From Private Bank To Central Bank

The Bank of England is established in 1694. Although nearly 40 years later than the Bank of Sweden which was established in 1656,in fact, it is the first bank with full implementation of the central bank functions in the world. Therefore, it is considered as the originator of the central Bank.The Bank of England was not the British central bank with modern sense at the beginning of its establishment. During the end of the 17th century and the early 18th century, the Bank of England was only an ordinary private joint-stock bank. After several financial and economic crisis, it became the quasi-central bank of Britain in mid-18th century. However, it didn't play the full function of a central bank until the early 19th century. The Bank of England had developed from a ordinary private joint-stock bank to British central bank, which could attribute to several aspects, such as economic factors, the needs of government in raising funds, the protection of the Charter of Bank of England and so on. The change of the Bank of England had a far-reaching impact on the development of country bank, bank notes issue, economic development and national debt system.The study includes three parts.The introduction analyzes the important role played by the Bank of England in the rise of Britain in modern time, reviewing domestic and foreign scholars' research of the Bank of England, pointing out the focus of this study.Chapter one focuses on the function's change of the Bank of England in modern time. During the early 18th century and mid-18th century, the Bank of England had developed from private joint-stock banks to quasi-central bank. It had became the practical sense central bank since the early 19th century.Chapter two is the main part of this study in which I will discuss the reasons related to the Bank of England's change. I attempt to analyze the reason in this change through four aspects, which are the impact of economic factors, the needs of government in fund-raising, the protection of the Charter of Bank of England and other factors. In chapter three, my study focuses on the influence of the Bank of England's change in Britain. The change has played an important part in the development of the country bank, the issuance of bank notes, economic development, and national debt system.The conclusion is that the world's economic power must rely on the financial power.