Bank of England Act 1998

Link to law: http://www.legislation.gov.uk/ukpga/1998/11/contents

Introductory Text

Part I Constitution, regulation and financial arrangements

Constitution and regulation

1. Court of directors.
2. Functions of court of directors.
3. Functions to be carried out by non-executive members.
4. Annual report by the Bank.
5. Custody and use of the seal.

Financial arrangements

6. Cash ratio deposits.
7. Accounts.
8. Payments in lieu of dividends.

Supplementary
9. Consequential amendments.

Part II Monetary Policy

Role of the Bank

10. Operational responsibility.
11. Objectives.
12. Specification of matters relevant to objectives.

Monetary Policy Committee of the Bank

13. Monetary Policy Committee.
14. Publication of statements about decisions.
15. Publication of minutes of meetings.
16. Functions of court of directors.

Information and reports

17. Power to obtain information.
18. Reports.

Treasury’s reserve powers
19. Reserve powers.

Supplementary
20. Interpretation of Part II.

Part III Transfer of supervisory functions of the Bank to the Financial Services Authority

Transfer of functions to the Authority

21. Transfer.
22. Supplementary provisions.
23. Consequential amendments.

Authority’s position in relation to transferred functions

24. Status.
25. Liability.
26. Power to charge fees.
27. Power to channel information through agent.

Consequential changes to banking bodies

28. Board of Banking Supervision.
29. Deposit Protection Board.

Supplementary
30. Interpretation of Part III.

Part IV Miscellaneous and general

Miscellaneous

31. Qualifications of a designated agency.
32. Listed institutions: exemption of transactions with Treasury.
33. Closure of National Savings Stock Register to gilts.
34. Provision of brokerage service in connection with gilt registration.
35. Section 207 of the Companies Act 1989: bearer securities.
36. Disclosure of information: minor amendments.

General

37. Restriction on disclosure of information.
38. Offences in relation to supplying information to the Bank.
39. Offences by bodies corporate.
40. Orders.
41. General interpretation.
42. Transitional provisions and savings.
43. Repeals.

Final provisions

44. Extent.
45. Commencement.
46. Short title.

SCHEDULES

SCHEDULE 1
Court of directors

Terms of office

1.(1) Appointment as Governor or Deputy Governor of the Bank...
2.Appointment as director of the Bank shall be for a...
3.A person appointed as director of the Bank in place...
4.A person appointed as Governor, Deputy Governor or director of...

Qualification for appointment

5.(1) A person is disqualified for appointment as Governor, Deputy...
6.The fact that a person has held office as Governor,...

Removal from office

7.(1) A person appointed as Governor or Deputy Governor of...
8.The Bank may, with the consent of the Chancellor of...

Powers

9.The court may act notwithstanding the existence of one or...
10.The court may appoint such sub-committees as it thinks fit....
11.The court may delegate such duties and powers as it...

Meetings
12.(1) The court shall meet at least once a month....

Proceedings
13.(1) At a meeting of the court, the proceedings shall...

Remuneration

14.(1) A person appointed as Governor or Deputy Governor of...
15.A director of the Bank shall be entitled to be...

SCHEDULE 2
Cash ratio deposits

Eligible institutions
1.(1) Each deposit-taker is an eligible institution for the purposes...

Liability base
2.(1) For the purposes of this Schedule, the liability base...

Call notices
3.(1) The Bank may give an eligible institution notice under...

Calculation of depositable amount
4.(1) In the case of any call notice, the amount...

Value bands and applicable ratios
5.The Treasury may by order specify for the purposes of...

Effect of call notice
6.(1) Where the Bank has given an eligible institution a...

Benchmark rate of interest

7.(1) The benchmark rate of interest for the purposes of...
8.The Treasury may by order amend or replace paragraph 7....

Power to obtain information
9.(1) The Bank may by notice in writing require an...

Orders

10.Before making an order under this Schedule, the Treasury shall...
11.In exercising the power to make orders under paragraph 2(2)...

Interpretation
12.In this Schedule— “reference period”, in relation to a call...

Modifications for new entrants
13.(1) In its application to the first call notice to...

SCHEDULE 3
Monetary Policy Committee

Terms of office of appointed members

1.Appointment as a member of the Committee under section 13(2)(b)...
2.A person appointed under section 13(2)(b) or (c) in place...
3.A person appointed under section 13(2)(b) or (c) may resign...
4.(1) A person who holds office as a member of...

Qualification for appointment

5.A person is disqualified for appointment under section 13(2)(b) or...
6.The fact that a person has held office under section...

Removal of appointed members

7.A person appointed under section 13(2)(b) or (c) shall vacate...
8.A person appointed under section 13(2)(b) shall vacate office if...
9.(1) The Bank may, with the consent of the Chancellor...

Meetings
10.(1) The Committee shall meet at least once a month....

Proceedings

11.(1) At a meeting of the Committee, the proceedings shall...
12.The Committee may, in relation to sub-paragraph (2), (3) or...
13.A representative of the Treasury may attend, and speak at,...

