Central Bank of England

Central Bank of England. Financial Conduct Authority and Gold Price Fixing Scandal. GDI Failings of Corporate Governance. Internal Control of GDI. Specific and Generic Risks. Remuneration. Corporate Social Responsibility. Press Statement. References.

The central bank of England established in 1694. It has gained disinterest in 1997. The central bank of England (CBE) is the major bank of all other banks operating in Great Britain. As the father bank CBE is the only bank that can issue banknotes. The bank has responsibilities which are to control financial and monetary stability. In other words CBE must to make sure that right amount of banknotes is printed out and make careful decisions while setting England’s interest rates in order to avoid recession and economy inflation.

Compared CBE with commercial banks such as Lloyds, Barclays etc. It can be seen that CBE main purpose is not the monetary profit but the prosperity of UK community whereas main purpose of commercial banks is to gain income. Explanation to why CBE does not gain profit is that CBE is Country owned bank where commercial banks are usually privatised. Secondly CBE do not deal with public openly as commercial banks does. Thirdly CBE is the protector of the foreign exchange reserves within UK whereas profitable banks just providing exchange services (Naqvi & Southgate, 2013).

Similarly to giant companies the bank of England has many small committees, subdivisions etc. responsible for the small tasks helping to achieve objectives set out in Great Britain. Monetary Policy committee is responsible for setting interest rates that would balance with price increases in countries economy. Inflation goal is being set out annually. Decisions on level of interest rate at which CBE will lend money to commercial banks and other financial institutions is being made over financial market operations (Amstad & Martin, 2011)

Prudential Regulation Authority (PRA) of CBE controls nearly 2000 financial companies. It includes banks, building societies, major investment firms and insurers. Main objective for PRA is to ensure safety of shielded companies which means to make sure that none of the companies would bring harm for GB financial system (bankofengland, 2014).

Special Resolution Regime (SRR) deals with Banks or financial institutions that are facing bankruptcy. It means that SRR of CBE have a right to transfer assets and liabilities of failing business to private sector purchaser, place the failing business to public sector, transfer firms property to CBE subsidiary with thoughts of future sales etc. (bankofengland, 2014).

In order to reach maximum productivity CBE also must communicate with Central banks of other countries and to share new strategies helping improving international monetary and financial systems (Lyala, 2013)

HM Treasury is UK’s Governments economics and finance ministry. It controls societies expenditure’s and working on sustainable economic growth (Gov, 2014). HM Treasury is responsible for subjects listed below:

UK Tax system – level of personal tax, business tax etc.

Financial Conduct Authority (FCA) is responsible for fairness of financial services operated in UK such as mortgages, loan providers, pensions etc.

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Central Bank of England. (2017 m. Liepos 23 d.). https://www.mokslobaze.lt/central-bank-of-england.html Peržiūrėta 2018 m. Kovo 19 d. 14:48