How do card payments work?
Whether you’re buying groceries or a laptop, paying by card only takes seconds. Here’s how the money gets from A to B.
How is money created?
Most of the money in the economy is created by banks when they provide loans.
What is deflation?
Falling prices are not always cause for celebration.
Financial market infrastructures – what happens when you pay?
There’s a network of systems that make payments possible. These are known as financial market infrastructures – or FMIs for short.
Why are football players paid so much?
The short answer is: supply and demand.
Why is competition important in banking?
We aim to keep banks safe, but of a bit of healthy competition can be a good thing for consumers.
What risks do banks take?
The three largest risks banks take are credit risk, market risk and operational risk.
Why do we regulate banks?
We want to keep the financial system stable and individual banks safe.
How do we know how much money to print?
We mostly print money to replace old, worn-out banknotes. But it’s also up to demand.
What’s the Bank of England’s role in the housing market?
If we look at how much British households borrow, more than seven out of ten pounds are for mortgages.
How does the housing market affect the economy?
House prices affect how much money people spend. They have tripled since the late 1970s.
Why are new banknotes made of polymer?
Our new banknotes are made of polymer because it is cleaner, safer and stronger than paper.
The Bank of England in literature
We make an appearance in literature as a setting, an institution and even a character in itself.
Climate change: what are the risks to financial stability?
Climate change poses risks for the stability of the financial system, particularly for the insurance and banking sectors.
How fast can the economy grow?
While we often think of economic growth as good news, it can also happen too rapidly.
Is the global financial system any safer than before?
There is more work to be done, but the global financial system is safe, simpler and fairer today than it was a decade ago.
Why is your mortgage rate higher than Bank Rate?
The interest rate on your mortgage is usually much higher than Bank Rate.
How is the Bank of England independent of the Government?
We have specific legal responsibilities for setting policy – for interest rates, for financial stability, and for the regulation of banks and insurance companies.
Why does money depend on trust?
In the past you could exchange banknotes for gold. Today the value of money comes from trust.
How will driverless cars affect the economy?
UK drivers spend 127 hours stuck in traffic each year.
Who owns the Bank of England?
Some people think the Bank of England is owned by private families, the Royal Family, or even run as a private corporation… but this is untrue. So who are we owned by?