2014-11-13

Bank deutscher Länder


The Bank deutscher Länder (Bank of the German States), abbreviation BdL, was the forerunner of the Deutsche Bundesbank. It was founded on 1 March 1948.

The main task of the BdL was to manage currency policy in the American and British occupation zones in Germany (Bizone). On 21 June 1948 the Bank deutscher Länder introduced the Deutsche Mark currency in the three western zones of occupation. On 1 November 1948, state central banks in the French zone, which had adopted Deutsche Mark in June too, joined the BdL. In May 1949 the Federal Republic of Germany (West Germany) was founded, however, the BdL remained subject to the control of the three Western Allied powers—the United States, the United Kingdom and France until 1951. Later, BdL became an independent agency of the West German states, similar to the concept of independence displayed by the Federal Reserve System in the United States.

Whose Independence?

In the process of introducing the Deutsche Mark in 1948, the states' central banks (German: Landeszentralbanken, LZB), then entities of the individual German states, founded the Bank deutscher Länder as their subsidiary for the central purpose of issuing the new currency, avoiding thus conflicts among the states.

The capital stock of the BdL, 100,000 Deutsche Mark, was given by the LZB.

100,000 Deutsche Mark
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