balances with the Bank of England

Balances with the Bank of England

Accounts that banks hold with the Bank of England. British banks and building societies keep their required reserves and money owed to other banks as balances with the Bank of England.

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balances with the Bank of England

deposits of money by the COMMERCIAL BANKS with the BANK OF ENGLAND. The Bank of England acts as the ‘bankers’ bank’ and commercial banks settle indebtedness between themselves by transferring ownership of these balances. Such balances are included as part of the commercial banks' CASH RESERVES RATIO and RESERVE ASSET RATIO. In addition to the balances held for settling indebtedness, the banks may be required from time to time to make SPECIAL DEPOSITS with the Bank, which have the effect of reducing their reserve assets.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005