Bank of England

The Governor and Company of the Bank of England - one of the oldest banks in the world, which, however, has only relatively recently attained the status of a central bank. For the vast majority of its three-hundred-year history (founded in 1694), the United Kingdom's main financial institution has performed commercial functions, although it has been privileged to issue banknotes and service the national debt of Great Britain.

History of the origin of the Bank of England

The central bank of the United Kingdom is a vivid reminder of a not very pleasant page in the history of England - after the crushing defeat by the French at the Battle of Beech Head, there was an urgent need to finance a new fleet, for which the then monarch William III lacked money catastrophically. Helping his ruler were businessmen from all over the country, who nevertheless lent the state money not out of selfless patriotism, but at 8% per annum.

В народе Банк Англии известен также под именем «Старушки с улицы Треднидл», на которой он располагается (The Old Lady of Threadneedle Street), но обычно для скорости банк зовут просто «Старушкой» (The Old Lady).

They explain this nickname of the Bank of England by the past of the neighborhood, where the tailors' shops were once located, and a special love for the building of one ghost. The "Black Nun" is still to be found in the neighborhoods and corridors of the Central Bank of England. She is said to be the sister of one of the institution's employees, who was executed in the early 19th century for making counterfeit checks. The unfortunate woman, who learned of her brother's fate only after his death, became insane and wandered around the grounds of the Bank of England for forty years.

Tasks and functions of the Bank of England

The turning points in the functioning of the Bank of England were the nationalization in 1946 and the granting of Central Bank functions in 1997. Since then, the Bank of England has been an independent body that independently forms monetary policy Great Britain.

Among the main tasks of the Bank of England is to maintain price stability in the country, as well as to support the economic policy of the government. Also, the central bank is responsible for exchange rate stability and the purchasing power of the national currency - the pound sterling.

Structure of the Bank of England

The Bank of England is controlled by a Board of Directors consisting of a Governor. the Governor), his two deputies (Eng. Deputy Governors) and 16 members (Non—Executive Directors). All these positions are appointed by royal decree and then approved by the Parliament of the country. The Governor of the Council and his deputies hold office for five years; the other members of the Council hold office for four years.

The Board of Directors meets once a month. The head of the Bank of England also chairs the Monetary Policy Committee. The Monetary Policy Committee, MPC), which decides the level of the interest rate and other issues of UK monetary policy. All practical issues of the bank are discussed by the Treasury Committee, consisting of the Governor, the Deputy Governor and the five Directors.

Useful links about the work of the Bank of England

• Official website of the Bank of England: bankofengland.co.uk
• Bank of England interest rate
• Bank of England meeting schedule
• The national currency of England: the pound sterling
• Minutes of the meetings of the Bank of England
• About Mark Carney