Bank of England: history and description

Of all the central banks of Europe, the Bank of England holds a special place of honor, and there are very good reasons.In fact, it is a double champion.Apart from the fact that his age is much more than any other European state-owned banks, it is still the oldest financial institution throughout Albion.No wonder he came up with the playful name of "Old Lady", thus alluding to his conservative.

How and when was founded by the Central Bank of England

history of this organization started in 1694.While the government and the king of England needed a loan to finance the war against France.One Scottish financier named William Peterson, came up with the idea of ​​creating a special financial institution, is to print new banknotes and thereby cover the budget deficit.The result was a joint stock company, the owners of which were about 1260 shareholders, including the king himself, and several members of Parliament.The size of the first installment amounted to twelve hundred pounds, and these funds were t

he first loan to the government.So there was the Bank of England - the organization, without which it is difficult to imagine what would be the financial system of the United Kingdom and many other countries.

history of formation

first this organization has the right to grant loans secured, to conduct operations with commercial bills, issue bills of exchange, to buy and sell gold and silver.The king did not have absolute power over her - to get a loan, he had to get permission of Parliament.It must be said that until 1979, the year did not have any regulations governing the work of this institution.And just this year, finally, the corresponding law was adopted, according to which the Bank of England organizes all credit institutions that accept deposits.From this point, after checking each of them receives a new status.They become either recognized by the Bank of England, or licensed companies receive deposits.In that same 1979, the authorities in the country take in their hands the Conservatives, led by Margaret Thatcher, and the focus becomes the monetary policy.Control of the activities of banks carried out by the government through the sale and purchase of promissory notes.Then come the 90 years, and priority are considered operations on the open market.The Bank of England, fulfilling the decree of the Treasury, enters into transactions with the aim of adjusting the level of foreign exchange reserves.In addition, he can and must intervene to control the rate of national currency.In 1997, the Bank of England, the Office of Oversight and finregulirovaniyu and the Treasury signed a memorandum, which describes the principles and conditions for their smooth operation, aimed at ensuring the financial stability of the state.In the same year, in May, the Central Bank receives from the government the right to take their own decision as to the value of interest rates.

Management

headed this financial institution manager (service life - 5 years), part of the Directorate.In addition to his part of the body has 16 members appointed by the government for three years.4 Director are included in the staff of the Bank, and the remaining 12 - it is the heads of major companies.The Directorate shall be collected at least once a month and deal with all the issues that are somehow related to the functions of the Bank.Any practical questions are solved at the level of the Treasury Committee, which consists of five Directors, the manager and his deputy.