The role of Bank of England


The role of Bank of England

  • Banker to banks  - banks can deposit/borrow to balance their accounts 
  • Banker to government - raise funds to cover governemnt deflicits (sell bonds) 
  • Regulates financical system through PRA 
  • Manages exchange rates  - keep stablility wivout interfering wiv appreciation/depreciation of LT trade + capital flow
  • Lender of last restorts - banks wiv difficulty/unable to meet despositors request to withdraw money turns to B. 
    • B lend money to sticken bank to prevent bank failure 

In extreme cases banks gone too far to be saved 

Relationships with other central banks + organisation - to uphold global banking system 

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