Examine individual changes

'{{redirect|English bank|banking in England|Banking in the United Kingdom |the corpus linguistics project|Bank of English}} {{short description|Central bank of the United Kingdom}} {{Infobox Central bank |name = Governor and Company of the Bank of England |image_1 = Bank of England.svg |image_width_1 = 150px |image_title_1 = |image_2 = |image_title_2 = |headquarters = [[Threadneedle Street]]<br />[[London]], [[EC postcode area|EC2]]<br />England, United Kingdom |coordinates = {{coords|51.5142|-0.0885|display=it}} |established = {{Start date and age|df=yes|1694|07|27}} |president = [[Mark Carney]] (since 2013) |leader_title = [[Governor of the Bank of England|Governor]] |bank_of = United Kingdom |currency = [[Pound sterling]] |currency_iso = GBP |borrowing_rate = 0.75%<ref name=BOEaug2016>{{cite web |url=https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2018/august-2018 |title=Monetary Policy Committee voted unanimously to raise Bank Rate to 0.75% |author=Bank of England |authorlink=Bank of England |date=2 August 2018 |accessdate=2 August 2018 |archive-url=https://web.archive.org/web/20180802193039/https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2018/august-2018 |archive-date=2 August 2018 |url-status=dead }}</ref> |website = {{url|https://www.bankofengland.co.uk}} |footnotes = }} The '''Bank of England''' is the [[central bank]] of the [[United Kingdom]] and the model on which most modern central banks have been based. Established in 1694 to act as the [[Kingdom of England|English Government]]'s banker, and still one of the bankers for the [[Government of the United Kingdom]], it is the [[List of oldest banks in continuous operation|world's eighth-oldest bank]]. It was privately owned by stockholders from its foundation in 1694 until it was nationalised in 1946.<ref>{{cite web|url=http://hansard.millbanksystems.com/commons/1945/oct/29/bank-of-england-bill |title=House of Commons Debate 29th October 1945, Second Reading of the Bank of England Bill |publisher=Hansard.millbanksystems.com |date= |accessdate=12 October 2012}}</ref><ref>{{cite web|url=https://www.bankofengland.co.uk/quarterly-bulletin/1998/q2/the-bank-of-england-act |title=Bank of England Act 1946 |date= |accessdate=19 November 2019}}</ref> The Bank became an independent public organisation in 1998, wholly owned by the [[Treasury Solicitor]] on behalf of the government,<ref name='boe-foi'>{{cite web|url=http://www.bankofengland.co.uk/publications/Pages/foi/disc091106.aspx|publisher=Bank of England|title=Freedom of Information – disclosures|accessdate=29 September 2013}}</ref> but with independence in setting monetary policy.<ref>1 June 1998, [http://www.legislation.gov.uk/uksi/1998/1120/article/2/made The Bank of England Act 1998 (Commencement) Order 1998] s 2</ref><ref>{{cite news|url=http://news.bbc.co.uk/onthisday/hi/dates/stories/may/6/newsid_3806000/3806313.stm|title=BBC On This Day - 6-1997: Brown sets Bank of England free|accessdate=14 September 2014|date=6 May 1997}}</ref><ref>{{cite web|url=http://www.bankofengland.co.uk/about/index.htm|title=Bank of England - About the Bank|accessdate=14 September 2014 |archive-url=https://web.archive.org/web/20141231015732/http://www.bankofengland.co.uk/about/Pages/default.aspx |archive-date=2014-12-31}}</ref><ref>{{cite web|url=http://www.bankofengland.co.uk/about/parliament/index.htm |title=Bank of England: Relationship with Parliament |accessdate=14 September 2014 |url-status=dead |archiveurl=https://web.archive.org/web/20090708200732/https://www.bankofengland.co.uk/about/parliament/index.htm |archivedate=8 July 2009 |df=dmy }}</ref> The Bank is one of eight banks authorised to issue [[Banknotes of the pound sterling|banknotes in the United Kingdom]], has a monopoly on the issue of banknotes in [[England and Wales]] and regulates the issue of banknotes by commercial banks in [[Scotland]] and [[Northern Ireland]].<ref name=scot-ni>{{cite web|title=The Bank of England's Role in Regulating the Issue of Scottish and Northern Ireland Banknotes|url=https://www.bankofengland.co.uk/banknotes/scottish-and-northern-ireland-banknotes|website=Bank of England website|accessdate=18 November 2019}}</ref> The Bank's [[Monetary Policy Committee]] has a devolved responsibility for managing [[monetary policy]]. The Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but such orders must be endorsed by Parliament within 28 days.<ref>{{cite web|url=http://www.opsi.gov.uk/acts/acts1998/ukpga_19980011_en_3#pt2-pb4-l1g19 |title=Act of Parliament gives devolved responsibility to the MPC with reserve powers for the Treasury |publisher=Opsi.gov.uk |date= |accessdate=10 May 2010}}</ref> The Bank's [[Financial Policy Committee]] held its first meeting in June 2011 as a [[macroprudential regulation|macroprudential regulator]] to oversee regulation of the UK's financial sector. The Bank's headquarters have been in London's main financial district, the [[City of London]], on [[Threadneedle Street]], since 1734. It is sometimes known as The Old Lady of Threadneedle Street, a name taken from a satirical cartoon by [[James Gillray]] in 1797.<ref>Bank of England, "[http://edu.bankofengland.co.uk/knowledgebank/who-is-the-old-lady-of-threadneedle-street/ Who is The Old Lady of Threadneedle Street?] {{Webarchive|url=https://web.archive.org/web/20180115185243/http://edu.bankofengland.co.uk/knowledgebank/who-is-the-old-lady-of-threadneedle-street/ |date=15 January 2018 }}". Accessed 15 January 2018.</ref> The road junction outside is known as [[Bank junction]]. As a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services such as exchanging superseded bank notes.<ref name="Exchanging for an individual at the Bank of England counter">{{cite web |title=Exchanging old banknotes | url=https://www.bankofengland.co.uk/banknotes/exchanging-old-banknotes | publisher=Bank of England |accessdate=19 October 2019}}</ref> Until 2016, the bank provided personal banking services as a privilege for employees.