of the original approaches on its façade.

Vault and gold reserves

Evolution of the gold reserves of the Banco de España (1957-2015)

The Bank of Spain owns 9.1 million troy ounces of gold (about 283 tons) (2019), which are deposited in its own vaults and in different entities in London and New York. In 2004 the total reserve of this metal amounted to about 17 million troy ounces. In the year 2005 it ends with 14.7 million; in 2006, with 13.4 million, and in December 2007, after the sale of a large part of the reserves with the current reserve of 9.05 million troy ounces, equivalent to 281.5 tons of gold (see chart).. According to IMF data, Spain ranks 20th among the 40 largest gold reserves in the world (as of July 2015).

The construction works of the vault for the safekeeping of gold were framed within the remodeling project of the Banco de España building conceived by the architect José Yarnoz Larrosa. The works began at the end of 1932, and finished two and a half years later, with 260 workers working in three shifts. The initiative for the project came from Deputy Governor Pedro Pan, and its approximate cost was 9 and a half million pesetas. The inauguration (along with that of the rest of the extension) took place shortly before the Civil War, during which it served as a refuge from bombing for the families who lived in the bank building. The chamber is 48 meters deep and its surface is 2500 square meters. Its design seems to be inspired by a similar construction of the vault of the Vienna Savings Bank.

The construction is made of reinforced concrete and cast cement. The works required meticulous geological studies and analysis of the materials to be used. In the construction it was necessary to pipe and divert the hanging water present in the subsoil, at a depth of 25 m and which presses on the walls of the chamber. This water corresponds to the streams of Las Pascualas (which runs almost at surface level along the Castellana and which was, in its day, channeled) and Oropesa (underground, down through Alcalá), the same one that feeds the spring of the Cibeles

Access to the chamber is through several armored doors, the first of which weighs around sixteen tons and was manufactured in Pennsylvania, United States, by the company Fres York. The other smaller doors, but also armored, were manufactured by the same house. Its weight oscillates between fifteen and eight tons. The lowering of these gates, due to their weight, was very costly. The steel cables that were used were so deteriorated that they could only be used once and specialized personnel had to be hired. The armored door has a very small tolerance (tenths of a millimeter), so any impurity in the arch prevents it from fitting correctly and from being able to activate the anchor points. In addition, the door is made of steel, but not stainless, so you have to take great care in its maintenance. It should always be covered in a thin layer of Vaseline to prevent it from rusting.

The security measures at all accesses to the chamber are extreme. In addition to the armored doors, there are security bars and a door is never opened without having previously closed the previous one. In an emergency, an alarm is activated that releases the groundwater that was channeled into the work, flooding this access at will. This mechanism has never been used, as in the eighty years of the camera's life there has never been an unauthorized access attempt.

The gold chamber, properly speaking, houses the numismatic collection of the Bank of Spain, only comparable to those of the Archaeological Museum or the Royal Mint, and part of the gold reserves.

Most of the coins that make up this collection come from popular subscriptions made during the civil war (donations, sometimes voluntary) to finance the army and from deposits made from the year 37, as a result of the Decree of Nationalization of Foreign Currency and Gold. This decree forced all citizens to deliver the gold in paste or coin that they had in their possession to replenish the gold reserves that the republican government had sent to Moscow as payment for war supplies. These deliveries were made in the form of deposits. Most of them are not recoverable because depositors chose to cash out the gold value of their coins. Others, whose coins had numismatic or sentimental value, preferred to keep the deposit in the hope of recovering them when regulations allowed. Some of the latter are still being returned, provided that the claimant can prove his right to the deposit.

The collection, of great numismatic value, is made up of more than half a million pieces and includes coins of very diverse origin, since it includes not only the numismatic history of the Iberian Peninsula, but also Greek, Roman, Byzantine, Spanish American, French and British. It also has a complete collection of gold dollars, minted since the XVII century. There is also a less numerous collection of silver pieces.

Branches

Since June 2011, the Banco de España branch network is made up of 15 branches, which offer their services to the public and credit institutions. They are located in La Coruña, Alicante, Badajoz, Barcelona, Bilbao, Las Palmas, Málaga, Murcia, Oviedo, Palma de Mallorca, Seville, Tenerife, Valencia, Valladolid and Zaragoza.

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  Former headquarters of Santander (Cantabria).

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  Former headquarters of Salamanca.

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  Old Vitoria headquarters.

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  Valladolid Headquarters.

Curiosities

In January 2021, the squall "Filomena" froze the clock of the Bank of Spain for the first time in 130 years. Specifically, it was at 11:35 in the morning, on Saturday, January 9.

Source of Banco de España profits

The Banco de España's profits are mainly due to income from interest accrued on its main assets and profits from financial operations (mainly due to capital gains on the sale of foreign currency and purchase-sale of foreign securities). These benefits are fully deposited in the state Treasury.