Founded in 1694, the Bank of England is the central bank of the United Kingdom. Sometimes known as the ‘Old Lady’ of Threadneedle Street, the Bank’s mission is to promote the good of the people of the United Kingdom by maintaining monetary and financial stability.
What does the Bank of England do?
The Bank of England is the UK's central bank. We are owned by the Government but set monetary policy independently. Our mission is to deliver monetary and financial stability for the British people.
Main responsibilities are:
Issuing banknotes and managing the UK’s currency
Only the Bank of England can issue banknotes in England and Wales. Several banks in Scotland and Northern Ireland can also issue notes, and the Bank monitors this process. Financial stability
The Bank of England also has responsibility for UK financial stability – in other words, making sure that the system runs smoothly and that people can trust financial institutions. The banks Financial Policy Committee (FPC) looks out for and works to remove or reduce risks and weaknesses in the UK financial system. The Bank’s Prudential Regulation Authority (PRA) regulates and supervises roughly 1,700 banks, building societies, credit unions, insurers and investment firms to ensure that they are run safely.
Strategic Plan
In March 2014, they launched a three-year Strategic Plan to transform the way we work. The plan established a renewed mission for the Bank: ‘promoting the good of the people of the United Kingdom by maintaining monetary and financial stability’. At the heart of the Strategic Plan is a commitment to build One Bank, which recognises the importance of having responsibility for microprudential supervision, macroprudential policy and monetary policy within the same organisation. It means that the Bank is better placed to deliver key economic benefits: stable inflation, economic growth, and the continuous provision of financial services.