Growth Of Banking

Question 1

What had been established by 1694?

Answer 1

• The Bank of England

Question 2

By 1784, how many banks were there in England?

Answer 2

119

Question 3

In 1797, what were banks given permission to issue and how did this benefit employers?

Answer 3

• Given permission to issue bank notes.
• Gave employers an effective way of paying wages from a central fund.

Question 4

By 1808, how many banks were there in the country? What did this signify?

Answer 4

• 800 banks
• Signified the rapid growth of this business sector.

Question 5

By 1825, how had the depression negatively affected the banks?

Answer 5

• Depression which had followed the wars had caused many banks to fail, leading to financial panic.

Question 6

What did the Banking Act of 1862 do?

Answer 6

• Restricted the issuing of notes
• Many banks had used their own notes
• Encouraged the formation of joint stock companies

Question 7

When was the cap of the Clause in the Bank of England Charter removed and what did this do?

Answer 7

1826
- Meant British banks could reach their full potential.

Question 8

What was the first joint stock bank and when was it created?

Answer 8

• Lancashire Banking Company
• October 1826

Question 9

In 1833, what did the Act of Parliament do and how did this benefit banks?

Answer 9

• Permitted joint stock banks to issue cheques
• Increased speed of commercial transactions (some sort of payment for goods or service)
• Banking becomes available to more people because it is safer than carrying around lots of cash

Question 10

What was Robert Owen the first person to do?

Answer 10

• Write the first 1 million pound cheque
• Gave it to charity

Question 11

By 1866, how many joint stock banks were there and how many branches did they have nationwide?

Answer 11

• 154 joint stock banks
• 850 branches nationwide