MINISTRY OF EDUCATION AND TRAINING
HO CHI MINH CITY UNIVERSITY OF
FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION
SUBJECTS OF BANKING MONEY
THE CENTRAL BANKING
SYSTEM IN ENGLAND
Advisor: Dang Quan Tri
May, 2021
Members:
Lại Thị Ngọc Xuân 18DH490435
Võ Thị Kim Ngân 18DH490518
Nguyễn Thị Ngọc Thẩm 18DH490372
Nguyễn Thị Thùy Trinh 18DH490404
Trần Nguyễn Quỳnh Hương 18DH490421
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TABLE OF CONTENT
1. INTRODUCTION ………………………………………………………………………………. 2
2. CENTRAL BANK OF ENGLAND
2.1. History ……………………………………………………………………………………. 3
2.2. Governors of the Bank of England ……………………………………………… 3
2.3. Organizational Structure …………………………………………………………… 4
2.4. Function ………………………………………………………………………………….. 4
2.5. Goals ………………………………………………………………………………………. 5
3. ENGLAND ISSUANCE OF CURRENCY
3.1. British pound sterling ……………………………………………………………….. 6
3.2. Prints on The Pound …………………………………………………………………. 6
4. MONETARY POLICY OF THE BANK OF ENGLAND
4.1. Monetary Policy ………………………………………………………………………. 8
4.2. Monetary Policy tool ………………………………………………………………… 9
4.3. Monetary policy goals ………………………………………………………………. 9
5. INTEREST RATE POLICY OF THE BANK OF ENGLAND
5.1. Impact of interest rates on the British Pound ……………………………… 12
5.2. Interest rate effects on the economy ………………………………………… 12
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CHAPTER 1: INTRODUCTION
Will Rogers, an American writer, has summed up that there have been three great inventions since the
beginning of human life: Fire, the wheel and the central bank. With its status as one of the great
inventions The greatest achievements of the 20th century have shown the importance of the central
bank in the relations of the modern socio-economy. Central banks were born as early as 1688 in
Sweden, by the beginning of the 20th century there were nearly 20 central banks around the world
and today there are about 173 banks. The development of central banks confirms the position and role
of macro management in the monetary and banking sector in each country. Central bank operations
in countries have supported the world economy through crises. Therefore, the central bank of England
also plays a huge role in the country’s economic affairs.
CHAPTER 2: CENTRAL BANK OF ENGLAND
2.1. History
The Bank of England, officially the Governor and Company of the Bank of England, is the central
bank of the United Kingdom , Northern Ireland and the model on which most modern central
banks rely. Founded in 1694, it is the second oldest central bank in operation today, after Sveriges
Riksbank. Bank of England is the 8th oldest bank in the world. It was created to act as a banker
for the UK Government and remains one of the bankers for the UK Government. The bank was
privately owned by shareholders from 1694 until it was nationalized in 1946.
In 1998, it became an independent public institution, wholly owned by the Treasury Department
on behalf of the government, with independence in monetary policy setting. The bank is one of
eight banks authorized to issue banknotes in the UK, but it has a monopoly on paper money in
England and Wales and regulates the paper money issue of commercial banks Scotland and
Northern Ireland.
The Bank’s headquarters have been in the financial district of London, City of London, on
