TheBank of England is thecentral bank of theUnited Kingdom. It is the model on which most modern central banks have been based. It was set up to act as the government's banker, and is still the banker for theBritish Government. The Bank was privately owned from 1694. The Government took it over in 1946.[3][4]
It is the second oldest central bank in the world (after the Swedish Riksbank), and the world's 8th oldest bank.
In 1998 it became an independent public organisation. Though wholly owned by the government, it has independence in setting monetary policy.[5][6][7][8]
The Bank is one of eight banks authorised to issuebanknotes in the United Kingdom. It has a monopoly on the issue of banknotes inEngland andWales, and regulates the issue of banknotes by commercial banks inScotland andNorthern Ireland.[9]
The Bank's Monetary Policy Committee manages money supply and interest rates. TheTreasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances" but such orders must be endorsed by Parliament within 28 days.[10]
The Bank's headquarters have been in London's main financial district, theCity of London, onThreadneedle Street, since 1734. It is sometimes known asThe Old Lady of Threadneedle Street orThe Old Lady.[11]
Mark Carney assumed the post ofGovernor of the Bank of England on 1 July 2013. He succeeded SirMervyn King, who took over on 30 June 2003. Carney will serve an initial five-year term, and will seek UK citizenship.[12] He is the first non-Briton to hold the post.
