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Bank of England

Central bank of the United Kingdom.

Established in 1694, the Bank of England is the world's eighth-oldest bank. It was nationalised in 1946 and became an independent public organisation in 1998. The bank plays a key role in supporting economic policies and maintaining price stability. It is also responsible for monitoring financial stability in the UK and acts as a statutory regulator. The bank's headquarters have been in London since its inception, and it is known as 'The Old Lady of Threadneedle Street'.

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Timeline

Royal Charter granted to the Bank of England

On July 27, 1694, the Bank of England received its Royal Charter, officially incorporating it as The Governor and Company of the Bank of England.

Bank of England opened for business

The Bank of England started its operations on 1 August 1694 in temporary accommodation at the Mercers' Hall in Cheapside with a small staff of 17 clerks and two gatekeepers.

Passing of the 1715 Ways and Means Act

The 1715 Ways and Means Act authorized the Bank of England to receive subscriptions for a government issue of 5% annuities, marking the bank's role in managing Government Stocks and allowing people to invest in government debt.

South Sea Bubble

The South Sea Bubble was the first financial crisis in the history of the Bank of England. It was a speculative bubble in the early 18th century that led to a major financial collapse.

First denominated banknotes issued

In 1725, the Bank of England issued its first denominated banknotes, marking a significant development in the history of banking and currency.

Bank of England moves to Threadneedle Street location

In 1734, the Bank of England relocated to Threadneedle Street, gradually expanding its premises to the current building.

Expansion of Bank of England

After acquiring neighbouring plots of land, the Bank of England began to expand in 1765 with new buildings designed by architect Robert Taylor. The new buildings included a larger Court Room, Committee Room, halls, and offices dedicated to the management of stocks and dividends.

The Gordon Riots and Bank Picquet

During the 1780 Gordon Riots, rioters climbed on St Christopher le Stocks church to throw projectiles at the Bank of England. As a result, a nightly guard called the 'Bank Picquet' was established by soldiers of the Household Brigade to protect the bank and the Mansion House.

Bank of England ordered to stop paying notes in gold

In October 1788, Prime Minister William Pitt the Younger issued a Privy Council Order to the Bank of England, instructing it to cease redeeming banknotes with gold. This decision was made in an attempt to preserve the dwindling gold reserves amidst preparations for war with France.

First Bank of England £5 Note Issued

In 1793, the first Bank of England £5 note was issued in response to the need for smaller denomination banknotes during the French Revolutionary Wars. This note, known as the 'White Fiver', replaced the previous £10 note and remained in circulation until 1957.

Bank Restriction Note

During the Restriction Period in 1797, due to fears of invasion by France, the public rushed to the Bank of England to convert their banknotes into gold, causing a significant drop in the Bank's gold reserves.

Introduction of low-denomination notes by the Bank of England

In 1820, the Bank of England issued low-denomination notes (£1 and £2) for the first time due to a shortage of gold coins. This led to a rise in forgery as the notes were handled by individuals unfamiliar with paper currency.

Opening of the first Bank of England branch in Gloucester

The first Bank of England branch was opened in Gloucester on 19 July 1826. It was one of the most short-lived branches and was not very profitable, leading to the transfer of business to the Bristol branch in 1849.

Expansion and Enclosure of Bank of England

In 1828, the Bank of England was extended and doubled in size to 3.5 acres by architect Sir John Soane. He enclosed it with a windowless wall, which remained in place until the structure was demolished in the 20th century.

Opening of Plymouth branch for Royal Navy banking needs

In 1834, the Bank of England opened its Plymouth branch to assist the Royal Navy with its banking needs and provide easy access to banknotes.

Bank Charter Act

The Bank Charter Act of 1844 was a significant piece of legislation that aimed to regulate the issuing of banknotes by banks in England and Wales.

Transition to Machine-Printed Banknotes by Bank of England

Bank of England started machine-printing banknotes and made them payable to the bearer in 1855, relieving the bank's workers from the manual signing process.

Bank of England approached by Overend Gurney

In 1866, the Bank of England was asked for help by Overend Gurney, but the Bank declined due to the broker's insolvency.

Overend Gurney crisis of 1866

The Overend Gurney crisis of 1866 was a significant financial crisis in the UK. Overend Gurney, the largest discount house at the time, faced losses due to bad loans and ultimately suspended payments on 10 May 1866.

Signing of Banknotes by Chief Cashiers

In 1870, the Chief Cashier at the Bank of England, George Forbes, became the sole individual authorized to sign Bank of England banknotes, a tradition that persists to this day.

