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.
- Maintaining public
confidence in bank notes
- Protecting the value of money over time through the monetary stability objective. That objective is to
deliver low and stable prices, and is defined by the Government set inflation
target of a 2 per cent year-over-year increase in the Consumer Prices Index.
Decisions to achieve that objective are taken by the Bank’s Monetary Policy
- To promote the safety and
soundness of individual financial firms, the Prudential Regulation
Authority (PRA) of the Bank regulates and supervises roughly 1,700 banks,
building societies, credit unions, insurers and major investment firms.
- To protect and enhance the
resilience of the UK financial system as a whole, the Bank’s Financial Policy
Committee (FPC) works to remove or reduce systemic risks. In short, this means
working to prevent future financial crises, or reduce their frequency and
- Regulate and oversee key
payment, clearing and settlement systems.
- Act as lender and market
maker of last resort at times of financial stress.
- We work to safely resolve
failing financial institutions
While the Bank’s
responsibilities may be broad and wide-ranging, there are important benefits to
having them housed within a single institution. Many of these responsibilities
require common skills, information and analysis to fulfil. And there are often
strong interactions among them, which require consistent, timely
decision-making and effective management of any trade-offs.
The Bank’s job is to fulfil
all of these responsibilities by working together in a coordinated way. By
doing so, we can maximise the impact of each of our policies – always with a
single, timeless mission in mind – to promote the good of the people of the