Question

Discuss the differences between Bank of England and Bank of Canada in detail.

Answer 1

Ans:- Bank of England

Bank of England is the central bank of U.K .It was setup by a Scotman William Paterson in 1694 as a private bank. At that time the main object of the bank is being acted as a lender to the government.Later the bank got royal charter in 1844 which gave the previlage to the Bank of England to issue coins and notes.In 1946 U.K government took the ownership of Bank of England,literaly called the bank got nationalised,and gained operational independence to said interest rate in 1997 and setout the rules and regulations in relation to monetary policy.Now the Bank of England is a public sector institution wholy owned and control by U.K government which is accountable to U.K parliament.The entire capital of the bank is held by the treasury solicitor on behalf of Her Majesty's treasury.

Bank of Canada

The Bank of Canada is the central bank of the Canadian government.Initialy it was set up by a privetly owned corporation chartered under the Bank of Canada Act of 1935.Later it was legaly considered as a crown corporation in 1938 owned by the Federal government.It's capital is fully owned and controled by the Canadian government but it is fully independent to carryout its reponsibility.The main role of Bank of Canada is to frame monetary policies and to maintain the financial and economic stability of Canada.The finance minister is the owner of the Bank of Canada because the entire capital share is under the control of Finance minister.