Bank Of England Legislation

The Bank was established as a corporate body by Royal Charter under the Bank of England Act 1694. Since then there have been a number of enactments directly affecting the Bank and its organisation. Various statutory provisions remain in force which are concerned with the Bank’s organisation, governance, powers and functions.

The Bank was established as a corporate body by Royal Charter under the Bank of England Act 1694. Since then there have been a number of enactments directly affecting the Bank and its organisation. Various statutory provisions remain in force which are concerned with the Bank’s organisation, governance, powers and functions.

 

The most recent legislation is the Bank of England Act 1998 which established the arrangements for the Bank’s current monetary policy responsibilities. Under the 1998 Act, the Banking Supervision function that had previously been undertaken by the Bank was transferred to the newly formed Financial Services Authority. As a result responsibility for overall financial stability issues effectively spanned three separate legal entities – the Bank, the Financial Services Authority and HM Treasury. Whilst there is no legislation that formally sets out the respective responsibilities of the three bodies on financial stability, a Memorandum of Understanding between the three parties was established.

 

This article has been reprinted with the authorization of the Bank of England