The Bank of England was founded by a parliamentary act in 1694 to generate funds for England’s war efforts against France. Granted a royal charter, the bank functioned as a joint-stock bank with limited liability, and until 1826, no other joint-stock banks were permitted in England and Wales. This unique position, along with being the government’s banker, provided the bank with substantial competitive advantages.
The bank moved to its permanent address on Threadneedle Street in the 1730s, and by that point it had become England’s largest and most prestigious financial institution. Consequently, the Bank of England also served as a banker for other banks, enabling them to settle debts among themselves by maintaining balances with it. Although the economic turbulence surrounding the French Revolution and Napoleonic Wars threatened the bank, its actions in raising funds for Britain’s involvement in these conflicts also significantly bolstered its standing.
The bank remained privately owned until 1946, when it was finally nationalized.
Read More:Â J. Lawrence Broz