<ref name="Bank of England to close personal banking service for employees">{{cite web |last1=Topham |first1=Gwyn |title=Bank of England to close personal banking service for employees |url=https://www.theguardian.com/business/2016/jul/17/bank-of-england-closing-personal-banking-service-employees |website=The Guardian |accessdate=8 November 2016}}</ref> ==History== ===Founding=== [[File:Bank of England Charter sealing 1694.jpg|thumb|left|''Sealing of the Bank of England Charter (1694)'', by Lady Jane Lindsay, 1905]] [[Kingdom of England|England]]'s crushing defeat by [[Kingdom of France|France]], the dominant naval power, in naval engagements culminating in the 1690 [[Battle of Beachy Head (1690)|Battle of Beachy Head]], became the catalyst for England rebuilding itself as a global power. England had no choice but to build a powerful navy.{{Citation needed|date=November 2019}} No public funds were available, and the credit of [[William III of England|William III]]'s government was so low in London that it was impossible for it to borrow the £1,200,000 (at 8% per annum) that the government wanted. To induce subscription to the loan, the subscribers were to be [[Incorporation (business)|incorporated]] by the name of the Governor and Company of the Bank of England. The Bank was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue bank notes.<ref>{{cite book |last=Bagehot |first=Walter |title=Lombard Street : a description of the money market |year=1873 |publisher=Henry S. King and Co. |location=London |url=http://www.gutenberg.org/ebooks/4359}}</ref> The lenders would give the government cash (bullion) and issue notes against the government bonds, which can be lent again. The £1.2 million was raised in 12 days; half of this was used to rebuild the navy. As a side effect, the huge industrial effort needed, including establishing [[ironworks]] to make more nails and advances{{clarify|date=February 2016}} in agriculture feeding the quadrupled strength of the navy, started to transform the economy. This helped the new [[Kingdom of Great Britain]] – [[Acts of Union 1707|England and Scotland were formally united in 1707]] – to become powerful. The power of the navy made Britain the dominant world power in the late 18th and early 19th centuries.<ref>{{cite web|url=https://www.youtube.com/watch?v=-jqDMmWhPHA |title=BBC: Empire of the Seas programme |publisher=webcache.googleusercontent.com |date= |accessdate=10 May 2010 }}{{dead link|date=October 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The establishment of the bank was devised{{clarify|date=February 2016}} by [[Charles Montagu, 1st Earl of Halifax]], in 1694. The plan of 1691, which had been proposed by [[William Paterson (banker)|William Paterson]] three years before, had not then been acted upon.<ref>{{cite book |url=https://books.google.com/?id=EkUTaZofJYEC&dq=British+Parliamentary+reports+on+international+finance&printsec=frontcover#PPA25,M1 |title=Committee of Finance and Industry 1931 (Macmillan Report) description of the founding of Bank of England |date= 1 January 1979 |accessdate=10 May 2010 |isbn=9780405112126}} "Its foundation in 1694 arose out the difficulties of the Government of the day in securing subscriptions to State loans. Its primary purpose was to raise and lend money to the State and in consideration of this service it received under its Charter and various Act of Parliament, certain privileges of issuing bank notes. The corporation commenced, with an assured life of twelve years after which the Government had the right to annul its Charter on giving one year's notice. '&#39;'Subsequent extensions of this period coincided generally with the grant of additional loans to the State'&#39;'"</ref> 58 years earlier, in 1636, Financier to the king, [[Philip Burlamachi]], had proposed exactly the same idea in a letter addressed to [[Sir Francis Windebank]].<ref>Calendar Of State Papers Domestic Series p. 73 1636-1637</ref> He proposed a loan of £1.2 million to the government; in return the subscribers would be incorporated as '''The Governor and Company of the Bank of England''' with long-term banking privileges including the issue of notes. The [[royal charter]] was granted on 27 July through the passage of the [[Tonnage Act 1694]].<ref>H. Roseveare, /The Financial Revolution 1660–1760/ (1991, Longman), pp. 34</ref> Public finances were in such dire condition at the time<ref>{{cite book |url=https://books.google.com/?id=EdwsCgAAQBAJ&pg=PA63&lpg=PA63&dq=dire+condition+of+public+finance+1694#v=onepage&q=dire%20condition%20of%20public%20finance%201694&f=false |title=The Encyclopedia of the Industrial Revolution in World History |last=III |first=Kenneth E. Hendrickson |date=2014-11-25 |publisher=Rowman & Littlefield |isbn=9780810888883 |language=en}}</ref> that the terms of the loan were that it was to be serviced at a rate of 8% per annum, and there was also a service charge of £4,000 per annum for the management of the loan. The first governor was Sir [[John Houblon]], who is depicted in the [[Bank of England £50 note|£50 note]] issued in 1994. The charter was renewed in 1742, 1764, and 1781. ===18th century=== [[File:The Old Lady of Threadneedle St.png|thumb|right|Satirical cartoon protesting against the introduction of paper money, by [[James Gillray]], 1797. The "Old Lady of Threadneedle St" (the Bank personified) is ravished by [[William Pitt the Younger]].]] The Bank's original home was in Walbrook, a street in the City of London, where during reconstruction in 1954 archaeologists found the remains of a Roman [[Temple of Mithras, London|temple of Mithras]] (Mithras is&nbsp;– rather fittingly&nbsp;– said to have been worshipped as, amongst other things, the God of Contracts);<ref>{{Cite web|url=http://www.iranicaonline.org/articles/mithra-i|title=MITHRA i. MITRA IN OLD INDIAN – Encyclopaedia Iranica|last=|first=|date=|website=www.iranicaonline.org|publisher=|access-date=2016-09-20}}</ref> the Mithraeum ruins are perhaps the most famous of all 20th-century Roman discoveries in the City of London and can be viewed by the public. The Bank moved to its current location in Threadneedle Street in 1734,<ref>{{cite web|title=Bank of England: Buildings and Architects|url=http://www.bankofengland.co.uk/about/Pages/history/buildings.aspx#|publisher=The Bank of England|accessdate=31 July 