Functions
Introduction
The start of the Stage Three of Economic and Monetary Union (EMU) on January 1st, 1999 and the institution of the European System of Central Banks (ESCB) and the European Central Bank (ECB) have meant that several of the functions traditionally performed by the national central banks of the euro-area countries have had to be re-defined.
Given this background, it has been necessary to amend the Law of Autonomy 
(609 KB) of the Banco de España (Law 13/1994 of 1st June) by means of Law 66/1997 of 30th December and Law 12/1998 of 28th April so as to ensure the full integration of the Banco de España into the ESCB. Inter alia, the latter law acknowledges the powers of the ECB in defining the monetary policy of the euro area (and the implementation thereof by the Banco de España) and its authority regarding exchange rate policy. The law also acknowledges that the Banco de España, as a fully-fledged member of the ESCB, is subject to the provisions of the Treaty on European Union and to the Statute of the ESCB.
In the exercise of the functions arising from its status as an integral part of the ESCB, the Banco de España shall follow the guidelines and instructions emanating from the ECB.
Without prejudice to the foregoing, the Banco de España shall adopt the necessary regulations for the exercise of its functions. Regulations relating to monetary policy shall be called Circulares monetarias and regulations for the exercise of the rest of its powers shall be called Circulares. Both shall be published in the Boletín Oficial del Estado.
Functions as a Member of ESCB
Since January 1st, 1999 the Banco de España has been performing the following basic functions attributed to the ESCB:
- Defining and implementing the Eurosystem's monetary policy ,with the principal aim of maintaining price stability across the euro area.
- Conducting currency exchange operations consistent with the provisions of Article 109 of the Treaty on European Union, and holding and managing the States' official currency reserves.
- Promoting the sound working of payment systems in the euro area.
- Issuing legal tender banknotes.
Functions as a National Central Bank
Recognising the foregoing functions as a fully-fledged member of the Eurosystem, the Law of Autonomy stipulates the performance of the following functions by the Banco de España:
- The holding and management of currency and precious metal reserves not transferred to the European Central Bank.
- The promotion of the sound working and stability of the financial system and, without prejudice to the functions of the ECB, of national payment systems.
- The supervision of the solvency and compliance with specific rules of credit institutions, other entities and financial markets, for which it has been assigned supervisory responsibility, in accordance with the provisions in force.
- The placement in circulation of coins and the performance, on behalf of the State, of all such other functions entrusted to it in this connection.
- Preparation and publication of statistics relating to its functions, and assisting the ECB in the compilation of the necessary statistical information.
- Provision of treasury services and financial agent for government debt.
- Adviser to the government, preparing the appropriate reports and studies.