Central Bank of San Marino

The Central Bank of the Republic of San Marino, commonly known as the Central Bank of San Marino or CBSM, is the small republic’s principal financial supervisory authority and a public institution serving the state and its financial system. Although it is called a central bank, its role differs from that of a fully fledged national monetary authority because San Marino uses the euro and does not issue an independent national currency. Its work is therefore concentrated on financial stability, supervision, payment infrastructure, public-sector banking services and the protection of savings. The institution was created by combining two pre-existing bodies: the Istituto di Credito Sammarinese, a credit institution with public and private shareholders that had performed central-bank-related functions, and the Ispettorato per il Credito e le Valute, a public administrative inspectorate responsible for credit and currency supervision, including anti-money-laundering activity. The merger brought supervisory and banking functions into a single institutional framework. Under its statutory mandate, the CBSM seeks to promote the stability of San Marino’s financial system and protect savings by supervising authorised credit, financial and insurance intermediaries. It also provides banking and financial services to the state and public administration, helping coordinate liquidity management and financing choices. In addition, it supports the domestic financial system through incentive and guidance functions and facilitates economic activity by establishing and maintaining reliable payment systems. The bank can issue regulations, orders, circulars, standard letters, recommendations and instructions within its legal remit. These instruments may be binding on supervised entities or serve to interpret and explain statutory requirements. Measures of general public relevance may be published. The institution also advises the government and parliament on economic and financial matters related to its objectives, comments on proposed legislation, helps draft measures within its competence and participates with state representatives in San Marino’s representation before relevant international financial institutions. The CBSM is accountable for achieving its objectives to the Grand and General Council, San Marino’s parliament. Its governance structure includes a shareholders’ meeting, a Governing Council, a director-general, a Supervision Committee and a Board of Statutory Auditors. The Governing Council sets policy and manages the institution, while the Supervision Committee carries out oversight of the banking, financial and insurance sectors through regulation, inspections and reporting. The shareholder structure is state-dominated: the Republic of San Marino is the majority shareholder, with the remainder held by domestic banking institutions. The bank’s activities reflect San Marino’s position as a euro-using microstate with a relatively concentrated financial sector. It does not operate as a conventional issuer of a sovereign currency; instead, it functions as the country’s financial regulator, lender and institutional banking partner within the legal arrangements governing the use of the euro. Its responsibilities also place it at the intersection of domestic financial governance, prudential supervision, anti-money-laundering controls and international financial cooperation.

The Central Bank of the Republic of San Marino emerged from the consolidation of two institutions that had divided central-banking and supervisory responsibilities in the republic. The Istituto di Credito Sammarinese was a credit body with public and private shareholders that acted in a central-bank-related capacity, while the Ispettorato per il Credito e le Valute was a public administration office concerned with the supervision of credit and currencies and with combating money laundering. Their merger created a unified institution able to combine public financial services, prudential oversight and regulatory functions. The CBSM’s institutional design reflects San Marino’s monetary circumstances. The republic uses the euro under its arrangements with the European Union and therefore does not possess the full monetary-policy toolkit of a state issuing its own currency. The bank’s central role is consequently not the management of an independent national currency, but the stability and orderly operation of the domestic financial system. Its mandate includes supervision of banks, financial intermediaries and insurance businesses, protection of savings, support for payment systems and provision of financial services to public authorities. The bank operates through a statutory governance framework. Its shareholders’ meeting approves the financial statements and annual report prepared by the Governing Council and considers the admission of new shareholders. The Republic of San Marino is represented at the shareholders’ meeting by the Secretary of State for Finance and Budget and another government representative. The state holds the majority of the institution’s capital, while domestic financial institutions hold minority positions. The Governing Council is responsible for policy and management. It is composed of a chairman and five councillors appointed by the Grand and General Council for five-year terms, with the possibility of one additional term. The council prepares the annual financial statements, appoints senior management and oversees the bank’s general organisation. The director-general participates in shareholder and Governing Council meetings without voting rights, manages human resources and coordinates the institution’s work. The Supervision Committee performs the direct supervisory function through inspections, reporting and regulation, while statutory auditors review management and financial-statement compliance. The CBSM may adopt a range of regulatory and interpretative instruments, including regulations, orders, circulars, standard letters, recommendations and instructions. These instruments support the supervision of authorised entities and provide guidance on the application of laws within the bank’s remit. The institution also advises the government on economic measures, gives opinions on proposed laws affecting its responsibilities and cooperates with state representatives in international financial bodies in which San Marino participates. In practical terms, the bank is both regulator and public financial-service provider. Its responsibilities cover the resilience of the banking and financial sector, the integrity of payment arrangements, the safeguarding of savings and the state’s access to banking and financing services. Because the available reference material does not provide a verified establishment year, detailed chronology, current leadership confirmation or a complete record of public initiatives, those points remain subject to further review.

• 2018

  Catia Tomasetti becomes chairman

  [1]Central Bank of San Marinoen.wikipedia.org

  Catia Tomasetti was identified as chairman of the Governing Council from May 2018 in the referenced institutional profile.

• Creation through institutional merger

  [1]Central Bank of San Marinoen.wikipedia.org

  The Central Bank of the Republic of San Marino was formed by merging the Istituto di Credito Sammarinese with the Ispettorato per il Credito e le Valute, bringing central-bank-related and financial-supervisory functions together.

• State majority ownership established in the capital structure

  [1]Central Bank of San Marinoen.wikipedia.org

  The Republic of San Marino became the majority shareholder, while domestic banking institutions retained minority holdings reserved for eligible credit, financial and insurance-sector undertakings.

• Euro-use limits conventional monetary-policy functions

  [1]Central Bank of San Marinoen.wikipedia.org

  Because San Marino uses the euro, the institution operates primarily as a financial supervisor and public financial-services provider rather than as an independent currency-issuing monetary authority.

Public financial institution and financial supervisory authority of San Marino

• Regulatory service

  Financial supervision

  The CBSM supervises authorised credit, financial and insurance intermediaries operating in San Marino. Its supervisory toolkit includes inspections, reporting requirements, regulations, orders, circulars, recommendations and instructions. The objective is to support financial-system stability, protect savings and ensure that supervised entities comply with applicable legal and prudential requirements.

• Public financial service

  Public-sector banking and financial services

  The institution provides banking and financial services to the Republic of San Marino and its public administration. This role includes supporting the coordination of public-sector liquidity management and the selection of financing arrangements, linking the central bank to the government’s broader financial administration.

• Financial infrastructure

  Payment-system support

  The CBSM facilitates economic and financial activity by establishing and maintaining efficient and reliable payment systems for San Marino. This function is particularly important in a euro-using microstate whose domestic financial infrastructure must operate within wider European monetary and payments arrangements.

• Central-banking function

  Financial stability and savings protection

  Rather than managing an independent national currency, the bank focuses on the stability of San Marino’s financial system and the protection of savings. It also provides support, incentives and guidance to the domestic financial sector within the authority granted by national law.

1. 1Central Bank of San Marinoen.wikipedia.org