Creation of the Banco de la República
The Banco de la República was established as the Central Bank of Colombia on the 25th of July 1923 by means of Law 25. The Bank was organised as an anonymous society with a starting capital of 10 million in gold, of which the Government provided 50% and foreign and national commercial banks as well as some private individuals contributed the remainder. This entity was exclusively entrusted with the faculty of issuing Colombian legal tender, administrating the country’s international reserves, acting as banker to the Government and serving as a last resort moneylender. The Bank’s Board of Directors, composed of 10 members consisting of representatives both from the private and public sectors, was entrusted by Law 25 with the exercise of regulatory and monetary controls with strict adherence to the parameters of financial orthodoxy.The Board was also given the responsibility of establishing the discount rate and intervening to control interest rates.
The Banco de la República plays a fundamental part in the economic and institutional organisation of the country. With the passage of time, this institution has undergone important changes, and has adapted itself to serve an economy in a permanent process of growth and development