The Bank of the Nation, known in Spanish as the Banco de la Nación, is the bank which represents the Peruvian government

Government of Peru

Peru is a presidential representative democratic republic with a multi-party system. Under the current constitution, the President is the head of state and government; he or she is elected for five years and cannot seek immediate re-election, he or she must stand down for at least one full...

 in financial transactions in both the public and private sectors, as well as at both domestic and international levels. It is an entity belonging to the Peruvian Ministry of Economy and Finance

Ministry of Economy and Finance (Peru)

The Ministry of Economy and Finance of Peru is the entity in charge of the planning and execution of the economic policies of the Peruvian Government with the goal of optimizing the economic and financial activities of the state, establish macroeconomic activity, and achieve the sustainable growth...

. Its headquarters is located in the San Isidro District of Lima

Lima

Lima is the capital and the largest city of Peru. It is located in the valleys of the Chillón, Rímac and Lurín rivers, in the central part of the country, on a desert coast overlooking the Pacific Ocean. Together with the seaport of Callao, it forms a contiguous urban area known as the Lima...

, the capital of Peru

Peru

Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....

.

History

The BN (its official Spanish initials) was created January 27, 1966 by Law 16000, approved by the Peruvian congress

Congress of Peru

The Congress of the Republic of Peru or the National Congress of Peru is the unicameral body that assumes legislative power in Peru.Congress consists of 130 members of congress , who are elected for five year periods in office on a proportional representation basis...

 and was signed into law by the then-president Fernando Belaúnde Terry

Fernando Belaúnde Terry

Fernando Belaúnde Terry was President of Peru for two non-consecutive terms . Deposed by a military coup in 1968, he was re-elected in 1980 after eleven years of military rule...

. Its predecessors date to 1905, when José Pardo

José Pardo y Barreda

José Simón Pardo y Barreda was a Peruvian politician who twice occupied the Presidency of Peru, from 1904 to 1908 and 1915 to 1919....

 created the Caja de Depósitos y Consignaciones or Bank of Deposits and Consignments.

The Bank of the Nation has function uninterrupted since its creation. Currently, it employs its own system of ATMs

Automated teller machine

An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...

 and provides its own credit and debit cards.

Functions

Throughout the years, the bank's functions have either been expanded or reduced according to the policies of the current government although its most basic functions usually never change. Currently, the Bank of the Nation is used to:

• Provide payment services in accordance with the policies of the General Directory of the Public Treasury
• Provide collection services on behalf of tax creditors
• Perform operations on behalf of sub-accounts of the public treasury
• Act as the primary financial agency of the state
• Act on the behalf of other banks and financial institutions in the channeling of resources
• Participate in the foreign commerce transactions of the state
• Grant credit to the Central Government
  Government of Peru
  Peru is a presidential representative democratic republic with a multi-party system. Under the current constitution, the President is the head of state and government; he or she is elected for five years and cannot seek immediate re-election, he or she must stand down for at least one full...
  
  , to Regional governments
  Regional Governments of Peru
  Regional Governments, in the Government of Peru, is a government organization which organizes, conducts, and manages, each one of the twenty-five regions of Peru. It has political, economic, and administrative autonomy in the subjects of its matter....
  
  , and to local governments
  Municipalities of Peru
  Municipalities, in Peru, are the government organizations that govern the provinces and districts of that country.-Classification:According to the Base law of Municipalities, these entities are classified in to Provincial Municipalities and District Municipalities. The provincial municipalities...
  
  , in cases when they have not been granted by the National Finance System
• Credit granted by the bank is not subject to the limits established by the General Law of Banking, Financial, and Insurance institutions
• Provide correspondence services
• Provide services to accounts of entities belonging both the National public sector and state providers
• Receive savings deposits in locations where private banks don't have offices

Distribution

Branch offices can be found in every Peruvian province

Provinces of Peru

The provinces of Peru, known in Spanish as provincias, are the second-level administrative subdivisions of the country. They are divided into districts . There are 195 provinces in Peru, grouped into 25 regions except for the Lima Province which does not belong to any region. This makes an average...

, with a total of 403 branch offices, of which 87% are located in rural areas of the country where private banks do not operate

External links

• Bank of the Nation
• Ministry of Economy and Finance