(30 July 2004 – UK) Some 300 years of history has come to an end following the Bank of England’s decision to terminate its role as banker to the British government.The UK central bank has decided to concentrate on its primary raison d’être of preserving monetary and financial stability, and will cease providing retail banking services to government departments.
All retail banking activities to government, corporates and building societies will be phased out over the next few years.
The Bank said commercial banks could replace its current role of making high volume, low value retail payments for its customers through cheque and credit clearing.
However, it will continue its wholesale banking activities to financial markets and cash management services for government accounts.