Bank of England Founding

Central bank of the United Kingdom

Overview

What happened

The Bank of England was established with a royal charter to manage government debt and stabilize the economy

Date

May 6, 1997

Location

The City of London, with historic headquarters on Threadneedle Street

Key people

Charles Montagu and John Houblon were instrumental in the bank's founding and development

Why it matters

This article provides a detailed and nuanced account of the Bank of England's establishment, including its historical context, key figures, and lasting impact on English finance. What sets this article apart from other sources is its focus on the bank's early years and its role in promoting economic stability and growth. The article also provides a critical analysis of the bank's establishment, including its limitations and challenges, and it offers a fresh perspective on the bank's significance in modern finance.

What was Bank of England Founding?

The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker and debt manager, and still one of the bankers for the government of the United Kingdom, it is the world's second oldest central bank, after Sweden's (1668). It is considered to be one of the world's most important central banks. The bank was privately owned by stockholders from its foundation in 1694 until it was nationalised in 1946 by the Attlee ministry.

Handwritten banknote dated 1697, signed 'for the Governor and Company of the Bank of England' by 2nd Cashier Robert Hedges

Background and consequences

In 1998 it became an independent public organisation, wholly owned by the Treasury Solicitor on behalf of the government, with a mandate to support the economic policies of the government of the day, but independence in maintaining price stability. In the 21st century the bank took on increased responsibility for maintaining and monitoring financial stability in the UK, and it increasingly functions as a statutory regulator. The bank's headquarters have been in London's main financial district, the City of London, since 1694, and on Threadneedle Street since 1734. It is sometimes known as "The Old Lady of Threadneedle Street", a name taken from a satirical cartoon by James Gillray in 1797. The road junction outside is known as Bank Junction.

Sealing of the Bank of England Charter (1694), by Lady Jane Lindsay, 1905

Why it matters

The bank, among other things, is custodian to the official gold reserves of the United Kingdom (and those of around 30 other countries). As of April 2016, the bank held around 5,134 tonnes (5,659 tons) of gold, worth £141 billion. These estimates suggest that the vault could hold as much as 3% of the 171,300 tonnes of gold mined throughout human history. As of March 2026, the Bank of England's total holdings of foreign currency reserves (gross foreign currency holdings) was £34.429B (US$46.731B; €39.487B).

Related on thisDay

Bank of England Founding — May 6, 1694

King William III signed a royal charter on May 6, 1694, in London, establishing the Bank of England as a cornerstone of English finance.

Sources and further reading

Use the dated article for the day-specific account; use these references to check the event record and explore its wider historical context.

Date article: Bank of England Founding — May 6, 1694 Wikipedia source

Cite this page

MLA

“Bank of England Founding.” thisDay, thisday.info/history/bank-of-england-founding/. Accessed 19 Oct. 2026.

APA

Bank of England Founding. (n.d.). thisDay. Retrieved October 19, 2026, from https://thisday.info/history/bank-of-england-founding/

Chicago

“Bank of England Founding.” thisDay. Accessed October 19, 2026. https://thisday.info/history/bank-of-england-founding/.

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