The Bank of England and its controversial approaches
In 1694, at the initiation of Scotsman William Paterson and with the approval of the new Dutch king of England, William III, a new joint-stock company, the Bank of England was formed. The nation's finances had no real system of money or credit. The Bank was formed to help finance the government's borrowing. The Bank of England is the second oldest central bank in the world after the Swedish Riks bank, which was founded in 1668. The Bank of England is famous as the old lady of Thread needle Street, is the government's bank and the United Kingdom's central bank. It issues bank notes, controls the UK gold reserves and, since 1997, has set official interest rates. The Bank was initially established as a commercial operation but later also secured large government accounts, becoming the government's banker and debt manager. Key defining moments in the development of the Bank: Afterenduring the South Sea Bubble crash of the 1720s, it developed into ...