2016-07-27 Wed

Bank of England, the 2nd oldest bank of the world, is established on 27th July 1694 authorised by a royal charter.

After a crushing defeat of England against France in the Battle of Beachy Head (1690) there was a general scarcity of public funds and credits. To induce subscription of the loan needed by the government a plan was devised to incorporate the subscribers as the Governor and the Company of the Bank of England.

Three years after the proposed plan of establishing a bank, on 27th July 1694 a Royal Charter from the king, William III was issued to form the Bank of England in order to raise funds for the government.

This newly formed bank was given full and sole access to the government's balances, and was the only limited-liability corporation allowed to issue bank notes. The bank started to issue banknotes which were handwritten and made out to an individual who could cash them at any branch of the issuing bank.

On the 30th July 1694, the Court of Directors decided that the device for their Common Seal should represent “Britannia sitting and looking on a Bank of mony”. And hence since then Britannia is the official emblem and logo of the Central Bank of Britain.

The Bank was privately owned by stockholders from its foundation in 1694 and was nationalised in 1946. It is the world’s 8th oldest bank.

In 1994 the bank celebrated its 300th anniversary. In honour of this old establishment, the Royal Mint released a 2 pound gold proof coin. Also a stamp and a FDC was issued by the UK.