Thread by @BoE_Research

[THREAD] On Saturday, the BoE celebrated its 325th birthday. To commemorate this, we've delved into the back catalogue of BU posts, Staff Working Papers + other research resources to construct a timeline of the BoE's life and its place in the broader history of central banking...

*1694: The Bank of England is founded*

The first Governor Sir John Houblon is elected along with a Deputy Governor and 24 directors: bankofengland.co.uk/archive/direct…

*1734: The BoE moves to Threadneedle Street*

After renting accommodation at Mercer's Hall in Cheapside + then at Grocer's Hall in Princes Street, the Bank acquires a site + appoints George Sampson to build it a permanent new home in Threadneedle Street: bankofengland.co.uk/archive/commit…

*1783: The BoE installs its first library*

The BoE has over 1,000 staff + introduces many "state of the art" innovations for the time including shift work, and time discipline: bankunderground.co.uk/2018/11/07/how…

*1844: The Bank's charter is signed*

This gives the BoE an effective monopoly on new banknote issuance and requiring those notes to be backed 1:1 with gold. But it's not long before a crisis erupts + the charter comes under strain:
bankunderground.co.uk/2016/12/19/the…

*1857: The first global financial crisis erupts*

A railway boom in the midwest goes bust sparking US bank failures. Californian/Australian gold rushes cause a huge monetary stimulus + then a crisis, prompting the BoE to make an unprecedented intervention: bankunderground.co.uk/2016/12/20/the…

*1866: A Lender of Last Resort is born*

The Overend Gurney clearing house goes under, sparking panic and widespread bank withdrawals. The BoE provides liquidity to the financial system, to restore calm and avert a full blown crisis:
bankunderground.co.uk/2016/12/21/unt…

*1890: Barings bank is rescued*

The BoE has to deal with the fall out from trouble in a systemically important financial institution:
bankunderground.co.uk/2016/02/10/res…

*1914: Central Banking becomes a weapon of war*

As the first world war starts, the BoE is used to mobilise London's financial clout + raise funds for the war effort. But the initial bond issue flops + the BoE has to secretly step in to provide the funds:
bankunderground.co.uk/2017/08/08/you…

*1925: Sterling returns to the gold standard*

The pound resumes its pre-war parity, but this arrangement lasts only six years before sterling is once again forced off the gold standard:
bankunderground.co.uk/2018/11/05/mon…

*1930: The BoE is a founder member of the Bank for International Settlements*

Governor Montagu Norman plays a key role in the establishment of the BIS, bringing together central banks from many countries:
bankunderground.co.uk/2019/06/17/bit…

*1959: Radcliffe Report is published*

Influential treasury commissioned review is sceptical about using short term rates as a policy tool. Ushers in era where quantitative controls are a key tool for monetary policy:
bankofengland.co.uk/working-paper/…

*1972: Sterling floats*

The postwar Bretton Woods system of fixed exchange rates collapses, and sterling is no longer pegged to the US dollar. Marks the start of two decades of different monetary policy / exchange rate regimes:
bankofengland.co.uk/working-paper/…

*1974: Herstatt Bank goes bust*

A small, and seemingly unimportant German bank goes bust. But this sets off a chain reaction of forex settlement problems. The episode enters central banking lexicon, giving rise to the term "Herstatt Risk":
bankunderground.co.uk/2015/06/24/boe…

*1991: BBCI fails and the small banks crisis takes hold*

The announcement that the BCCI would close leads to withdrawals of wholesale funds from small and medium sized banks:
bankofengland.co.uk/working-paper/…

*1992: Sterling exits the Exchange Rate Mechanism*

Bank rate is hiked twice in a day to 15% in a bid to defend sterling's value. Leads to the adoption of an inflation target:
bankofengland.co.uk/working-paper/…

*1997: Government gives the BoE Monetary policy independence*

Responsibility for setting interest rates is handed over to the independent Monetary Policy Committee, who are given an explicit inflation target:
bankofengland.co.uk/working-paper/…

*2007: UK experiences its first bank run for a century*

Retail customers of Northern Rock begin queueing to withdraw their savings from the bank:
bankunderground.co.uk/2017/09/19/10-…

*2008: Lehman Brothers fails and a financial crisis erupts*

Losses from subprime mortgage lending create problems in the US banking sector, the interbank market dries up and central banks are faced with a global financial crisis:
bankunderground.co.uk/2018/09/17/as-…

*2009: BoE undertakes Quantitative Easing for the first time*

Bank rate hits 0.5%, and policymakers fear they may have reached the effective lower bound. The MPC undertakes quantitative easing to provide further stimulus:
bankofengland.co.uk/working-paper/…

*2011: Interim Financial Policy Committee formed*

Originally set up as committee of BoE's court of directors, subsequently gains full statutory powers as a macroprudential regulatory body:
bankofengland.co.uk/working-paper/…

*2013: Monetary Policy Committee uses forward guidance*

BoE deploys a new policy tool for the first time, providing guidance about the path of future rates:
bankunderground.co.uk/2015/11/27/hed…

*2014: Regular concurrent stress tests of banks introduced*

First annual publication of stress test scenarios and the results for UK banks:
bankunderground.co.uk/2016/12/09/des…

*2015: Bank Underground launched*

The BoE launches its own independent staff blog. Authors write their own views with the goal of encouraging diversity of view and debate. Opening pair of posts are on driverless cars + monetary policy space:
bankunderground.co.uk/2015/06/19/the…

*2016: Bank rate reaches historic low*

Bank rate cut to 0.25%, its lowest ever level since the BoE's foundation:
bankofengland.co.uk/working-paper/…
[END OF THREAD]