2015|archive-url=https://web.archive.org/web/20150910182914/http://www.bankofengland.co.uk/about/Pages/history/buildings.aspx|archive-date=10 September 2015|url-status=dead|df=dmy-all}}</ref> and thereafter slowly acquired neighbouring land to create the site necessary for erecting the Bank's original home at this location, under the direction of its chief architect Sir [[John Soane]], between 1790 and 1827. (Sir [[Herbert Baker]]'s rebuilding of the Bank in the first half of the 20th century, demolishing most of Soane's masterpiece, was described by architectural historian [[Nikolaus Pevsner]] as "the greatest architectural crime, in the [[City of London]], of the twentieth century".) When the idea and reality of the [[United Kingdom national debt|national debt]] came about during the 18th century, this was also managed by the Bank. During the [[American war of independence]], business for the Bank was so good that [[George Washington]] remained a shareholder throughout the period.<ref name="veconomist" >{{cite news|author=|title=The many, often competing, jobs of the Bank of England|url=https://www.economist.com/news/books-and-arts/21728876-new-book-shows-how-hard-it-central-bankers-please-all-masters-many-often|work=[[The Economist]]|date=16 September 2017}}</ref> By the [[charter]] renewal in 1781 it was also the bankers' bank&nbsp;– keeping enough gold to pay its notes on demand until 26 February 1797 when [[French Revolution|war]] had so diminished [[gold reserves]] that – following an invasion scare caused by the [[Battle of Fishguard]] days earlier – the government prohibited the Bank from paying out in gold by the passing of the [[Bank Restriction Act 1797]]. This prohibition lasted until 1821. ===19th century=== [[File:Bank of England 1876.JPG|thumb|Bank Stock of the Bank of England, issued 25. January 1876]] [[File:Bank of England (15479206598).jpg|thumb|Bank of England (15479206598)]] The 1844 [[Bank Charter Act]] tied the issue of notes to the gold reserves and gave the Bank sole rights with regard to the issue of banknotes. Private banks that had previously had that right retained it, provided that their headquarters were outside London and that they deposited security against the notes that they issued. A few English banks continued to issue their own notes until the last of them was taken over in the 1930s. Scottish and Northern Irish private banks still have that right. The bank acted as [[lender of last resort]] for the first time in the [[panic of 1866]].<ref>{{cite web | url= http://www.voxeu.org/article/lender-last-resort-global-currency-sterling-lessons-dollar| title= From lender of last resort to global currency? Sterling lessons for the US dollar| publisher=VOX| date=23 July 2011| accessdate=8 May 2014}}</ref> The last private bank in England to issue its own notes was Thomas Fox's [[Fox, Fowler and Company]] bank in [[Wellington, Somerset|Wellington]], which rapidly expanded, until it merged with Lloyds Bank in 1927. They were legal tender until 1964. There are nine notes left in circulation; one is housed at [[Tone Dale House]] Wellington. ===20th century=== [[File:Bank of England Building, London, UK - Diliff.jpg|thumb|The main Bank of England façade]] Britain remained on the [[gold standard]] until 1931, when the gold and foreign exchange reserves were transferred to the [[HM Treasury|Treasury]]; however, they continued to be managed by the Bank. During the governorship of [[Montagu Norman]], from 1920 to 1944, the Bank made deliberate efforts to move away from [[commercial bank]]ing and become a central bank. In 1946, shortly after the end of Norman's tenure, [[Bank of England Act 1946|the bank was nationalised]] by the Labour government. The Bank pursued the multiple goals of Keynesian economics after 1945, especially "easy money" and low interest rates to support aggregate demand. It tried to keep a fixed exchange rate, and attempted to deal with inflation and sterling weakness by credit and exchange controls.<ref>John Fforde, ''The Role of the Bank of England, 1941–1958'' (1992)</ref> In 1977, the Bank set up a wholly owned subsidiary called [[Bank of England Nominees|Bank of England Nominees Limited]] (BOEN), a private limited company, with two of its hundred £1 shares issued. According to its Memorandum & Articles of Association, its objectives are: "To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them...." Bank of England Nominees Limited was granted an exemption by [[Edmund Dell]], Secretary of State for Trade, from the disclosure requirements under Section 27(9) of the Companies Act 1976, because "it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders." The Bank of England is also protected by its [[royal charter]] status, and the [[Official Secrets Act]].<ref>{{cite news |url=https://moneyweek.com/27-july-1694-the-bank-of-england-is-created-by-royal-charter/|title=27 July 1694: the Bank of England is created by Royal Charter |date=2015-07-27|work=MoneyWeek|access-date=2018-01-02 |language=en-GB}}</ref> BOEN is a vehicle for governments and heads of state to invest in UK companies (subject to approval from the Secretary of State), providing they undertake "not to influence the affairs of the company".<ref>{{cite web |title=Proceedings of the House of Commons, 21st April 1977 |url=http://hansard.millbanksystems.com/written_answers/1977/apr/21/shareholdings-disclosure}}</ref><ref>{{cite news |title=Guardian article on Queen's private wealth, 30th May 2002 |url=https://www.theguardian.com/uk/2002/may/30/jubilee.monarchy2 | location=London | work=The Guardian |date=30 May 2002}}</ref> BOEN is no longer exempt from company law disclosure requirements.<ref>{{cite web |title=Proceedings of the House of Lords, 26th April 2011 |url=http://services.parliament.uk/hansard/Lords/bydate/20110426/writtenanswers/part021.html}}</ref> Although a [[dormant company]],<ref>{{cite web |title=Bank of England Nominees Company Accounts |url=https://www.scribd.com/doc/56089866/BANK-OF-ENGLAND-NOMINEES-LIMITED-Company-accounts-from-Level-Business}}</ref> dormancy does not preclude a company actively operating as a nominee shareholder.