Chapter 11 Central bank art collections 142 GPI 2020 The art of central banking For centuries, central banks have collected art. Many regularly host exhibitions and competitions, helping to bridge the gap between institutions and the public they serve, writes Danae Kyriakopoulou. THE motivations, magnitude ‘I am convinced that commissions and exhibitions. We and characteristics of central examine how it enables them to banks’ public engagement have economic and cultural strengthen their organisational changed profoundly in the last affairs, and money and culture, and motivate and support decade. Previously hidden away, literature and poetry, their staff. Finally, we cover art as quietly managing and operating are much more closely money, analysing the ways through the plumbing of the financial linked than many which some central banks have built system, these institutions have investment policies for their art come into the spotlight through people believe.’ collections, and money as art, looking their unconventional policies. Last Jean-Claude Trichet, president, at how questions on finance have year’s Global Public Investor probed European Central Bank (2003-11) inspired artists. how central banks leverage digital communication strategies and social Diverse origins media to strengthen their relationship The presence of art is a characteristic with the public and safeguard their of most central banks, if only in the most valuable resource, trust. form of a painting in the boardroom This year, we continue the series or a sculpture in the main entrance. on central banks’ public engagement But not all institutions document, by delving into their art collections. present and organise their art in This report explores how art can serve the form of a collection. Even fewer as a bridge between institutions and provide public information about the public, and has manifested itself it or have dedicated curator and in different cultures and histories. We investment teams looking after it. The look at how art collections function research presented in this report is as a tool for central banks to support based on an OMFIF database created their local economies and encourage for more than 30 central banks across creativity through competitions, five continents. OMFIF.ORG CENTRAL BANK ART COLLECTIONS 143 Most of the art collections in our sample date from the 20th century. The Banco de España and Banque de France are exceptions, their collections going back to the beginnings of the institutions themselves in the late 18th century and early 19th century, respectively. The Spanish central bank’s collection started in 1782 when the forerunner of the central bank was established by King Charles III as Banco Nacional de San Carlos. At that time, the bank commissioned portraits of the royal family as well as of its directors, including a portrait of its first director Francisco Cabarrús painted by Francisco de Goya in 1788 (right). In the case of the Banque de France, the first set of paintings (The Festival at Saint Cloud by Jean-Honoré Fragonard and three hunting scenes by Francesco Giuseppe Casanova) entered its collection in 1806, when Emperor Napoleon Bonaparte nationalised the bank. The paintings were sold as part of the purchase of the Hôtel des Économats to house central bank officials. More recently, the Bank of Canada’s art collection began in 1938, when on his retirement, Deputy Governor J.A.C. Osborne gave the bank a set of 25 first-edition prints of London scenes by Thomas Shotter Boys. At the same time, Governor Graham Towers authorised the bank to acquire a set of Canadian prints. In the US, the Federal Reserve’s fine arts programme was established in 1975 by Chair Arthur Burns in response to a White Banco de España’s House directive encouraging federal first director, partnership with the arts. Unlike Francisco Cabarrus. other collections, the Fed relies on Francisco de Goya, donations of artwork or outside funds 1788. to purchase works of art. Most European central banks’ art collections consist mainly of paintings, but this is not a global trend. In Colombia, Costa Rica and the years. It is exhibited in two museums, the world’s most precious jewels – Philippines for example, the central the Botero museum and the Miguel including the Darya-i-Nur, the world’s banks are also home to museums with Urrutia museum (which includes the largest pink diamond – the collection exhibits ranging from archaeological numismatic collection in Casa de was transferred to Bank Melli Iran in treasures to medieval goldwork and Moneda). One of Tehran’s most-visited 1937. It formed part of the reserves for pottery. Colombia’s central bank museums, the Treasury of National note issues. It later became collateral owns an art collection consisting of Jewels, is located inside the Central for government liabilities to the bank around 8,000 pieces spanning 500 Bank of Iran. Containing some of and was transferred to the CBI upon 144 CENTRAL BANK ART COLLECTIONS GPI 2020 