The Bank of Spain (BdE) is the Spanish central bank. In turn, within the framework of the Single Supervisory Mechanism (SSM), it is the supervisor of the Spanish banking system, together with the European Central Bank. Its activity is regulated by the Autonomy Law of the Bank of Spain.
The Bank of Spain is, therefore, the Spanish central bank. This belongs to the European System of Central Banks (ESCB). Its main function is to supervise the Spanish banking system, as well as to forward the information to the European Central Bank (ECB), on which it depends.
Functions of the Bank of Spain
The functions of the Bank of Spain include:
Functions as a member of the ESCB (European System of Central Banks)
Since January 1, 1999, the Banco de España has participated in the development of the following basic functions attributed to the ESCB:
- Define and execute the monetary policy of the euro area, with the main objective of maintaining price stability in the euro area as a whole.
- Carry out foreign exchange operations that are consistent with the provisions of article 111 of the TEU (Court of the European Union), as well as possess and manage the official foreign exchange reserves of the State.
- Promote the smooth operation of payment systems in the euro area. In this context, urgent liquidity provision operations to entities are framed.
- Issue legal tender tickets.
Functions as a national central bank
Respecting the functions that derive from its integration into the ESCB, the Autonomy Law grants the Bank of Spain the following functions:
- To own and manage the foreign exchange and precious metal reserves not transferred to the ECB.
- Promote the proper functioning and stability of the financial system and, without prejudice to the functions of the ECB, of the national payment systems. In this context, urgent liquidity provision operations to entities are framed.
- Supervise the solvency and compliance with the specific regulations of credit institutions, other entities and financial markets whose supervision has been attributed to it.
- Put the metallic currency into circulation and carry out, on behalf of the State, the other functions entrusted to it with respect to it.
- Prepare and publish statistics related to their functions and assist the ECB (European Central Bank) in the compilation of statistical information.
- Provide treasury and financial agent services for public debt.
- Advise the Government, as well as carry out the reports and studies that are necessary.
It is important to mention that monetary policy decisions do not rest with the Bank of Spain, but with the European Central Bank.
Governing bodies of the Bank of Spain
The governing bodies of the Bank of Spain are the following:
- The governor.
- The Deputy Governor.
- The Governing Council.
- The Executive Commission.
The Bank of Spain, in the exercise of its functions and activities, approaches the transparency regime from two perspectives:
- Active advertising of the entities and subjects included in its scope of application.
- The right of access of citizens to public information.
The publicity exercise, the purpose of which is to disseminate information whose knowledge may be relevant for transparency, is articulated in the following sections:
- Institutional and planning.
- Of legal relevance.