Report to court of directors of the Bank
14.The Committee shall submit a monthly report on its activities...

Parliamentary disqualification
15.In Part III of Schedule 1 to the House of...

SCHEDULE 4
Transfer of functions: supplementary provisions

Continuity of exercise of functions
1.(1) The transfer of functions by this Part shall not...

Transfer of staff
2.The transfer of functions by this Part shall be regarded...

Transfer of property, rights and liabilities

3.(1) The Bank shall make a scheme under this paragraph...
4.(1) The property, rights and liabilities capable of being transferred...
5.(1) A scheme under paragraph 3 may also contain provision—...
6.(1) A scheme under paragraph 3 may make such supplemental,...

SCHEDULE 5
Transfer of functions: consequential amendments

Part I Banking supervision

Chapter I Banking Act 1987

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Chapter II Banking Coordination (Second Council Directive) Regulations 1992

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Chapter III Other Enactments

Consumer Credit Act 1974 (c. 39)
36.In the Consumer Credit Act 1974, in section 16(3)(f), for...

Insolvency Act 1986 (c. 45)
37.In the Insolvency Act 1986, in section 422(1), for “Bank...

Building Societies Act 1986 (c. 53)
38.(1) Section 101 of the Building Societies Act 1986 is...

Financial Services Act 1986 (c. 60)
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Insolvency (Northern Ireland) Order 1989 S.I. 1989/2405 (N.I. 19)
40.In the Insolvency (Northern Ireland) Order 1989, in Article 366,...

Courts and Legal Services Act 1990 (c. 41)
41.(1) The Courts and Legal Services Act 1990 is amended...

Charities Act 1993 (c. 10)
42.In the Charities Act 1993, in section 28(8)(b)(ii), for “Bank...

Building Societies Act 1997 (c. 32)
43.(1) Section 32 of the Building Societies Act 1997 is...

Part II Supervision under section 43 of the Financial Services Act 1986

Financial Services Act 1986 (c. 60)
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Investment Services Regulations 1995 (S.I. 1995/3275)
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Part III Supervision under section 171 of the Companies Act 1989

Companies Act 1989 (c. 40)

46.The Companies Act 1989 is amended as follows.
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48.(1) Section 176 is amended as follows.

Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I. 10))

49.(1) The Companies (No. 2) (Northern Ireland) Order 1990 is...
50.In article 93(3), for “and the Bank of England” there...
51.(1) Article 98 is amended as follows.

Part IV General: disclosure of information

Chapter I Banking Act 1987

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Chapter II Other Enactments

Consumer Credit Act 1974 (c. 39)
60.In section 174(3A) of the Consumer Credit Act 1974—

Insurance Companies Act 1982 (c. 50)
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Companies Act 1985 (c. 6)
62.(1) Section 449 of the Companies Act 1985 is amended...

Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6))
63.(1) Article 442 of the Companies (Northern Ireland) Order 1986...

Building Societies Act 1986 (c. 53)
64.(1) The Building Societies Act 1986 is amended as follows....

Financial Services Act 1986 (c. 60)
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Companies Act 1989 (c. 40)
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Courts and Legal Services Act 1990 (c. 41)
67.In section 50(2) of the Courts and Legal Services Act...

Friendly Societies Act 1992 (c. 40)
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Pension Schemes Act 1993 (c. 48)
69.(1) The Pension Schemes Act 1993 is amended as follows....

Pension Schemes (Northern Ireland) Act 1993 (c.49)
70.(1) The Pension Schemes (Northern Ireland) Act 1993 is amended...

Pensions Act 1995 (c. 26)
71.In section 107(1) of the Pensions Act 1995, in the...

Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
72.In Article 105(1) of the Pensions (Northern Ireland) Order 1995,...

SCHEDULE 6

Powers
1.(1) Every application for authorisation under the Banking Act 1987...

Consultation
2.(1) Before making regulations under paragraph 1, the Authority shall—...

Mode of exercise
3.Power to make regulations under paragraph 1 is exercisable by...

Publication
4.(1) Immediately after regulations under paragraph 1 are made they...

Proof of regulations
5.(1) The production of a printed copy of regulations purporting...

SCHEDULE 7
Restriction on disclosure of information

Restricted information
1.(1) Subject to sub-paragraph (2), information is restricted information for...

Disclosure for the purposes of the Bank’s functions
2.(1) Paragraph 1 does not preclude the disclosure of information...

Disclosure by the Bank to other authorities
3.(1) Paragraph 1 does not preclude the disclosure by the...

Onward disclosure
4.(1) Paragraph 1 does not preclude the disclosure by any...

Other permitted disclosures
5.Paragraph 1 does not preclude the disclosure of information—

SCHEDULE 8
Transitional provisions and savings

Bank’s immunity from suit
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Disclosure of information

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Pre-commencement consultation
6.If, before the day on which this Act comes into...

Membership of the Deposit Protection Board
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SCHEDULE 9
Repeals and revocations

Part I Repeals

Part II
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