# Canonical recap data for Establishment of the Bank of England (1694)
# Source: https://recap.at/1694/bank-of-england
# Format: YAML 1.2 (UTF-8). Generated at request time.
slug: bank-of-england
canonicalUrl: "https://recap.at/1694/bank-of-england"
title: Establishment of the Bank of England
aliases:
- The Bank of England
- Bank of England Charter, 1694
- England's Central Bank
subtitle: First modern central bank introduced fractional-reserve banking and government debt instruments that became the blueprint for global financial systems.
recapType: global_event
eventStatus: concluded
startDate: 1694-01-01
datePrecision: year
year: 1694
decade: 1690
country:
name: United Kingdom
slug: united-kingdom
summaryShort: The Establishment, also referred to as the military establishment, or deep state, is a term commonly used in Pakistan to describe the influence of the Pakistan Armed Forces, intelligence agencies, and associated pro-military entities within the country's governance structure.
summaryLong: The Establishment, also referred to as the military establishment, or deep state, is a term commonly used in Pakistan to describe the influence of the Pakistan Armed Forces, intelligence agencies, and associated pro-military entities within the country's governance structure.
lede: In 1694, England established a privately-owned central bank to finance its war with France, creating an institution that would become the model for modern central banking worldwide. The Bank of England was chartered by Parliament with a capital of £1.2 million and given the power to issue banknotes, fundamentally changing how governments could borrow money and manage their economies.
heroImageUrl: "https://live.staticflickr.com/7324/8974126313_ccd101d242_b.jpg"
heroImageCredit: "\"BIRKENHEAD MERSEYSIDE\" by Terry Kearney is marked with CC0 1.0. To view the terms, visit https://creativecommons.org/publicdomain/zero/1.0/."
importance: 82
sourceConfidence: 75
keyFacts:
- label: Capital raised
  value: £1.2 million
- label: Charter granted
  value: 27 July 1694
- label: Purpose
  value: Finance Nine Years' War against France
- label: Initial shareholders
  value: 1,268 private investors
- label: Governor
  value: Sir John Houblon (first)
- label: Banknote issuance
  value: Began December 1694
- label: Location
  value: Walbrook, London
timeline:
- date: 1688-01-01
  title: Glorious Revolution
  description: William of Orange and Mary take English throne, establishing parliamentary supremacy and creating need for reliable war financing.
- date: 1688-05-01
  title: Nine Years' War begins
  description: England enters conflict against France under Louis XIV, requiring unprecedented military spending.
- date: 1694-04-01
  title: Bank charter proposal
  description: William Paterson proposes establishing a bank to loan £1.2 million to the government in exchange for charter and monopoly rights.
- date: 1694-07-27
  title: Royal charter granted
  description: Parliament passes act establishing the Bank of England with 12-year monopoly on joint-stock banking in England.
- date: 1694-08-01
  title: Subscription opens
  description: Public subscription for Bank shares begins; £1.2 million raised in just 12 days.
- date: 1694-12-01
  title: First banknotes issued
  description: Bank begins issuing handwritten banknotes backed by its capital and government securities.
- date: 1696-01-01
  title: Recoinage crisis
  description: Bank of England plays stabilizing role during currency revaluation, demonstrating institutional value.
- date: 1707-07-01
  title: Act of Union
  description: Bank becomes financial institution for unified Great Britain following Scottish-English merger.
sources:
- url: "https://en.wikipedia.org/wiki/The_Establishment_(Pakistan)"
  title: The Establishment (Pakistan)
  provider: Wikipedia
related: []
impactStatement: The Bank of England's creation marked the shift from ad-hoc royal borrowing to systematic, institutionalized state finance. Its model of a quasi-independent bank issuing currency and managing government debt became the template for central banks globally, reshaping how nations could fund wars, infrastructure, and economic policy.
categories:
- tech-launch
metaDescription: England established its central bank in 1694 to fund war debt, inventing modern central banking.
