Monday, February 16, 2009
Want to print?
The history of payments in the UK
"Three banks in Scotland have the right to print their own money, The Royal Bank of Scotland, the Clydesdale Bank and the Bank of Scotland. " Hmmm. I thought that restricting the right to print money to the BoE was a way to ensure the safety of the financial system. RBS has the right to print money.....Or put it another way, RBS can expand base money, watch that disappear, and then reveal that the backing debt is in default. Surely this is a mistake.
Posted by stillthinking @ 12:53 PM (1453 views)
6 thoughts on “Want to print?”
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montesquieu says:
Scottish banks are allowed to print money but for every £they print, but according to the rules they have to hold the full amount in equivalent BoE notes as deposit, therefore it is quite an expensive thing for them to do
From BoE website
Within the United Kingdom, banknotes are also issued by three note-issuing banks in Scotland and by four in Northern Ireland.
These note issues have to be backed pound for pound by Bank of England notes. Owing to the combined size of these issues – well over a billion pounds – it would be cumbersome for the Bank to hold ordinary Bank of England notes as cover. Instead, special one million and one hundred million pound notes – known as Giants and Titans – are used. These notes are not for general circulation. Jersey, Guernsey and the Isle of Man are not part of the United Kingdom and are responsible for issuing their own notes.
The banks in Scotland are the Bank of Scotland, Royal Bank of Scotland and Clydesdale Bank.
Anyone got change of a hundred million pound note?
str 2007 says:
You couldn’t make it up – A business with a licence to print money goes bust.
Err sorry I’m not helping much am I. I’ll shut up.
little professor says:
FWIW, the RBS notes are much prettier than the ugly BoE notes. i much prefer them, even though some retailers in England look at them suspiciously when I try to use them down South.
wiltshire says:
“Instead, special one million and one hundred million pound notes – known as Giants and Titans – are used. These notes are not for general circulation.” – yet!!!
Wiltshire says:
“Instead, special one million and one hundred million pound notes – known as Giants and Titans – are used. These notes are not for general circulation.” – yet!!!
ketha says:
Obviously BOS is the BOS in HBOS….