Bank set up. Royal Charter states that the Bank should 'promote the public good and benefit our people'. Established with a capital of £1.2m raised by public subscription, those contributing became subscribers.
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1946
Bank of England nationalised. Capital stock transferred to the Treasury. Compensation to private stockholders.
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1998
Revised governance and accountability framework under the BoE Act 1998. Revised membership of the Court of Directors, established the Oversight Committee within the Court, and Monetary Policy Committee.
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2013
Change in Bank of England's role in response to the financial crisis. Prudential Regulatory Authority and Financial Policy Committee
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2014
3 years strategic plan. "One Bank, One Mission-to promote the good of the people of the UK by maintaining monetary and financial stability." Four pillars: Diverse and Talented, Analytic Excellence, Outstanding Execution, open and Accountability.
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Monetary Policy Committee
Established by BoE Act 1998. Responsible for setting interest rates. Publishes quarterly inflation reports, and Forward Guidance. Meets every four weeks and administers the Asset Purchase Programme.
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section 2A(1) BoE Act 1998
Financial Stability objective - to protect and enhance the stability of the financial system of the UK.
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Financial Policy Committee
Meets quarterly with the objective of identifying, monitoring and taking action to remove or reduce risks with a view to protecting and enhancing the resilience of the UK financial system.
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section 9C(1), (a) and (b) BoE Act 1998
Secondary objective is to support the economic policy of the Government including its objectives for growth and employment.
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Prudential bank supervision
Major objective of the BoE Act 1998 is a sound and stable financial system. Between 1997-2011, responsibility for prudential bank regulation rested with quasi-governmental body, Financial Services Authority.
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'Twin peaks' regulation
From 1 April 2013,new system of bank regulation.Restored BoE to central role.PRA responsible for prudential regulation and supervision of financial institutions.FCA established to protect consumers, enhance integrity and promote effective competition
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Bank of England as lender of last resort
Stability of banking sector ultimately rests on the confidence reposed in it and that, in part, depends on customers being able to redeem their bank deposits on demand. Prevents widespread panic withdrawals.
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Bank of England as lender of last resort (cont.)
Provides credit where banks find themselves temporarily short of liquidity, or where the insolvency of a banking institution may raise the fear of systemic collapse.
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Banker to the government
Exchequer, central account of the government, is kept with BoE. Also manages new issues of government bonds and stocks, advises government and allots bonds and stocks.
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Exchange Equalisation Account
BoE manages the EEA on behalf of the Treasury. Implements any government policy in respect of the exchange rate or makes payments abroad. The level of available credit can be controlled.
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BoE as the banker's bank
Maintains accounts for the clearing banks and other organisations.Settles inter-bank indebtedness arising from payments and other inter-bank dealings.
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Other cards in this set
Card 2
Front
1946
Back
Bank of England nationalised. Capital stock transferred to the Treasury. Compensation to private stockholders.
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