(also known as Banco República or BROU) is a
state-owned
State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed to ...
commercial bank
A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit.
It can also refer to a bank or a division of a larger bank that deals with whol ...
in
Uruguay
Uruguay, officially the Oriental Republic of Uruguay, is a country in South America. It shares borders with Argentina to its west and southwest and Brazil to its north and northeast, while bordering the Río de la Plata to the south and the A ...
, founded in 1896 under the presidency of
Juan Idiarte Borda.
The most important Uruguayan bank with the largest number of customers, it plays a dominant role in
lending
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money.
The document evidencing the debt ( ...
and
deposit in the Uruguayan
market. It currently has 124 branches throughout the national territory and 2 abroad.
History
In the last decades of the 19th century, different social groups such as small merchants and public employees, who, in the framework of the
Baring Crisis, demanded access to bank credit, so as not to resort to usury private banks and various lenders.
In the ''Agricultural Livestock Congress of 1895'', the creation of a financial institution had been called for to provide agricultural credit, and to adapt the terms and conditions required for rural production. The creation of the Bank was proposed by then Minister of Finance Federico Vidiella, was widely discussed in
Parliament
In modern politics and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: Representation (politics), representing the Election#Suffrage, electorate, making laws, and overseeing ...
and in the local press, and on August 4, 1896, the law containing the thirty-four bases of the Organic Charter was promulgated. On August 24, 1896, the bank's first board of directors was installed, and on October 22 it formally opened its doors, with 54 employees. The first deposit account was made by President
Juan Idiarte Borda.
The Organic Charter granted the bank the power to issue banknotes —from 1907 it had a monopoly on it—. Over time, it developed a wide variety of activities, such as a
commercial
Commercial may refer to:
* (adjective for) commerce, a system of voluntary exchange of products and services
** (adjective for) trade, the trading of something of economic value such as goods, services, information or money
* a dose of advertising ...
and specialized credit bank, a state bank and, gradually, the Uruguayan
monetary authority
A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monet ...
.
After the 1929 crisis, the Banco de la República became the key piece of economic policy. In the 1930s, the bank was restructured and divided into a Banking Department and a Currency Management and Money Supply Department. In 1941, the Board of Directors resolved to create the Department of Economic Research, thus perfecting the Bank's advisory role to government bodies.
Due to the banking crisis that took place in the 1960s, the department in charge of currency management and money supply was separated from the institution and turned into a new entity, the
Central Bank of Uruguay
The Central Bank of Uruguay (, BCU) is the central bank of Uruguay.
History
The Central Bank of Uruguay was established on July 6, 1967 as an autonomous state entity (), with the passing of the 196th article of the Constitution of 1967. Prior ...
, created with the
Constitution of 1967.
Headquarters
The bank's headquarters are located in
Ciudad Vieja
Ciudad Vieja () is a town and municipality in the Guatemalan Departments of Guatemala, department of Sacatepéquez. According to the 2018 census, the town has a population of 32,802Montevideo
Montevideo (, ; ) is the capital city, capital and List of cities in Uruguay, largest city of Uruguay. According to the 2023 census, the city proper has a population of 1,302,954 (about 37.2% of the country's total population) in an area of . M ...
. The building, designed by the Italian architect Giovanni Veltroni in a
neoclassical style, was built in 1866 to house the Italian Bank, and was later used successively by other banking institutions, such as ''Banco Unión'', or by the ''Junta de Crédito Público'' and by ''Banco Nacional'' until its dissolution.
Branches
As of February 2023 the bank maintained 124
branches throughout Uruguay and 2 overseas (
Buenos Aires
Buenos Aires, controlled by the government of the Autonomous City of Buenos Aires, is the Capital city, capital and largest city of Argentina. It is located on the southwest of the Río de la Plata. Buenos Aires is classified as an Alpha− glob ...
and
New York City
New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
).
Colonia del Sacramento
Colonia del Sacramento (; ) is a city in southwestern Uruguay, by the Río de la Plata, facing Buenos Aires, Argentina. It is one of the oldest towns in Uruguay and the capital of the Colonia Department. As of the 2023 census, it has a populatio ...
, Colonia
File:Agencia B.R.O.U. General Flores.jpg, Goes, Montevideo
Presidents of the Bank
List of the presidents of Banco de la República Oriental del Uruguay before the creation of
Banco Central del Uruguay.
References
External links
Banco de la República Oriental del Uruguay official website
Economy of Uruguay
Government-owned companies of Uruguay
Banks of Uruguay
Banks established in 1896
1896 establishments in Uruguay
Companies based in Montevideo
Uruguayan brands
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