First Woman Employed by the Bank of England

In 1894, the first woman was officially employed by the Bank of England, marking a significant milestone in the institution's history.

Attempted Bombing outside Bank of England

In 1913, a terrorist bombing was attempted outside the Bank of England building as part of the suffragette bombing and arson campaign by the Women's Social and Political Union (WSPU). The bomb was defused before detonation, preventing potential civilian casualties.

Governor granted leave for clerks to serve in Defensive Forces

On August 10, 1914, the Governor of the Bank of England granted leave with full pay to as many clerks as possible to serve in the Defensive Forces of the Country.

Montagu Norman becomes Governor of the Bank of England

In 1920, Montagu Norman assumed the position of Governor of the Bank of England, a role he held until 1944. He remains the longest-serving Governor of the Bank of England.

Threadneedle Street rebuilt

In 1925, Bank of England architect Sir Herbert Baker demolished the old Bank designed by Sir John Soane and built a new headquarters for the Bank of England on the same 3.5-acre Threadneedle Street site.

Introduction of Bank of England's First Ten Shilling Note

The Bank of England issued its first ever ten shilling note on November 22, 1928. The note featured a vignette of Britannia and had a red-brown color. Unlike previous notes, these notes were not dated but were identified by the Chief Cashier's signature.

Destruction of Bank of England Sports Centre Clubhouse

In November 1940, the clubhouse of the Bank of England sports centre was destroyed by an incendiary bomb during World War II.

Nationalisation of the Bank of England

In 1946, shortly after the end of Montagu Norman's tenure, the Bank of England was nationalised by the Labour government. The number of Directors was reduced to sixteen, with four full-time Executive Directors. The bank adopted Keynesian economics principles, focusing on 'easy money' and low-interest rates to stimulate aggregate demand.

HM Queen Elizabeth II appears on Bank of England banknotes

On 17 March 1960, the Bank of England issued its first banknote featuring HM Queen Elizabeth II. Prior to this, Britannia was the only character to appear on the banknotes.

Introduction of 'Giant' Banknotes

In 1968, the Bank of England introduced 'Giant' banknotes with a face value of £1 million. These notes have a unique design compared to other denominations and are securely kept within the Bank of England premises, similar to the 'Titans' worth £100 million. They serve a crucial role in supporting the value of Scottish and Northern Ireland banknotes.

Establishment of Bank of England Nominees Limited (BOEN)

In 1977, the Bank of England set up a wholly owned subsidiary called Bank of England Nominees Limited (BOEN) with the objective of acting as a nominee or agent for various entities. BOEN was later granted an exemption from disclosure requirements under the Companies Act 1976.

Introduction of Series E £5 Note

On June 7, 1990, the Bank of England issued the 'Series E' £5 note, which became the smallest denomination issued by the Bank. This note, known as the 'Historical Series', changed the color to turquoise blue and incorporated design elements to prevent counterfeiting.

Bank of England's Tercentenary Celebration

In July 1994, the Bank of England commemorated its 300th anniversary, marking a significant milestone in its history.

Granting Operational Independence to Bank of England

On 6 May 1997, following the 1997 general election in the UK, the Chancellor of the Exchequer announced that the Bank of England would be granted operational independence over monetary policy. This marked a significant shift in the bank's role and responsibilities.

Mervyn King Becomes Governor of Bank of England

On 30 June 2003, Mervyn King assumed the position of Governor of the Bank of England, taking on a key leadership role in the institution.

Northern Rock Bank Crisis

In 2007, Northern Rock Bank in the UK faced severe financial difficulties and had to borrow funds from the Bank of England, acting as a lender of last resort. This event highlighted the importance of central banks in maintaining liquidity and confidence in the financial system.

Mark Carney becomes Governor of the Bank of England

Canadian Mark Carney assumed the role of Governor of the Bank of England on July 1, 2013, becoming the first non-UK citizen to hold the position.

Bank of England Gold Reserves

As of April 2014, the Bank of England held nearly 400,000 gold bullion bars, valued at £142 billion, making it the official gold reserves custodian for the UK and other countries.

First polymer banknote released

On September 13, 2016, the Bank of England issued its first polymer banknote. This marked a significant milestone in the history of British currency.

Bank of England Rates Meeting

The Bank of England holds a meeting to discuss and potentially announce changes to interest rates.

Monetary Stability Functions of the Bank of England

The Bank of England plays a crucial role in maintaining monetary stability by ensuring stable prices and secure forms of payment. It adjusts the base interest rate and uses tools like quantitative easing to meet inflation targets.

End of the Timeline
Bank of England

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