Editing Bank of England (section)

==Functions==
According to its [[strapline]], the bank's core purpose is 'promoting the good of the people of the United Kingdom by maintaining monetary and financial stability'.<ref name="BoEHomepage">{{cite web |title=Home |url=https://www.bankofengland.co.uk/ |website=Bank of England |access-date=6 January 2024}}</ref> This is achieved in a variety of ways:<ref name="BoEAbout">{{cite web |title=About us |url=https://www.bankofengland.co.uk/about |website=Bank of England |access-date=6 January 2024}}</ref>

===Monetary stability===
Stable prices and secure forms of payment are the two main criteria for monetary stability.

====Stable prices====
Stable prices are maintained by seeking to ensure that price increases meet the Government's inflation target. The bank aims to meet this target by adjusting the base [[interest rate]] (known as the [[bank rate]]), which is decided by the bank's [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee (MPC)]]. (The MPC has devolved responsibility for managing [[monetary policy]]; [[HM Treasury]] has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but Parliament must endorse such orders within 28 days.)<ref>{{Cite web |title=Act of Parliament gives devolved responsibility to the MPC with reserve powers for the Treasury |url=http://www.opsi.gov.uk/acts/acts1998/ukpga_19980011_en_3#pt2-pb4-l1g19 |url-status=live |archive-url=https://web.archive.org/web/20100314153711/http://www.opsi.gov.uk/Acts/acts1998/ukpga_19980011_en_3#pt2-pb4-l1g19 |archive-date=14 March 2010 |access-date=10 May 2010 |publisher=Opsi.gov.uk}}</ref>

As of 2024 the inflation target is 2%; if this target is missed the Governor is required to write an open letter to the [[Chancellor of the Exchequer]] explaining the situation and proposing remedies.<ref>{{cite web |title=Inflation and the 2% target |url=https://www.bankofengland.co.uk/monetary-policy/inflation |website=Bank of England |date=14 December 2023 |access-date=6 January 2024}}</ref> Other than setting the base interest rate, the main tool at the bank's disposal in this regard is [[quantitative easing]].<ref>{{cite web |title=Monetary policy |url=https://www.bankofengland.co.uk/monetary-policy |website=Bank of England |date=14 December 2023 |access-date=6 January 2024}}</ref>

====Secure forms of payment====
The bank has a monopoly on the issue of [[Banknotes of the pound sterling|banknotes]] in England and Wales and regulates the issuance of banknotes by commercial banks in Scotland and Northern Ireland. (Scottish and Northern Irish banks retain the right to issue their own banknotes, but they must be backed one-for-one with deposits at the bank, excepting a few million pounds representing the value of notes they had in circulation in 1845.)<ref name="scot-ni">{{Cite web |title=Scottish and Northern Ireland Banknotes |url=https://www.bankofengland.co.uk/banknotes/scottish-and-northern-ireland-banknotes |access-date=6 January 2024 |website=Bank of England }}</ref>

In addition the bank supervises other [[payment systems]], acting as a [[Settlement (finance)|settlement]] agent and operating [[Real-time gross settlement]] systems including [[CHAPS]].<ref>{{cite web |title=Payment and settlement |url=https://www.bankofengland.co.uk/payment-and-settlement |website=Bank of England |access-date=6 January 2024}}</ref> In 2024 the bank was settling around £500 billion worth of payments between banks each day.

===Financial stability===
Maintaining financial stability involves protecting the UK's savers, investors and borrowers against threats to the financial system as a whole.<ref name="BoEStability">{{cite web |title=Financial stability |url=https://www.bankofengland.co.uk/financial-stability |website=Bank of England |date=20 December 2023 |access-date=8 January 2024}}</ref> Threats are detected by the bank's surveillance and [[market intelligence]] functions, and dealt with through financial and other operations (both at home and abroad). The majority of these safeguards were put in place in after the [[2008 financial crisis]]:

====Regulation====
In 2011 the bank's [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] was established to regulate and supervise all major banks, building societies, credit unions, insurers and investment firms in the UK ('[[microprudential regulation]]').<ref>{{cite web |title=Prudential regulation |url=https://www.bankofengland.co.uk/prudential-regulation |website=Bank of England |access-date=6 January 2024}}</ref> The bank also has a statutory supervisory role in relation to [[financial market]] infrastructures.<ref>{{cite web |title=Financial market infrastructure supervision |url=https://www.bankofengland.co.uk/financial-stability/financial-market-infrastructure-supervision |website=Bank of England |date=21 December 2023 |access-date=8 January 2024}}</ref>

====Risk management====
At the same time, the bank's [[Financial Policy Committee]] (FPC) was set up to identify and monitor [[Systemic risk|risks in the financial system]], and to take appropriate action where necessary ('[[macroprudential regulation]]'). The FPC publishes its findings (and actions taken) in a biannual Financial Stability Report.<ref>{{cite web |title=Financial Policy Committee |url=https://www.bankofengland.co.uk/about/people/financial-policy-committee |website=Bank of England |date=20 December 2023 |access-date=8 January 2024}}</ref>

