The Bank deutscher Länder (Bank of German States), abbreviation BdL, was the first central bank for the Deutsche Mark. It was founded on 1 March 1948 and was replaced in 1957 by the Deutsche Bundesbank.
The main task of the BdL was to manage currency policy in the American and British occupation zones in Germany. 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 the 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.
German coinage issued in 1948 and 1949 had the legend "BANK DEUTSCHER LÄNDER" on its obverse; after the Federal Republic of Germany was founded, the legend was changed in 1950 to BUNDESREPUBLIK DEUTSCHLAND. |