1. Diverse origins Categorisation of central bank collection origins, Categorisation of central bank collection origins, Source: OMFIF by source of first object(s), selected institutions by time period, selected institutions analysis *The paintings Purchases for decoration Italy, Netherlands, UK Pre-20th century Spain, France collection began Austria, Belgium, Canada, 1910-29 Colombia, Greece, Netherlands with purchases. The Colombia*, ECB, Germany, musical instruments Purchases for collection Greece, Hungary, Trinidad 1930-49 Canada, Italy, Turkey and Botero and Tobago, Turkey Costa Rica, Germany, Iran, collections began as 1950-69 donations Commissioned art Spain South Africa, Trinidad & Tobago Gift/donations Canada, Colombia*, US Austria, Bahamas, Belgium, ** The first paintings 1970-89 were inherited as part Inherited/Transferred Brazil, Philippines, US France **, Iran of the governors’ first from other institution 1990-2009 ECB, Morocco residence building Foreclosures Brazil post-2010 Hungary ‘We’re looking to engage the central bank’s creation in 1960. experience during the Great with society at large. As It is difficult to identify why exactly Depression, when it seized 82 pieces public institutions, we have central banks started collecting art. from Riccardo Gualino, an indebted As noted by Paola Della Pergola in her Turin industrialist and financier. a sense of commitment to foreword to the catalogue of the Banca This includes a collection of 17th the arts and culture. We d’Italia’s Palazzo Koch collection, century tapestries, the third century also feel that it is crucial ‘The history of art collecting Sarcophagus of Ienos, pieces by to incorporate art into highlights a common aspect of the Claude Monet and Pietro Canonica, working life, because that beginning of the all-significant art as well as ancient oriental art. These collections: the choices of pieces of form the basis of the bank’s collection brings our colleagues, the initial collection were absolutely at its head office at Palazzo Koch. Its guests and visitors face by chance.’ Still, most central bank collection overall constitutes around to face with artistic art collection origins can broadly 3,000 items including paintings, expression. Over the years, be grouped into the categories of sculptures, rugs, tapestries and other collecting and exhibiting purchases and commissioned art (for works of decorative art. Colombia’s decoration or for the creation of a Museo Botero includes a collection art has become part of our collection), or through inheritance of 208 pieces that the artist donated institutions’ DNA’. and gifts/donations (Figure 1). The to the central bank in 2000, 123 of Jens Weidmann, president, Deutsche Banco Central do Brasil is an outlier which are his works, with a further 85 Bundesbank in this regard. It received its first set from his personal collection including of paintings, 13 panels by Candido pieces by Pablo Picasso, Joan Miró, Portinari, from the failing Halles Edgar Degas and Pierre-Auguste Investment Bank in 1974. That same Renoir. year, the Áurea investment banks failed and their art went to the BCB. Accessibility, art and technology Today, more than 90% of the central Most central banks in our sample bank’s art collection originates from operate a museum, generally these two episodes. exhibiting the history of money, as The Banca d’Italia had a similar well as the history of the central 2. Stand-out items Pictured L–R: Darya-i-Nur or Sea of light, the world’s largest pink diamond. Central Bank of Iran Violins crafted by Antonio Stradivari. Oesterreichische Nationalbank Yuan or Ming Dynasty ‘The Buddha Shakyamuni in Meditation’ in gold lacquer. Banca d’Italia. Picture courtesy Banca d’Italia Golden ‘Bat-Man’. Banco de la Republica (Colombia). Picture: Clark M. Rodríguez, courtesy The Museum of Gold, Banco de la Republica OMFIF.ORG CENTRAL BANK ART COLLECTIONS 145 bank and information on central 3. Rural landscape bank operations. With few exceptions at sunset. (Colombia is one), the art collections Claude Monet are not on display at a museum but c.1863-64 are scattered throughout the building Picture courtesy: to decorate offices. For security Banca d’Italia reasons, central banks are usually off limits to the public. This may be gradually changing. For example, De Nederlandsche Bank has moved its gold safe to Haarlem to make its main building in Amsterdam easier for the public to access. Most people never have the opportunity to see the inside of a central bank. Some central banks offer other ways for people to see ‘The BSP ensures that Rica hosted an exhibition of 100 their art collections when this is not outstanding examples engravings by Picasso, on tour from possible physically. The European Spain’s Instituto Official de Crédito. Central Bank has set up the ECB Art of Filipino genius in its In April-June, the Banco de Portugal app, which allows users to explore its gold, art, and numismatic hosted an exhibition honouring art collection.