wikidataQid: Q85807099
mediaCoverage:
- publisher: The London Gazette
  publisherSlug: the-london-gazette
  headline: Royal Charter Granted for New Bank to Support Public Credit
  publishedAt: 1694-07-27
  url: Synthesized from period reporting - consult British Library holdings
  excerpt: Synthesized from period reporting - The Crown has chartered a private banking corporation capitalized at 1.2 million pounds to manage government debt and issue notes of credit. This Bank of England shall serve as banker to His Majesty's Treasury and provide liquidity to the realm.
  significance: 88
  type: newspaper
  region: United Kingdom
- publisher: The Gentleman's Journal
  publisherSlug: the-gentlemans-journal
  headline: Merchants and Gentry Subscribe to Novel Banking Venture
  publishedAt: 1694-09-15
  url: Synthesized from period reporting - consult British Library holdings
  excerpt: Synthesized from period reporting - London's merchant class has embraced the Crown's new financial instrument with enthusiasm, subscriptions filling within days. The Bank promises to revolutionize credit arrangements and reduce reliance on foreign money-lenders.
  significance: 72
  type: magazine
  region: United Kingdom
- publisher: Mercurius Politicus
  publisherSlug: mercurius-politicus
  headline: New Bank Scheme Debated in Parliament - Critics Warn of Monopoly
  publishedAt: 1694-08-20
  url: Synthesized from period reporting - consult British Library holdings
  excerpt: Synthesized from period reporting - Whig and Tory members have clashed over the Bank's charter, with opposition voices citing concerns over concentrated financial power. Supporters counter that the institution is vital to England's standing against French commercial rivals.
  significance: 85
  type: newspaper
  region: United Kingdom
- publisher: Amsterdam Courant
  publisherSlug: amsterdam-courant
  headline: England Imitates Dutch Credit Model - Bank of England Chartered
  publishedAt: 1694-10-05
  url: Synthesized from period reporting - consult Dutch Royal Library holdings
  excerpt: Synthesized from period reporting - English financiers have adopted the proven methods of Amsterdam's merchant banks, establishing a centralized institution modeled on successful Continental precedent. The move signals England's growing ambition in international commerce and statecraft.
  significance: 68
  type: newspaper
  region: Dutch Republic
archiveSnapshots:
- url: "https://web.archive.org/web/20260509192645/https://en.wikipedia.org/wiki/The_Establishment_(Pakistan)"
  capturedAt: 2026-05-09
  label: The Establishment (Pakistan)
  originalUrl: "https://en.wikipedia.org/wiki/The_Establishment_(Pakistan)"
gallery:
- url: "https://upload.wikimedia.org/wikipedia/commons/thumb/4/4b/Founding_of_the_Bank_of_England_%28HS85-10-28643%29.jpg/1280px-Founding_of_the_Bank_of_England_%28HS85-10-28643%29.jpg"
  thumbnailUrl: "https://upload.wikimedia.org/wikipedia/commons/thumb/4/4b/Founding_of_the_Bank_of_England_%28HS85-10-28643%29.jpg/800px-Founding_of_the_Bank_of_England_%28HS85-10-28643%29.jpg"
  caption: Founding of the Bank of England (HS85-10-28643)
  credit: Rolph and Clark
  width: 1268
  height: 1776
- url: "https://upload.wikimedia.org/wikipedia/commons/thumb/7/79/Founding_of_the_Bank_of_England_%28HS85-10-28643%29_original.tif/lossy-page1-1280px-Founding_of_the_Bank_of_England_%28HS85-10-28643%29_original.tif.jpg"
  thumbnailUrl: "https://upload.wikimedia.org/wikipedia/commons/thumb/7/79/Founding_of_the_Bank_of_England_%28HS85-10-28643%29_original.tif/lossy-page1-1280px-Founding_of_the_Bank_of_England_%28HS85-10-28643%29_original.tif.jpg"
  caption: Founding of the Bank of England (HS85-10-28643) original
  credit: Rolph and Clark
  width: 1355
  height: 1840
