Key moments in the Bank's history - a brief guide

King William & Queen Mary
When William and Mary came to the throne in 1688, public finances were weak. The system of money and credit was in disarray. A national bank was needed to mobilise the nation's resources.

William Paterson
William Paterson proposed a loan of £1,200,000 to the Government. In return the subscribers would be incorporated as the Governor and Company of the Bank of England.

The Royal Charter
The money was raised in a few weeks and the Royal Charter was sealed on 27th July 1694. The Bank started life as the Government's banker and debt-manager, with 17 clerks and 2 gatekeepers. In 1734 the Bank moved to Thread-needle Street, gradually acquiring land and premises to create the site seen today.

Commercial functions
The Bank managed the Government's accounts and made loans to finance spending at times of peace and war. A commercial bank too, it took deposits and issued notes.

The 18th Century
During the 18th Century the Government borrowed more and more money. These outstanding loans were called the National Debt.

1781: renewal of the Bank's Charter
Reliance on the Bank of England was such that when its charter was renewed in 1781 it was described as ' the public exchequer'.

The bankers' bank
By now the Bank was acting as the bankers' bank too. It was liable to fail if all its depositors decided to withdraw their money at the same time. But the Bank made sure it kept enough gold to pay its notes on demand.

The 'Restriction Period'
By 1797 war with France had drained the gold reserves. The Government prohibited the Bank from paying its notes in gold. This Restriction Period lasted until 1821.

Key Resources

Governors of the Bank of England A chronological list (1694 - Present) Download PDF (74k)