Central Bank in Costa Rica

 





Research about the history and the role of the Central Bank in Costa Rica and reflect on its policies.

 

Costa Rica had their first bank in 1857, it was Banco Nacional de Costa Rica (Banco Medina), in the following years was born Banco la Unión and Banco Anglo costarricense. In the early 1900s an important entity was born, this was the Banco International de Costa Rica, it helped small farmers to obtain credit to boost their activities.

Given the incipient number of financial institutions that began to establish themselves in the country, the needed arose to create an entity whose main function was to supervise and guide the country's finances, in addition to establishing parameters for the other institutions.

Thus, in 1950 the Central Bank of Costa Rica was born, which since its inception and over the next few years develops policies to maintain and improve the Costa Rican economy.

The main policies that correspond to the Central Bank in the present are:

·       Control inflation in the country.

·       Help commercial banks when they have problems.

·       Maintain minimum deposits from commercial banks.

·       Publish monetary and banking statistics.

·       And others.

In general, it can be said that the central bank is very important for the economy of a country since it is the entity that with its decisions can affect all economic areas of the nation. It is the entity in charge of guiding it when it must recover from adverse local or global situations that can affect the population. It is also the one who, hand in hand with the government, should promote the path of development of the countries.

It is important to highlight that the Central Bank must be autonomous, that is, it must not follow political ideologies or depend on the decisions of the country, and this is where its importance also lies, being impartial allows it to make decisions for the benefit of society.

 

 

References

Archivo Nacional de Costa Rica. (1994).Bancos. CR-AN-AH-BANCOS-000001-007786 

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