Subject/Request Details: Questions about the Bank of England (shareholders, dividends paid, directors, member banks)
Date Released: 6 November 2009
'Does the Bank of England have shareholders? If the Bank does have shareholders who are they?'
The Bank of England is the central bank of the whole of the UK and was established as a corporate body by Royal Charter under the Bank of England Act 1694. The Bank was nationalised on 1 March 1946, and gained operational independence to set interest rates in 1997. The Bank is a public sector institution wholly-owned by the government - the entire capital of the Bank is, in fact, held by the Treasury solicitor on behalf of HM Treasury.
'If the Bank of England has share holders do they get paid dividends, and what was the value of dividends paid in the past five years?'
The Bank of England Act 1946, as amended by the Bank of England Act 1998, requires the Bank to pay to HM Treasury, in lieu of dividend on the Bank's capital, on the fifth day of April and October (or prior working date), a sum equal to 25% of the Bank's post-tax profit for the previous financial year or such other sum as the Bank and HM Treasury may agree. The overall effect is that the Bank and HM Treasury will normally share post-tax profits equally. Further information can be found in the Bank's Annual Report and Accounts which are available on our website at www.bankofengland.co.uk/publications/annualreport/index.htm back to 2001.
'Does any of the policy and/or decision makers within the Bank of England hold positions of any kind in any commercial banks or companies? If so who are they and what commercial entity do they hold positions in, and in what capacity/position do they hold in both the commercial entity and the Bank of England?'
The Bank's Court of Directors (Governor, two Deputy Governors and nine non-executive directors) is responsible for managing the affairs of the Bank, other that the formulation of monetary policy. External positions held by members of Court are published on our website.
Court of Directors
The Governors and executive management do not hold positions in commercial banks or companies outside their duties for the Bank of England.
For further information on the Bank's governance framework please visit our website at www.bankofengland.co.uk/about/Pages/governance/default.aspx
'Does the Bank of England have 'Member Banks' and if so which banks are there?'
The Bank of England is the central bank of the UK and does not have any member banks.