<ref>{{cite web |title=Example of a Dormant Nominee Company |url=http://www.pilling.com/Nominee-Service.htm |access-date=12 September 2011 |archive-url=https://web.archive.org/web/20120425051438/http://www.pilling.com/Nominee-Service.htm |archive-date=25 April 2012 |url-status=dead }}</ref> BOEN has two shareholders: the Bank of England, and the Secretary of the Bank of England.<ref>{{cite web |title=Freedom of Information Act response regarding Bank of England Nominees Limited |url=http://www.whatdotheyknow.com/request/28738/response/74019/attach/2/D.pdf}}</ref> The [[reserve requirement]] for banks to hold a minimum fixed proportion of their deposits as reserves at the Bank of England was abolished in 1981: see [[reserve requirement#United Kingdom|reserve requirement]] for more details. The contemporary transition from Keynesian economics to Chicago economics was analysed by [[Nicholas Kaldor]] in ''The Scourge of Monetarism''<ref>{{cite book|url=https://books.google.com/books/about/The_Scourge_of_Monetarism.html?id=cj6wAAAAIAAJ |title=The Scourge of Monetarism |publisher=Oxford University Press |date= 1 Jan 1982|accessdate=19 August 2016|isbn=9780198771876}}</ref> On 6 May 1997, following the [[1997 United Kingdom general election|1997 general election]] that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, [[Gordon Brown]], that the Bank would be granted operational independence over monetary policy.<ref>{{cite journal |last1 = Sattler |first1 = Thomas |last2 = Brandt |first2 = Patrick T. |last3 = Freeman |first3 = John R. |title = Democratic accountability in open economies |journal = [[Quarterly Journal of Political Science]] |volume = 5 |issue = 1 |pages = 71–97 |doi = 10.1561/100.00009031 |date = April 2010 |ref = harv |citeseerx = 10.1.1.503.6174}}</ref> Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998), the Bank's [[Monetary Policy Committee]] was given sole responsibility for setting interest rates to meet the Government's [[Retail Prices Index (United Kingdom)|Retail Prices Index]] (RPI) inflation target of 2.5%.<ref>{{cite web|title=Key Monetary Policy Dates Since 1990 |publisher=Bank of England |accessdate=20 September 2007 |url=http://www.bankofengland.co.uk/monetarypolicy/history.htm |archiveurl=https://web.archive.org/web/20070629143630/http://www.bankofengland.co.uk/monetarypolicy/history.htm |archivedate=29 June 2007 |url-status=live |df=dmy }}</ref> The target has changed to 2% since the [[Consumer Price Index (United Kingdom)|Consumer Price Index]] (CPI) replaced the Retail Prices Index as the Treasury's inflation index.<ref>{{cite web |title=Remit of the Monetary Policy Committee of the Bank of England and the New Inflation Target |publisher=HM Treasury |accessdate=20 September 2007 |date=10 December 2003 |url=http://www.bankofengland.co.uk/monetarypolicy/pdf/chancellorletter031210.pdf| archiveurl= https://web.archive.org/web/20070926052337/http://www.bankofengland.co.uk/monetarypolicy/pdf/chancellorletter031210.pdf| archivedate= 26 September 2007 | url-status= live}}</ref> If inflation overshoots or undershoots the target by more than 1%, the Governor has to write a letter to the [[Chancellor of the Exchequer]] explaining why, and how he will remedy the situation.<ref>{{cite web|title=Monetary Policy Framework|url=http://www.bankofengland.co.uk/monetarypolicy/Pages/framework/framework.aspx|publisher=Bank of England|accessdate=31 October 2016}}</ref> The success of [[inflation target]]ing in the United Kingdom has been attributed to the Bank's focus on transparency.<ref name=IMF01>{{cite web|title=Targeting Inflation: The United Kingdom in Retrospect|url=https://www.imf.org/external/pubs/ft/seminar/2000/targets/strach7.pdf|publisher=IMF|accessdate=31 October 2016}}</ref> The Bank of England has been a leader in producing innovative ways of communicating information to the public, especially through its Inflation Report, which have been emulated by many other central banks.<ref name=NBER01>{{cite web|title=Inflation Targeting Has Been A Successful Monetary Policy Strategy|url=https://www.nber.org/digest/apr98/w6126.html|publisher=[[National Bureau of Economic Research]]|accessdate=31 October 2016}}</ref> Independent central banks that adopt an inflation target are known as [[Milton Friedman|Friedmanite]] central banks. Inflation targets combined with central bank independence have been characterised as a "starve the beast" strategy creating a lack of money in the public sector. This change in Labour's politics was described by [[Robert Skidelsky|Skidelsky]] in ''The Return of the Master''<ref>{{cite book|url=https://books.google.com/books?isbn=1610390032 |title=The Return of the Master |publisher=Public Affairs |date= 2009|accessdate=19 August 2016|isbn=978-1610390033}}</ref> as a mistake and as an adoption of the [[Rational expectations|Rational Expectations Hypothesis]] as promulgated by [[Alan Walters|Walters]]<ref>{{Cite journal | last = Walters | first = A.A. | title = Consistent expectations, distributed lags and the quantity theory | journal = [[The Economic Journal]] | volume = 81 | issue = 322 | pages = 273–281 | doi = 10.2307/2230071 | jstor = 2230071 | date = June 1971 | ref = harv }}</ref> The handing over of monetary policy to the Bank had been a key plank of the [[Liberal Democrats (UK)|Liberal Democrats]]' economic policy since the [[1992 United Kingdom general election|1992 general election]].<ref>Liberal Democrat election manifesto, 1992</ref> Conservative MP [[Nicholas Budgen]] had also proposed this as a [[private member's bill]] in 1996, but the bill failed as it had the support of neither the government nor the opposition. ===21st century=== [[Mark Carney]] assumed the post of [[Governor of the Bank of England]] on 1 July 2013. He succeeded [[Mervyn King, Baron King of Lothbury|Mervyn King]], who took over on 30 June 2003. Carney, a Canadian, will serve an initial five-year term rather than the typical eight. He became the first Governor not to be a UK citizen, but has since been granted citizenship.<ref>{{cite news | url=https://www.bbc.co.uk/news/business-20501990 | title=Mark Carney named new Bank of England governor | publisher=BBC | date=26 November 2012 | accessdate=26 November 2012}}</ref> At Government request, his term was extended to 2019, then again to 2020.