THE HISTORY OF THE BANK OF ENGLAND

The Bank of England was founded in 1694 to act as the Government's banker and debt-manager. Since then its role has developed and evolved, centred on the management of the nation's currency and its position at the centre of the UK's financial system.

Events and circumstances over the past three hundred or so years have shaped and influenced the role and responsibilities of the Bank. They have moulded the culture and traditions, as well as the expertise, of the Bank which are relevant to its reputation and effectiveness as a central bank in the early years of the 21st century. At the same time, much of the history of the Bank runs parallel to the economic and financial history, and often the political history of the United Kingdom more generally.

THE BANK OF ENGLAND

The Bank of England (formally the Governor and Company of the Bank of England) is, despite its name, the central bank of the whole of the United Kingdom and is the model on which most modern, large central banks have been based. The Bank's headquarters has been located in London's main financial district, the City of London, on Threadneedle Street, since 1734. Hence the Bank is sometimes known by the metonym The Old Lady of Threadneedle Street or simply The Old Lady. The Bank of England was founded in 1694 to act as the English Government's banker. The Bank was privately owned and operated from its foundation in 1694 until it was nationalized in 1946. In 1997 it became an independent public organisation, wholly-owned by Government, with operational independence over monetary policy.

THE BANKING SYSTEM OF THE UNITED KINGDOM

The UK banking sector is the third largest in the world after the US and Japan. In addition to having one of the largest commercial banking industries, the UK is also a major international center for investment and private banking. The UK banking sector’s strong international orientation is reflected in the substantial foreign presence and sizeable assets of foreign banks in London. Virtually all of the world's leading banks have investment and commercial banking offices in the City of London.