The Bank of England

Published by a ��Ӱ�� Financial Services expert

Practice notes

The Bank of England

Published by a ��Ӱ�� Financial Services expert

Practice notes

This Practice Note introduces the Bank of England (BoE) and provides links to key materials. It outlines key functions and relevant committees and introduces the BoE’s role in relation to recognised clearing houses and settlement, payments and cash. It also outlines how its role has changed since the BoE was founded.

For more information on the UK financial services regulators, see: UK regulators—financial services—overview and The regulators—checklist and for more information on the BoE interacts with the other UK financial services regulators, see Practice Note: Interaction between the PRA, FCA and FPC.

The BoE’s functions—overview

The BoE is the central bank of the UK. It is responsible for, among other things, issuing bank notes and setting the official interest rate for the UK (the Bank Rate) (monetary policy). The BoE is responsible for protecting and enhancing the stability of the UK financial system (the Financial Stability Objective). This is its primary objective, but secondary objectives have been introduced as summarised below. As part of its Financial Stability Objective, it has key responsibilities in relation to overseeing payment systems

Jurisdiction(s):

United Kingdom

Key definition:

Bank of England definition

What does Bank of England mean?

The Bank of England, established in 1694, has the exclusive right of note issue in England and Wales. As an institution it is under the control of HM Treasury and is expected to regain the power to regulate the banking industry.

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