The Preliminary Formation Of The British Central Bank System In The 19th Century

As the Central Bank of Britain and the first central bank in the world,the Bank of England has laid down the basic system of the central bank,that is,what kind of responsibilities a central bank needs to undertake and what functions it needs to have.It can be said that a well-structured central bank must have the right to regulate the financial market,issue currency and become a lender of last resort.This system provides a template for central banks in other countries,whatever type of central bank is,it will consciously follow this system and enrich the connotation of the central bank on the basis of this system.The central banking system enables the Bank of England to create monetary and credit conditions for economic development and thus promote economic growth.At the same time,it also provides an effective guarantee for the normal operation of the economic system and becomes the most important macro-control department in the domestic economic and financial system and an important link between the state and the outside world.The establishment of the central banking system has a specific historical background.This system was conceived in the government’s need to raise money for war and the economic impact of the South Sea bubble.The document that fixed this system as an institution was the Peel Act,which was not long in full.But for the first time the central bank’s characters were defined in clear text.Two aspects of the central banking system were formed in the Act,and the third aspect was formed in the end of the 19 th century from the opposition to the regulation,and the system was initially formed.The Bank of England undoubtedly played a leading role in the establishment of the central banking system in Britain.The establishment of this system can be said to have a tremendous impact.As a result,the Bank of England has become the most important part of the British financial system,and with the development of the times,it has become the axis of the British economy.Although the Bank of England is not a direct participant in the lives of ordinary people,its shadow is everywhere.The central banking system led by the Bank of England has improved the financial system and enhanced the credibility of the government.