The National Bank of Romania is a venerable institution with a rich tradition, built up over a century of institutional history, which combines and often overlaps with our national history. It was set up in 1880 as the 16th national bank in terms of date of establishment, out of almost 200 central banks in the world; that is, before other relevant institutions in Japan, Italy, Switzerland and the United States of America.

There was a need for political support to set up a central bank, as well as for meeting economic and social requirements: political and monetary stability, constant development of industry and commerce, a growing number of banks and commercial companies, an increase of the population, mainly in cities. Therefore, on 17 April 1880 the official Gazette published the Law for the establishment of an “account and circulation bank”, while King Carol I promulgated the Statutes of the NBR, with the relevant set of organization, functioning and management regulations.

Ion I. Câmpineanu (1841-1888)

The National Bank of Romania was established as a company with Romanian social capital, where the state held one third of the 60.000 shares, while private persons held the remaining two thirds. The Governor was to be appointed by the Government for a five-year term, he had to be a Romanian citizen and hold at least 40 NBR shares. The first general assembly of the shareholders took place on 15-17 July 1880 and lead to the appointment of the first governor, Ion I. Câmpineanu.

Eugeniu Carada (1836-1910)

The bank began, thus, its actual functioning. The internal rules and regulations were adopted, specialists were employed and four agencies, in Iași, Galați, Brăila and Craiova, were opened. The main activities of the bank were: granting of commercial and economic credits, sale of precious metals, depositing of assets and the issue of “promissory notes”. Printing of banknotes became a right granted for a 20 years period exclusively to the National Bank. The first banknotes of the NBR were printed starting with 1881, at the headquarters in Bucharest, in the bank’s newly established printing shops.

Regarded as the founder of the National Bank, Eugeniu Carada was appointed director in 1882 and was in office until his death in 1910. Even though he refused the proposal of prime-minister Ion C. Bratianu to hold the office of governor, Carada got actively involved in all activities and important projects with the bank, like establishing the printing house or assisting in the construction of the bank’s central headquarters. He was also constantly consulted before any important decisions were taken.

With no headquarters in place yet, after its establishment, the bank used to function in the building of the Senate on Boulevard Elisabeta and later on in the headquarters of the Rural Land Credit Bank, a space suitable for setting up the printing house. The leadership of the bank was permanently preoccupied with building new headquarters, in a way meant to respect all requirements of such an institution: from the employees’ offices, to the spaces dedicated to customer relations or the maximal security spaces for safekeeping the reserves and assets and for printing banknotes.

In 1881 the bank purchased a plot of land in Lipscani Street from the state, in order to build new headquarters. Formerly this was the location of the Șerban Vodă Inn. In September 1882 the leadership of the bank approved a blueprint designed by two French architects Cassien Bernard and Albert Galleron for the construction of the Palace of the National Bank of Romania. The Romanian architects Cerchez and Băicoianu were thereafter appointed for finalizing the works, which would be concluded in 1890.

Old Palace, vintage image

Gradually, the positive effects of having a central bank became increasingly visible. People started showing a growing confidence in banking activities, credits were stabilized, banking and financial institutions increased in number and diversified. The National Bank intervened in support of the national economy, whenever needed, and managed to avoid a severe devaluation of the national currency.

In 1901 the state withdrew from among the shareholders of the bank.

The bank continued to set up new agencies, and consequently, in 1914, it ensured a good functioning of its activities within 4 branches and 29 agencies, throughout the territory of Romania.

NBR branch in Galați (left) | NBR branch in Craiova (right)

The National Bank of Romania saw the need to adopt a completely different policy after the beginning of World War I, by granting credits to the state in order to cover war expenditures. Even more so, due to the fact that the metal coins’ circulation decreased dramatically because people were hoarding the silver coins. Therefore, the bank had to print paper money to substitute the missing small change.