====Banking services====
The bank provides [[wholesale banking]] services to the UK Government (and to over a hundred overseas central banks).<ref name="BoEBankServ">{{cite web |title=Banking services |url=https://www.bankofengland.co.uk/banking-services |website=Bank of England |access-date=6 January 2024}}</ref> It manages the UK's [[Exchange Equalisation Account]] on behalf of [[HM Treasury]] and it maintains the government's [[Consolidated Fund]] account.<ref>{{cite web |title=Consolidated Fund |url=https://www.parliament.uk/site-information/glossary/consolidated-fund/ |website=UK Parliament |access-date=8 January 2024}}</ref> It also manages the country's [[Foreign exchange market|foreign exchange]] reserves and is custodian of the UK's (and others') [[gold reserves]].<ref>{{cite web |title=Gold |url=https://www.bankofengland.co.uk/gold |website=Bank of England |access-date=8 January 2024}}</ref>

The bank also offers 'liquidity support and other services to banks and other financial institutions'.<ref name="BoEAbout" /> [[Commercial banks]] customarily keep a sizeable proportion of their [[Bank reserves|cash reserves]] on [[Deposit (finance)|deposit]] at the Bank of England. These [[central bank reserves]] are used by the banks to settle payments with one another;<ref>{{cite web |title=What do we know about the demand for Bank of England reserves? |url=https://www.bankofengland.co.uk/bank-overground/2023/what-do-we-know-about-the-demand-for-bank-of-england-reserves#:~:text=Why%20do%20reserves%20matter%3F,get%20hold%20of%20cash%20first. |website=Bank of England |access-date=9 January 2024}}</ref> (for this reason the Bank of England is sometimes called 'the bankers' bank').<ref name="BoEHistFun" /> In exceptional circumstances, the Bank may act as the [[lender of last resort]] by extending credit when no other institution will.

As a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services (such as exchanging superseded bank notes).<ref name="Exchanging for an individual at the Bank of England counter">{{Cite web |title=Exchanging old banknotes |url=https://www.bankofengland.co.uk/banknotes/exchanging-old-banknotes |url-status=live |archive-url=https://web.archive.org/web/20191104175115/https://www.bankofengland.co.uk/banknotes/exchanging-old-banknotes |archive-date=4 November 2019 |access-date=19 October 2019 |publisher=Bank of England}}</ref> Until 2017, Bank staff were entitled to open current accounts directly with the Bank of England and were given the unique sort code of 10-00-00.<ref name="Bank of England to close personal banking service for employees"/>

====Resolution====
Under the terms of the [[Banking Act 2009]] the bank is the UK's Resolution Authority for any bank or building society judged '[[too big to fail]]'; as such it is empowered to act in the event of a [[bank failure]] 'to protect the UK's vital financial services and financial stability'.<ref>{{cite web |title=Resolution |url=https://www.bankofengland.co.uk/financial-stability/resolution |website=Bank of England |date=15 December 2023 |access-date=6 January 2024}}</ref>

===Historic services and responsibilities===
Between 1715 and 1998, the Bank of England managed Government Stocks (which formed the bulk of the [[national debt]]): the bank was responsible for issuing stocks to stockholders, paying dividends and maintaining a register of transfers;<ref name="BoEHistFun" /> however in 1998, following the decision to grant the bank operational independence, responsibility for government debt management was transferred to a new [[Debt Management Office (United Kingdom)|Debt Management Office]], which also took over Exchequer cash management and responsibility for issuing Treasury bills from the bank in 2000.<ref>{{cite web |title=Who we are (HM Treasury) |url=https://www.dmo.gov.uk/about/who-we-are/hm-treasury/ |website=United Kingdom Debt Management Office |access-date=10 January 2024}}</ref> [[Computershare]] took over as the registrar for UK Government bonds ([[gilt-edged security|gilt-edged securities]] or 'gilts') from the bank at the end of 2004. The bank, however, continues to act as [[Settlement (finance)|settlement agent]] for the Debt Management Office and custodian of its [[securities]].<ref name="BoEBankServ" />

Ever since its foundation in 1694, the bank had provided a [[retail banking]] service for the Government; however in 2008 it decided to withdraw from offering these services, which are now provided by a range of other financial institutions and managed by the [[Government Banking Service]].

Until 2016, the bank provided personal banking services as a privilege for employees.<ref name="Bank of England to close personal banking service for employees">{{Cite web |last=Topham |first=Gwyn |date=17 July 2016 |title=Bank of England to close personal banking service for employees |url=https://www.theguardian.com/business/2016/jul/17/bank-of-england-closing-personal-banking-service-employees |url-status=live |archive-url=https://web.archive.org/web/20161109090412/https://www.theguardian.com/business/2016/jul/17/bank-of-england-closing-personal-banking-service-employees |archive-date=9 November 2016 |access-date=8 November 2016 |website=[[The Guardian]]}}</ref> Previously, the bank had maintained private and commercial accounts for all sorts of customers, including individuals, small businesses and public organisations; but a change of policy following the [[First World War]] saw the bank increasingly withdraw from this type of business to focus more clearly on its central banking role.<ref>[https://www.gla.ac.uk/media/Media_414002_smxx.pdf ''Western Branch of the Royal Bank of Scotland'' (1993)]</ref>