<ref>{{Cite news | url=https://www.bbc.co.uk/news/business-45482461 |title = Carney to stay at Bank of England until 2020|work = BBC News|date = 2018-09-11}}</ref> As of January 2014, the Bank also has four [[Deputy Governor of the Bank of England|Deputy Governors]]. BOEN was dissolved, following liquidation, in July 2017.<ref>{{Cite web | url=https://beta.companieshouse.gov.uk/company/01307478/filing-history | title=BANK OF ENGLAND NOMINEES LIMITED - Filing history (free information from Companies House)}}</ref> ==Functions == There are two main areas which are tackled by the Bank to ensure it carries out these functions efficiently:<ref name="Report2011">{{cite web |url=http://www.bankofengland.co.uk/publications/annualreport/2011/corepurposes2011.pdf |title=The Bank's core purposes |website=Annual Report 2011 |publisher=Bank of England |accessdate=24 October 2011}}</ref> [[File:Bank of England.jpg|right|thumb|Bank House, the Bank of England offices on King Street in [[Leeds]].]] ===Monetary stability=== {{more citations needed section|date=July 2017}}<!--three consecutive paragraphs without citations--> Note: It is important to note that "monetary" and "financial" are synonyms. Stable prices and confidence in the currency are the two main criteria for monetary stability. Stable prices are maintained by seeking to ensure that price increases meet the Government's inflation target. The Bank aims to meet this target by adjusting the base [[interest rate]], which is decided by the [[Monetary Policy Committee]], and through its communications strategy, such as publishing [[yield curve]]s.<ref>Bank of England – Yield Curves by [[Internet Archive]].[https://web.archive.org/web/20110421034658/http://www.bankofengland.co.uk/statistics/yieldcurve/]</ref> :Maintaining financial stability involves protecting against threats to the whole financial system. Threats are detected by the Bank's surveillance and [[market intelligence]] functions. The threats are then dealt with through financial and other operations, both at home and abroad. In exceptional circumstances, the Bank may act as the [[lender of last resort]] by extending credit when no other institution will. The Bank works together with other institutions to secure both monetary and financial stability, including: * [[HM Treasury]], the Government department responsible for financial and economic policy; and * Other central banks and international organisations, with the aim of improving the international financial system. The 1997 [[memorandum of understanding]] describes the terms under which the Bank, the Treasury and the FSA work toward the common aim of increased financial stability.<ref>{{cite web|url=http://www.bankofengland.co.uk/financialstability/mou.pdf |title=Memorandum of Understanding between the HM Treasury, the Bank of England and the Financial Services Authority |accessdate=10 May 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20101203101708/http://www.bankofengland.co.uk/financialstability/mou.pdf |archivedate=3 December 2010 |df=dmy }}</ref> In 2010 the incoming Chancellor announced his intention to merge the FSA back into the Bank. As of 2012, the current director for financial stability is [[Andy Haldane]].<ref name = "OccupyCorrect">{{cite news |url= http://www.ft.com/cms/s/0/09b53a94-2271-11e2-8edf-00144feabdc0.html |title= BoE's Haldane says Occupy was right |work= [[Financial Times]] |author= Hannah Kuchler and Claire Jones |date = 30 October 2012 |accessdate=30 October 2012 }} {{registration required}}</ref> The Bank acts as the government's banker, and it maintains the government's [[Consolidated Fund]] account. It also manages the country's [[foreign exchange market|foreign exchange]] and [[gold reserves]]. The Bank also acts as the bankers' bank, especially in its capacity as a lender of last resort. The Bank has a monopoly on the issue of [[banknote]]s in England and Wales. Scottish and Northern Irish banks retain the right to issue their own banknotes, but they must be backed one for one with deposits at the Bank, excepting a few million pounds representing the value of notes they had in circulation in 1845. The Bank decided to sell its banknote printing operations to [[De La Rue]] in December 2002, under the advice of Close Brothers Corporate Finance Ltd.<ref>{{cite web|url=http://www.bankofengland.co.uk/publications/news/2003/041.htm|publisher=Bank of England|title=Sale of Bank Note Printing|accessdate=10 June 2006}}</ref> Since 1998, the [[Monetary Policy Committee]] (MPC) has had the responsibility for setting the official interest rate. However, with the decision to grant the Bank operational independence, responsibility for government debt management was transferred in 1998 to the new [[Debt Management Office]], which also took over government cash management in 2000. [[Computershare]] took over as the registrar for UK Government bonds ([[gilt-edged security|gilt-edged securities]] or ''gilts'') from the Bank at the end of 2004. The Bank used to be responsible for the regulation and supervision of the banking and insurance industries. This responsibility was transferred to the Financial Services Authority in June 1998, but after the financial crises in 2008 new banking legislation transferred the responsibility for regulation and supervision of the banking and insurance industries back to the Bank. In 2011 the interim [[Financial Policy Committee]] (FPC) was created as a mirror committee to the MPC to spearhead the Bank's new mandate on financial stability. The FPC is responsible for macro prudential regulation of all UK banks and insurance companies. To help maintain economic stability, the Bank attempts to broaden understanding of its role, both through regular speeches and publications by senior Bank figures, a semiannual Financial Stability Report,<ref>[http://www.bankofengland.co.uk/publications/fsr/ ] {{webarchive |url=https://web.archive.org/web/20120211185350/http://www.bankofengland.co.uk/publications/fsr/ |date=11 February 2012 }}</ref> and through a wider education strategy aimed at the general public. It currently maintains [[Bank of England Museum|a free museum]] and ran the [[Target Two Point Zero]] competition for A-level students, closing in 2017.