The Bank has the right operational

The purpose of this regulation - ensuring price stability (in accordance with the inflation target determined by the Government in the budget message) and support for government economic policy, including the task of ensuring economic growth and employment. The Bank publishes a quarterly report on inflation. The task of ensuring price stability is now considered achieved if the retail price index is about 2.5%. The decision on interest rates taken by the Committee on Banking Monetary Policy (Monetary Policy Committee - MPC). The Committee meets monthly. The Committee consists of four permanent members and four experts appointed by the Chancellor of the Exchequer (finance minister he is). Voting is done on the principle "one man one vote." At a meeting of the Committee may participate in the Treasury. They have no right to vote. The decision on interest rates adopted by the Committee for immediate publication. Also be published and minutes of meetings of the Committee. Currently, bank supervision and oversight of money market operators included in the scope of liability of the Bank of England. However, the planned transfer of these functions is a special body - Financial Services Authority. Legally responsible for the Bank of England bank supervision has been defined in 1979, but before the Bank carried out an informal supervision of credit institutions near operating in the London market. The rights granted by the banking act of 1979 were further expanded the act of 1987 which, together with the EU directives defines banking supervision at the present time. The primary objective of banking supervision - protection of customer deposits of banks operating in the English market. According to the above the Bank Act in 1987 nobody has the right to accept deposits from the public without prior consent of the Bank of England (although the activities of some organizations, in particular, dealing with construction financing (Building Societies) and branches of banks from other countries - the EU is controlled by other regulatory agencies). After receiving permission, the credit institution continues to remain under the constant supervision of the Bank of England. There are now more than 500 banks are authorized to accept deposits. Bank of England oversees virtually all of them. Operates a special scheme of deposit protection. It usually covers 90% of the deposit (including accrued interest). The bank involved in the scheme, limits the payment of one depositor to 18 thousand pounds. Bank failures and bank Berings ofkredit End Commerce International, revealed weaknesses in the system of banking supervision, for which the Labour Party was subjected to severe criticism the Bank of England and proposed to deprive the bank supervisory functions and transfer them to the banking committee. But the British Bankers' Association opposed the measure because the task of ensuring financial system stability and the implementation of the Bank's banking supervision are closely related. Supervisors are now systematically take into account the risks faced by banks. Simultaneously, the Bank of England maintains constant internal quality control oversight functions. Category: Bankovskie sistemy