The Banco de Portugal (, lit. 'Bank of Portugal') is the national central bank for Portugal within the Eurosystem. It was the Portuguese central bank from 1846 to 1998, issuing the escudo. It was founded by royal charter in 1846, during the reign of Queen Maria II of Portugal, by a merger of the Banco de Lisboa, the first bank founded in Portugal, and insurer Companhia Confiança Nacional.
The bank has branch offices in Castelo Branco, Coimbra, Évora, Faro, Funchal, Leiria, Porto (Caixa Filial) and Viseu.
In addition to its monetary role, the Banco de Portugal is also a financial supervisory authority. In that capacity, it increasingly implements policies set at the European Union level. It is the national competent authority for Portugal within European Banking Supervision.[3] It is a voting member of the Board of Supervisors of the European Banking Authority (EBA).[4] It is Portugal's designated National Resolution Authority and plenary session member of the Single Resolution Board (SRB).[5] It is also a member of the European Systemic Risk Board (ESRB).[6]
History
Foundation
Queen Maria II of Portugal established the bank by royal charter on 19 November 1846 to act as a commercial bank and issuing bank. It came about as the result of a merger of the Banco de Lisboa, the first bank founded in Portugal, and the Companhia de Confiança Nacional, an investment company specialised in the financing of the public debt.
The bank was designated by the Portuguese Crown as the emitter of legal tender, at the time the Portuguese real, which it continued producing until 1911.
Republic
Following the Implementation of the Republic in 1910, the Banco de Portugal began to emit the Portuguese Escudo.
In 1932, the bank established the Biblioteca do Banco de Portugal, one of the most significant private libraries in Portugal.
In 1946, the institution was bestowed the honor of Grand Cross of the Order of Christ by the President of Portugal.
During the Estado Novo, the bank pursued a vigorous policy of gold acquisition starting in 1957, which has contributed towards Portugal's present-day status of having the 14th largest gold reserve in the world.
Nationalization
Following its nationalisation in September 1974 and its new Organic Law (1975), the Banco de Portugal was, for the first time, responsible for the supervision of the banking system.
It is an integral part of the European System of Central Banks, which was founded in June 1998.
The Banco de Portugal ceased emission of the Portuguese Escudo in 1999, with the country's adoption of the Euro.
Contemporary
In 2013, the bank announced that it would pay €359 million in dividends, referring to the year of 2012.[7]
In 2014, the bank announced that it would pay €202 million in dividends, referring to the year of 2013, representing a steep decline in comparison to 2012.[8]
In August 2014, Banco de Portugal announced it was restructuring Portugal's second biggest bank, Banco Espírito Santo, by splitting the bank in two. During the bank restructure, one of the lenders, Oak Finance, had its loan liabilities remain with Banco Espírito Santo. This triggered a lawsuit from a group of investors including: hedge funds and the New Zealand Superannuation Fund.[9]
Governors
Prior to 1887, the Banco de Portugal was governed by a chairman of the board. Since then, the administration has been entrusted to the governor of the Banco de Portugal.[10] Central bank governors are proposed by the finance minister and nominated by the cabinet for a five-year term and can be reappointed once.[11]
See also
- Economy of Portugal
- Portuguese escudo, the former currency of Portugal
- Alves dos Reis
- List of central banks
- List of financial supervisory authorities by country
External links
References
- Jan Weidner. The Organisation and Structure of Central Banks Katalog der Deutschen Nationalbibliothek, 2017^
- New Bank of Portugal governor to take over on Monday Reuters.com, 3 October 2025, retrieved 8 October 2025^
- National supervisors ECB Banking Supervision, retrieved 2025-11-19^
- Members and Observers European Banking Authority, retrieved 2025-11-19^
- National Resolution Authorities Single Resolution Board, retrieved 2025-11-19^
- List of ESRB Members and National Macroprudential Authorities European Systemic Risk Board, 2025-11-21^
- Banco de Portugal entrega 359 milhões ao Estado em dividendos após forte subida nos lucros^
- Banco de Portugal vai dar 202 milhões em dividendos ao Estado - Expresso.pt expresso.sapo.pt^
- Sovereign Wealth Fund Takes Legal Action Against Banco de Portugal Over Costly Debt Transfer Sovereign Wealth Fund Institute, 20 February 2015, retrieved 8 March 2015^
- Governors past and present www.bportugal.pt^
- Sérgio Gonçalves (18 July 2025), Portugal to decide next week on future of central bank chief Reuters.^