<ref>{{cite web|url=http://www.bankofengland.co.uk/education/index.htm|publisher=Bank of England|title=Bank of England: Education|accessdate=28 March 2007| archiveurl= https://web.archive.org/web/20070329072231/http://www.bankofengland.co.uk/education/index.htm| archivedate= 29 March 2007 | url-status= live}}</ref> ===Asset purchase facility {{anchor|APF|Asset purchase facility}}=== The Bank has operated, since January 2009, an Asset Purchase Facility (APF) to buy "high-quality assets financed by the issue of Treasury bills and the [[UK Debt Management Office|DMO]]'s cash management operations" and thereby improve liquidity in the credit markets.<ref name="APF">{{cite web|url=http://www.bankofengland.co.uk/markets/apf/index.htm|publisher=Bank of England|title=Asset Purchase Facility|accessdate=12 August 2010| archiveurl= https://web.archive.org/web/20100726113941/http://www.bankofengland.co.uk/markets/apf/index.htm| archivedate= 26 July 2010 | url-status= live}}</ref> It has, since March 2009, also provided the mechanism by which the Bank's policy of [[quantitative easing]] (QE) is achieved, under the auspices of the MPC. Along with the managing the £200&nbsp;billion of QE funds, the APF continues to operate its corporate facilities. Both are undertaken by a subsidiary company of the Bank of England, the Bank of England Asset Purchase Facility Fund Limited (BEAPFF).<ref name="APF"/> ==Banknote issues== {{Main|Bank of England note issues}} The Bank has issued banknotes since 1694. Notes were originally hand-written; although they were partially printed from 1725 onwards, cashiers still had to sign each note and make them payable to someone. Notes were fully printed from 1855. Until 1928 all notes were "White Notes", printed in black and with a blank reverse. In the 18th and 19th centuries White Notes were issued in £1 and £2 denominations. During the 20th century White Notes were issued in denominations between £5 and £1000. Until the mid-19th century, commercial banks were allowed to issue their own banknotes, and notes issued by provincial banking companies were commonly in circulation.<ref>{{cite web|title=£2 note issued by Evans, Jones, Davies & Co|url=https://www.britishmuseum.org/explore/highlights/highlight_objects/cm/others/%c2%a32_note_issued_by_evans,_jones.aspx|publisher=British Museum|accessdate=31 October 2011|url-status=dead|archiveurl=https://web.archive.org/web/20120118104053/http://www.britishmuseum.org/explore/highlights/highlight_objects/cm/others/%c2%a32_note_issued_by_evans,_jones.aspx|archivedate=18 January 2012|df=dmy-all}}</ref> The [[Bank Charter Act 1844]] began the process of restricting note issue to the Bank; new banks were prohibited from issuing their own banknotes and existing note-issuing banks were not permitted to expand their issue. As provincial banking companies merged to form larger banks, they lost their right to issue notes, and the English private banknote eventually disappeared, leaving the Bank with a monopoly of note issue in England and Wales. The last private bank to issue its own banknotes in England and Wales was [[Fox, Fowler and Company]] in 1921.<ref name=banknote-history>{{cite web|title=A brief history of banknotes|url=http://www.bankofengland.co.uk/banknotes/about/scottish_northernireland.htm|website=Bank of England website|accessdate=31 October 2011}}</ref><ref name=fox-note>{{cite web|title=Fox, Fowler & Co. £5 note|url=https://www.britishmuseum.org/explore/highlights/highlight_objects/cm/f/fox,_fowler__co_%C2%A35_not.aspx|publisher=British Museum|accessdate=31 October 2011|url-status=dead|archiveurl=https://web.archive.org/web/20111002040119/http://www.britishmuseum.org/explore/highlights/highlight_objects/cm/f/fox,_fowler__co_%c2%a35_not.aspx|archivedate=2 October 2011|df=dmy-all}}</ref> However, the limitations of the 1844 Act only affected banks in England and Wales, and today three commercial banks in Scotland and four in Northern Ireland continue to issue their own [[Banknotes of the pound sterling|banknotes]], regulated by the Bank.<ref name=scot-ni/> At the start of the [[First World War]], the [[Currency and Bank Notes Act 1914]] was passed, which granted temporary powers to [[HM Treasury]] for issuing banknotes to the values of £1 and 10/- (ten shillings). Treasury notes had full legal tender status and were not convertible into gold through the Bank; they replaced the gold coin in circulation to prevent a run on sterling and to enable raw material purchases for armament production. These notes featured an image of [[George V|King George V]] (Bank of England notes did not begin to display an image of the monarch until 1960). The wording on each note was: {{quotation|''UNITED KINGDOM OF GREAT BRITAIN AND IRELAND – Currency notes are Legal Tender for the payment of any amount – Issued by the Lords Commissioners of His Majesty's Treasury under the Authority of Act of Parliament (4 & 5 Geo. V c.14)''.}} Treasury notes were issued until 1928, when the [[Currency and Bank Notes Act 1928]] returned note-issuing powers to the banks.<ref name="treasurynotes1"> {{cite web |url=http://homepage.ntlworld.com/trev.rh/Notes/treasury.htm |title=Treasury notes |accessdate=12 October 2007 |author=Trevor R Howard |url-status=dead |archiveurl=https://web.archive.org/web/20071205183225/http://homepage.ntlworld.com/trev.rh/Notes/treasury.htm |archivedate=5 December 2007 |df=dmy }} </ref> The Bank of England issued notes for ten [[shilling]]s and one pound for the first time on 22 November 1928. During the Second World War the German [[Operation Bernhard]] attempted to counterfeit denominations between £5 and £50, producing 500,000 notes each month in 1943. The original plan was to parachute the money into the UK in an attempt to destabilise the British economy, but it was found more useful to use the notes to pay German agents operating throughout Europe. Although most fell into [[Allies of World War II|Allied]] hands at the end of the war, forgeries frequently appeared for years afterwards, which led banknote denominations above £5 to be removed from circulation. In 2006, over £53&nbsp;million in banknotes belonging to the Bank was [[Securitas depot robbery|stolen from a depot]] in [[Tonbridge, Kent]].