Bank of Spain

The Bank of Spain, 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. It is the national supervisor of the Spanish banking system, and as such its activity is regulated by the Law of Autonomy of the Banco de España.HistoryOriginally named the Banco Nacional de San Carlos, it was founded in 1782 by Charles III, to stabilize government finances through its state bonds . Although it aided the state, the bank was initially owned privately by stockholders. Its assets included those of "Spanish capitalists, French rentiers, and surprisingly, several treasuries of Indian communities in New Spain" . 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 financial difficulty.Treasury minister Luis López Ballesteros created a fund of 40 million reales in 1829 against which the bank could issue its own notes at Madrid. It did so after renaming itself Banco Español de San Fernando.In 1844 the competing Banco de Isabel II and Banco de Barcelona were established, followed in 1846 by the Banco de Cádiz. In 1847, following overexposure in the failing property market of Madrid, the Banco de Isabel II merged with Banco de San Fernando, retaining the latter name.