Bank of ENgland
- Created by: Niamh-Jennifer
- Created on: 08-01-18 23:19
View mindmap
- Bank of England
- Role and Functions
- Money supply
- responsible for issuing bank notes and coins
- need to provide enough to supply demand but without causing inflation
- independence setting monetary policy granted in 1997
- to ensure sufficient liquidity in the UK
- at a last resort they are a lender to commercial banks suffering a lack of cash flow
- helps maintain liquidity and confidence in the banking system
- produce forecasts for inflation
- manages foreign reserves
- ensures international debts are settled
- to regulate the banking system
- regulates and supervises financial firms
- regulates and supervises around 1,500 banks, building societies, credit unions, insurers and major investment firms.
- FPC is in charge of safeguarding financial stability
- opperates directly on supply and price of credit in the banking system
- alters loan-to-value ratios
- Money supply
- What is it?
- The central bank in England
- Independent from the government
- Although the government can appoint members
- Government still sets the inflation target
- not subject to political pressures
- Manages the economy and financial sector
- Founded in 1694 and became the official central bank in 1844
- Nationalised in 1946
- Role and Functions
Comments
No comments have yet been made