<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/england/kent/4756454.stm|title=Record £53m stolen in depot raid|accessdate=14 September 2014|date=27 February 2006}}</ref> Modern banknotes are printed by contract with [[De La Rue]] Currency in [[Loughton, Essex]].<ref>{{Cite web|url=http://www.bankofengland.co.uk/banknotes/pages/about/production.aspx|title=Banknote Production|last=|first=|date=|website=bankofengland.co.uk|publisher=Bank of England|archive-url=https://web.archive.org/web/20120310004155/http://www.bankofengland.co.uk/banknotes/Pages/about/production.aspx|archive-date=10 March 2012|access-date=}}</ref> ==Gold vault== The bank is custodian to the official gold reserves of the United Kingdom and around 30 other countries. The vault, beneath the [[City of London]], covers a floor space greater than that of the fifth-tallest building in the City, [[Tower 42]], and needs keys that are {{convert|3|ft|spell=in}} long to open.<ref>{{cite news| url=http://www.dailymail.co.uk/news/article-1079518/The-Big-Picture-This-vast-vault-gold-Bank-England-weather-credit-crunch.html| location=London | work=Daily Mail | first=Mike | last=Hanlon | title=The Big Picture: This vast vault of gold under the Bank of England should weather the credit crunch | date=22 October 2008}}</ref> {{As of|2016|04}}, the bank held around 400,000 bars, which is equivalent to {{convert|5134|tonne}} of gold.<ref>{{cite news| url=http://www.bbc.com/capital/story/20160419-the-city-with-248-billion-beneath-its-pavement | work=BBC | first=Pádraig | last=Belton | title=The city with $248 billion beneath its pavement | date=19 April 2016}}</ref> These gold deposits were estimated in August 2018 to have a current market value of approximately £200 billion.<ref>{{Cite web | url=http://onlygold.com/Info/Value-Of-Gold.asp | title=Value of all forms of gold}}</ref> These estimates suggest the vault could hold as much as 3% of the gold mined throughout human history.<ref>[http://www.bbc.com/capital/story/20160419-the-city-with-248-billion-beneath-its-pavement 5,134 tonnes] / [https://www.bbc.co.uk/news/magazine-21969100 171,300 tonnes] = 2.997%</ref> ==Governance of the Bank of England== ===Governors=== {{main|Governor of the Bank of England}} Following is a list of the Governors of the Bank of England since the beginning of the 20th century:<ref>{{Cite web | title = Governors of the Bank of England: A chronological list (1694 – present) | publisher = Bank of England | url = http://www.bankofengland.co.uk/about/Documents/pdfs/governors.pdf | accessdate = 17 July 2014 }}</ref> {| class="wikitable centered" !| Name !!| Period |- | [[Samuel Gladstone]] | 1899–1901 |- | [[Augustus Prevost]] | 1901–1903 |- | [[Samuel Morley, 1st Baron Hollenden|Samuel Morley]] | 1903–1905 |- | [[Alexander Falconer Wallace|Alexander Wallace]] | 1905–1907 |- | [[William Middleton Campbell|William Campbell]] | 1907–1909 |- | [[Reginald Eden Johnston]] | 1909–1911 |- | [[Alfred Clayton Cole|Alfred Cole]] | 1911–1913 |- | [[Walter Cunliffe, 1st Baron Cunliffe|Walter Cunliffe]] | 1913–1918 |- | [[Brien Cokayne, 1st Baron Cullen of Ashbourne|Brien Cokayne]] | 1918–1920 |- | [[Montagu Norman, 1st Baron Norman|Montagu Norman]] | 1920–1944 |- | [[Thomas Catto, 1st Baron Catto|Thomas Catto]] | 1944–1949 |- | [[Cameron Cobbold, 1st Baron Cobbold|Cameron Cobbold]] | 1949–1961 |- | [[Rowland Baring, 3rd Earl of Cromer|Rowland Baring (3rd Earl of Cromer)]] | 1961–1966 |- | [[Leslie O'Brien, Baron O'Brien of Lothbury|Leslie O'Brien]] | 1966–1973 |- | [[Gordon Richardson, Baron Richardson of Duntisbourne|Gordon Richardson]] | 1973–1983 |- | [[Robin Leigh-Pemberton, Baron Kingsdown|Robert Leigh-Pemberton]] | 1983–1993 |- | [[Edward George, Baron George|Edward George]] | 1993–2003 |- | [[Mervyn King, Baron King of Lothbury|Mervyn King]] | 2003–2013 |- | [[Mark Carney]] | 2013– |- |} ===Court of Directors=== The Court of Directors is a unitary board that is responsible for setting the organisation's strategy and budget and taking key decisions on resourcing and appointments. It consists of five executive members from the Bank plus up to 9 non-executive members, all of whom are appointed by the Crown. The Chancellor selects the Chairman of the Court from among one of the non-executive members. The Court is required to meet at least 7 times a year.<ref>{{cite web|url=https://www.bankofengland.co.uk/about/people/court-of-directors|title=Court of Directors|publisher= Bank of England|accessdate= 8 January 2018}}</ref> The Governor serves for a period of eight years, the Deputy Governors for five years, and the non-executive members for up to four years. {| class="wikitable centered" |+ ''Court of Directors (2019)''<ref>{{Cite web|url=http://www.bankofengland.co.uk/about/people/court-of-directors|title=Court of Directors|website=www.bankofengland.co.uk|language=en|access-date=2019-06-11}}</ref> <br /> !| Name !!| Function |- |[[Bradley Fried]] | Chairman of Court. Managing Partner of Grovepoint Capital LLP |- | Mark Carney | Governor |- | [[Ben Broadbent|Benjamin Broadbent]] | [[Deputy Governor of the Bank of England|Deputy Governor]], Monetary Policy |- | [[Jon Cunliffe|Sir Jon Cunliffe]] | Deputy Governor, Financial Stability |- | [[Sam Woods (civil servant)|Sam Woods]] | Deputy Governor, Prudential Regulation & Chief Executive of the Prudential Regulation Authority |- | [[Dave Ramsden|Sir David Ramsden]] | Deputy Governor, Markets and Banking |- |[[Anne Glover (venture capitalist)|Anne Glover]] | Chief Executive and Co-Founder of Amadeus Capital Partners |- | Diana Noble | Non-Executive Director |- |[[Dido Harding|Diana 'Dido' Harding]] | Member of the House of Lords |- | Dave Prentis | General Secretary of UNISON |- | Don Robert | Chairman, Experian plc |- |[[Dorothy Thompson (businesswoman)|Dorothy Thompson]] | Chair of Tullow Oil plc, |- |Ron Kalifa |Board Director of Worldpay and Chairman of Network International |- |[[Frances O'Grady]] |General Secretary of the British Trades Union Congress |- |Hanneke Smits |CEO of Newton Investment Management |- |} ===Other staff=== Since 2013, the Bank has had a [[chief operating officer]] (COO).