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Home > About the Bank > How the Bank of England is governed
 

How the Bank of England is governed

The Bank of England is owned by the UK government. Parliament has given us powers through legislation, which means that we are accountable to both Parliament and the public.

The Bank is overseen by a board of directors, known as the Court of Directors, who are appointed by the Queen on the recommendation of the Prime Minister and the Chancellor. Court is responsible for setting and monitoring the Bank's strategy and taking key decisions on spending and appointments. The government chooses one of the non-executive, or external, members to chair Court.
 
We demonstrate our accountability to Parliament through the House of Commons Treasury Committee. Our Governors, Executive Directors and external Monetary Policy Committee and Financial Policy Committee members regularly appear before the committee after the Inflation Report, Financial Stability Report and Prudential Regulation Authority Annual Report are published.
 
New members of the Monetary Policy Committee and Financial Policy Committee also have hearings at the Treasury Committee before they are appointed. Other committees occasionally hold evidence sessions with representatives of the Bank. You can view transcripts, reports and video footage of all appearances. Contact: parliamentaryaffairs@bankofengland.co.uk.
 
The Prudential Regulation Committee is responsible for making the most important decisions about the rules that apply to firms and the supervision of individual firms. The Prudential Regulation Committee prepares a strategy each year, in consultation with the Bank’s Court of Directors. This sets out how the PRA will meet its objectives, which are determined by Parliament.
 

The following document explains how our resolution function and our supervision functions (including those carried out by the PRA) are separated. This fulfils our operational independence obligations, which are set out in the Bank of England and Financial Services Act 2016.

Statement on structural separation between the resolution and supervision functions of the Bank of England

Bank of England legislation

The Bank was originally established by Royal Charter under the Bank of England Act 1694. Since then a number of laws have been made that affect the Bank: 

The Memorandum of understanding on financial crisis management between HM Treasury and the Bank is also relevant.
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