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The Bank of Spain: a National Financial Insitution

Author

Listed:
  • Pablo Martín-Aceña

    (Universidad de Alcalá, Madrid)

  • Elena Martínez Ruíz

    (Universidad de Alcalá, Madrid)

  • Pilar Nogués Marco

    (Universidad Carlos III, Madrid)

Abstract

TThis paper explains the process by which the Bank of Spain became a national bank, first by obtaining the monopoly of issue in 1874 and then by extending its sphere of financial action by creating the country's only network of bank branches before 1900. The implementation of a "unified or national banknote" in 1884 and the creation of a system of free transfers for its clients were also decisive steps towards the Bank's transformation from a local Madrid -based institution into a Spanish national institution. The paper also argues that the transformation of the Bank of Spain into a genuine national financial institution contributed to the modernization of the Spanish administrative fabric.

Suggested Citation

  • Pablo Martín-Aceña & Elena Martínez Ruíz & Pilar Nogués Marco, 2012. "The Bank of Spain: a National Financial Insitution," Documentos de Trabajo (DT-AEHE) 1205, Asociación Española de Historia Económica.
    • Handle: RePEc:ahe:dtaehe:1205
    as

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    References listed on IDEAS

    as
    1. Charles A. E. Goodhart, 1995. "The Central Bank and the Financial System," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262071673, December.
    2. C. A. E. Goodhart, 1995. "The Central Bank and the Financial System," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37915-2.
    3. Martín-Aceña, Pablo & Martínez-Ruiz, Elena & Nogues-Marco, Pilar, 2019. "Maximizing profits or pursuing the public good? The bank of Spain as a central bank," Working Papers unige:124125, University of Geneva, Paul Bairoch Institute of Economic History.
    4. Hugh Rockoff, 1991. "Lessons from the American Experience with Free Banking," Palgrave Macmillan Books, in: Forrest Capie & Geoffrey E. Wood (ed.), Unregulated Banking, chapter 3, pages 73-129, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Emma M., Iglesias & J. Carles, Maixé-Altés, 2021. "Money Market Integration in Spain in the Ninetheen Century: The Role of the 1875-1885 Decade," MPRA Paper 109219, University Library of Munich, Germany.
    2. CHOI, Jay Pil & FURUSAWA, Taiji, 2018. "Transfer Pricing and the Arm's Length Principle under Imperfect Competition," Discussion paper series HIAS-E-73, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    3. MARTÍNEZ-RUIZ, Elena & NOGUES-MARCO, Pilar, 2018. "The Political Economy of Exchange Rate Stability During the Gold Standard. Spain 1874—1914," Discussion paper series HIAS-E-75, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    4. Martínez-Ruiz, Elena & Nogues-Marco, Pilar, 2017. "The political economy of exchange rate stability during the gold standard. The case of Spain, 1874-1914," Working Papers unige:91510, University of Geneva, Paul Bairoch Institute of Economic History.
    5. Nogues-Marco, Pilar & Herranz-Loncán, Alfonso & Aslanidis, Nektarios, 2017. "The making of a national currency. Spatial transaction costs and money market integration in Spain (1825-1874)," CEPR Discussion Papers 12453, C.E.P.R. Discussion Papers.
    6. Martín-Aceña, Pablo & Martínez-Ruiz, Elena & Nogues-Marco, Pilar, 2019. "Maximizing profits or pursuing the public good? The bank of Spain as a central bank," Working Papers unige:124125, University of Geneva, Paul Bairoch Institute of Economic History.

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    More about this item

    Keywords

    Bank of Spain; financial history; banknote issue; banking modernization;
    All these keywords.

    JEL classification:

    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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