1 leu banknote, 1915

Under the imminence of Romania being occupied by foreign forces, the National Bank took refuge in Iași, alongside other state institutions. In order to safeguard the national assets, after signing a protocol with the Russian imperial government, the Romanian government and the leadership of the bank approved moving the national reserves to Moscow. The bank shipped almost 94 tons of gold, jewelry, paintings, important documents and other treasures of the state, of the bank, of certain institutions and private persons, in 1916 and 1917. These assets were never returned in full, after the war.

After the end of World War I and the union of Transylvania and Romania in 1918, the National Bank got actively involved in the country’s reconstruction, starting a monetary unification, by replacing with lei the existing foreign currencies circulating over the united territories, while expanding the branches and agencies network throughout Romania.

NBR agency in Bazargic

NBR branch in Chișinău

The state resumed its place among the shareholders of the central bank in 1925. Romania would see a time of revival, modernizing and economic consolidation. The number of banks was growing, reaching a total of over 1,200 in 1934. Nonetheless, the effects of the economic depression at the beginning of the 1930s were felt in Romania as well. The National Bank of Romania intervened decisively in order to save the banking system and granted large amounts of money to commercial banks. However, in 1940, after numerous bankruptcies and mergers, there were only 500 banks left.

500 lei banknote, 1918 (left) | 25 bani coin, 1921 (top right) | 1 leu coin, 1924 (bottom right)

The development of bank operations and the increase in the number of employees in the inter-war period made the working space in the Old Palace insufficient. The bank purchased in 1938 the buildings at the back of the Old Palace in order to construct a new building. The blueprint was designed by architect Radu Dudescu, the head of the Architecture Division with the NBR, and a group of four Romanian architects. In the aftermath of the 1940 earthquake, the initial blueprint was altered to include anti-seismic protection elements, in line with the most modern standards of the time. Due to World War II and to the lack of workforce and building materials, the construction was delayed and would be concluded only at the beginning of the 1950s.

The National Bank of Romania undertook again to support the state during World War II, throughout such a difficult period. The unfortunate experience of relinquishing the reserves to Moscow determined the bank to find an alternative solution for protecting its gold assets. Consequently, in September 1944, with the agreement of the Government and the support of the army, of the Ministry of Finance and the Romanian Railway System, the bank set up a real covert operation, known under the name of Operation “Neptune” or “Tismana”, and succeeded in sheltering the reserves at the Tismana Convent, in a specially designed grotto. In 1947 all 190 tons of gold were brought back to Bucharest.

100 lei coin, 1943

The National Bank of Romania went through very difficult situations after the war, mainly caused by political changes, both domestically and in the region. Starting on 1 January 1947 the bank became state property and was granted the issuing privilege for an undetermined period; yet, the volume of circulating currencies was to be set by the Government.

In 1948 the bank converted to the Bank of the People’s Republic of Romania - State Bank, subordinated to the Ministry of Finance, while the leader of the bank was named “president”, having the rank of deputy minister. In 1965 the name was again changed into the National Bank of the Socialist Republic of Romania, directly subordinated to the government, while the head of the bank was again called governor.

100 lei banknote, 1952, Bank of the People’s Republic of Romania - State Bank

After the instatement of the communist regime in Romania, the banking system was reorganized according to the Soviet centralized system. Consequently, the National Bank had to give up a set of responsibilities to specialized banks, either newly established, or reorganized. All these banks were state institutions and each carried out its activities within a well-determined economic field, while bearing a relevant title: Investment Bank, House of Savings and Consignation, Bank for Agriculture and Food Industry, Romanian Bank for Foreign Trade. It was a system where competition had been eliminated and where all banks functioned respecting very strict directions and regulations decide by the government.

After 1990 the new democratic political regime initiated reforms needed for the transition to a market economy. In the light of these circumstances, the National Bank of Romania returned to normal. The institution was reorganized, through legislative changes, while the Statute of the NBR was modified, and the bank resumed the usual attributions held by a central bank in a market economy.

1 leu coin, 1992