The Bank of England
The Bank of England

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • The Bank of England
  • The Bank of England at the heart of the UK financial system
  • The Bank of England—regulation, monetary policy, debt management
  • Financial Services Act 2012
  • Legislation and other measures relating to the Bank of England
  • Recognised Investment Exchanges and clearing houses
  • Structure and constitution of the Bank of England
  • The Court of Directors
  • Bank of England committees
  • Other functions of the Bank of England

The Bank of England at the heart of the UK financial system

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note.

The Bank of England (the Bank) is the central bank of the UK. It was founded in 1694 and has been central to the UK’s financial system since this time. It was nationalised under the Bank of England Act 1946 and its stock is held on behalf of HM Treasury.

The Bank is the government’s bank, as well as banker to the UK banking system. It manages the UK’s foreign exchange system and gold reserves. It is the sole issuer of banknotes in England and Wales and has statutory responsibility for setting interest rates. While its role has changed over time, the Bank’s position behind both monetary and financial stability has been evident for many years. These are its two core purposes.

The history of the Bank and the political history of the UK are closely linked. It still has many roles and functions rooted in this history. For example, the Bank Charter Act 1844 tied the issue of notes to the Bank's gold reserves. The Bank

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