The Bank of England (BoE) is the central bank of the United Kingdom. Sometimes known as the ‘Old Lady’ of Threadneedle Street, the Bank was founded in 1694, nationalised on 1 March 1946, and gained independence in 1997. Standing at the centre of the UK’s financial system, the Bank is committed to promoting and maintaining monetary and financial stability as its contribution to a healthy economy.
The Bank of England has been in place for more than three hundred years, although it wasn’t nationalized until 1946. It serves a dual role as both a consumer bank and a government bank. As such, the “Old Lady of Threadneedle Street,” as the Bank of England is often called, holds a primary role in the financial status of the United Kingdom.
In 1998 the bank’s governing body was changed by the Bank of England Act. Now the Bank of Directors is composed of sixteen non-executive directors, two deputy governors, and the bank’s governor. This has modified the bank’s responsibilities; their two main purposes now include maintaining the UK’s Monetary and financial stability, although it still has as many small-scale account holders as it does large corporate accounts.
In regards to the foreign exchange market, the Bank of England manages the Exchange Equalisation Account. The EEA was formed in 1932 and is the account responsible for influencing the exchange rate of the UK’s gold reserves. It also holds foreign currencies and gold for trading purposes.
Official Website – http://www.bankofengland.co.uk/