The Spanish banking system from 1900 to 1975

The history of the modern Spanish banking system began in 1856 when the Cortes (parliament) passed the Issuing Banks Law and the Credit Companies Law. The first of these Laws enshrined the principle of plurality of issuance and, at the same time, renamed the Banco Español de San Fernando the Banco de España, the name it has retained to the present day. A significant number of establishments were founded under the aegis of the Issuing Banks Law. By 1866 the number of banks had thus risen from three (the Banco Español de San Fernando, the Banco de Barcelona and the Banco de Cádiz) to 21. The second of the two Laws, the Credit Companies Law, led to the creation of a series of institutions authorized to conduct a wide range of activities, from bill discounting and trade credit, through to long-term lending and investments in company shares and bonds. In Madrid, the Sociedad de Crédito Mobiliario Español, the Sociedad Española Mercantil e Industrial and the Compañía General de Crédito, were founded, each with a portion of French capital. These were not the only banks to be created, as investment banks also sprang up in all of Spain’s regions. Businessmen were particularly active in Catalonia and Valencia, and it was there that three of the most significant establishments emerged: the Sociedad Catalana General de Crédito, the Crédito Barcelonés and the Sociedad Valenciana de Fomento.