Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and was founded in 1694, before being nationalised on 1 March 1946. However, just over ten years ago in 1997, the Bank became an independent institution.
Located in Threadneedle Street, London, the Bank of England is fundamental to the UK's financial system and provides support for the economic policies of the UK's government.
It has two main purposes:
Until recently, many Britons will have not been aware of the Bank of England and its operations, though perhaps recognised it through the issuing of bank notes but the last few months have proved a crucial time for the Bank as it has had to make several important decisions about whether or not to cut the interest rates in the wake of the international credit crunch.
In addition to these functions, the Bank of England:
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provides a banking service to the other financial institutions
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has the capacity to act as a lender of last resort by extending credit when no other institution will
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keeps the UK's foreign exchange and gold reserves
The current Governor of the Bank of England is Mervyn King, who replaced Sir Edward George in 2003.
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