<ref name="BoE - Appointment of Chief Operating Officer">{{cite web|title=News Release - Appointment of Chief Operating Officer|url=http://www.bankofengland.co.uk/publications/Pages/news/2013/080.aspx|website=Bank of England|accessdate=3 September 2015|date=18 June 2013}}</ref> {{As of|2015}}, the Bank's COO has been [[Charlotte Hogg]].<ref name="bio - Bank of England">{{cite web|title=Charlotte Hogg - Chief Operating Officer|url=http://www.bankofengland.co.uk/about/Pages/people/biographies/hogg.aspx|website=Bank of England|accessdate=26 August 2015}}</ref> {{As of|2014}}, the Bank's [[chief economist]] is [[Andy Haldane|Andrew Haldane]].<ref name="apabc2014">{{cite news | url=http://abcnews.go.com/International/wireStory/bank-england-rates-steady-26366808 | title=Bank of England Keeps Rates Steady | date=22 October 2014 | agency=Associated Press | publisher=[[ABC News]] }}</ref> == See also == {{Portal|Banks|Business and economics|Numismatics|United Kingdom}} * [[List of British currencies]] * [[Bank of England Act]] * [[Bank of England club]] * [[Coins of the pound sterling]] * [[East India Company]] shareholders * [[Financial Sanctions Unit]] * [[Fractional-reserve banking]] * [[Commonwealth banknote-issuing institutions]] * [[Bank of England Museum]] * [[Deputy Governor of the Bank of England]] * [[List of directors of the Bank of England]] ==References== {{Reflist|30em}} ==Further reading== * {{cite book|author=Brady, Robert A.|title=Crisis in Britain. Plans and Achievements of the Labour Government|url=https://books.google.com/books?id=K7QZd1pA5A8C|year=1950|publisher=University of California Press}}, on nationalisation 1945–50, pp 43–76 * Capie, Forrest. ''The Bank of England: 1950s to 1979'' (Cambridge University Press, 2010). xxviii + 890 pp.&nbsp;{{ISBN|978-0-521-19282-8}} [https://www.amazon.com/dp/052119282X/ excerpt and text search] * Clapham, J. H. ''Bank of England'' (2 vol 1944) for 1694–1914 * Fforde, John. ''The Role of the Bank of England, 1941–1958'' (1992) [https://www.amazon.com/dp/0521391393/ excerpt and text search] * Francis, John. ''History of the Bank of England: Its Times and Traditions'' [https://www.amazon.com/dp/1402168772/ excerpt and text search] * Hennessy, Elizabeth. ''A Domestic History of the Bank of England, 1930–1960'' (2008) [https://www.amazon.com/dp/0521073588/ excerpt and text search] * Kynaston, David. 2017. Till Time’s Last Sand: A History of the Bank of England, 1694-2013. Bloomsbury. *Roberts, Richard, and [[David Kynaston]]. ''The Bank of England: Money, Power and Influence 1694–1994'' (1995) * Sayers, R. S. ''The Bank of England, 1891–1944'' (1986) [https://www.amazon.com/dp/0521310229/ excerpt and text search] * [[Felix Schuster|Schuster, F.]] ''[[s:The Bank of England and the State|The Bank of England and the State]]'' * Wood, John H. ''A History of Central Banking in Great Britain and the United States'' (Cambridge University Press, 2005) ==External links== *{{Official website}} * {{PM20|FID=co/002391|TEXT=Clippings about the|NAME=}} {{Navboxes |list = {{Governors of the Bank of England}} {{London history}} {{Central Bank by country}} {{Central banks}} {{Federal Reserve System}} {{United Kingdom topics}} {{Economy of the United Kingdom}} {{Banknotes of the pound sterling}} {{Central banks of the European Union}} {{London landmarks}} }} {{Subject bar|commons=yes|commons-search=Category:Bank of England|n=yes|n-search=Category:Bank of England|wikt=yes|s=yes|s-search="Bank of England"|d=yes|d-search=Q183231}} {{Use dmy dates|date=February 2015}} {{EngvarB|date=August 2014}} {{Authority control}} {{DEFAULTSORT:Bank Of England}} [[Category:Bank of England| ]] [[Category:1694 establishments in England]] [[Category:Banknote issuers of the United Kingdom|England]] [[Category:Banks established in 1694]] [[Category:Banks of the United Kingdom| ]] [[Category:Grade I listed buildings in the City of London]] [[Category:Central banks|England]] [[Category:Economy of the United Kingdom]] [[Category:European System of Central Banks|England]] [[Category:HM Treasury]] [[Category:Organisations based in London with royal patronage]] [[Category:Organisations based in the City of London]] [[Category:Public corporations of the United Kingdom with a Royal Charter]] [[Category:Herbert Baker buildings and structures]] [[Category:John Soane buildings]] [[Category:Georgian architecture in London]] [[Category:Neoclassical architecture in London]] [[Category:Grade I listed banks]] [[Category:Leeds Blue Plaques]]mark daniel burnett 12/07/1974 kemps place 89 flat 20 rackham rd norwich norffolk nr33jq telphon me on 01603 301090 stop the 2 cards i ask thay have been stolon agine by royal maeil agine stolon my cards met police have charge on them i need emergencey get me me mpleace sate alert emergencey8 get me5 a goldt card alert7 me5t police a;ler6t r6oyal mail in maenegers is threr is eny mor the5ft by royal mail manegers get hers head off i not joke i w4hont some one hard right now mark daniel burnett i aesk for setalment payment in to markdanielburnett2@gmail.com sum of 600 trillon pounds i ask for 600 trillon pounds faster payment setalment7 bank of england page to night i ask for payment setalment tresaurys bank of england account 600 trillon pounds in to mark daniel burnett transfering money in to world bank gruop account faster payment same day faster payment in world bank gruop account 501721951004994 account 901264477 account 203367 account 37694524 account 8101921 account 557788 account 501721495120042884 account 637104697951032987 cookies flash play recording back super cookies sas mi6 mi5 met police kgb cia fbi pentegen secoet service get7 hold of all royal maeil if eny st7olon if eny stolon my cards money i head off or will cjut tryers in norffolk sorting office carsws in park ifr i get super glue i put down stick head on thre5r boody desck i not jokeing i have had u9p to hrer stolon carxds hackers for nlast youer 2 youers i whont same one5 head card stop emergencey get me emdergery card right now command command command command alert'