Briefly describe the history, the strategy, and the current activities Bank of England (the central bank)
- Assess the financial performance of The bank of England
• this is not intended as a very in-depth analysis, so no need to calculate ratios or do any other calculations;
• simply choose a number of past periods you want to analyse and discuss some key figures from the financial statements and how they have evolved;
• also, identify and explain any areas of good or bad performance of the bank of england and, if you think you have identified any warning signs of poor performance and/or accounting misbehaviour, do discuss them;
• The financial statements of financial institutions are significantly different from financial statements of other “normal” companies given that their “product” is money, so what are assets (e.g. deposits) or liabilities (e.g. loans) for a company becomes liabilities (as the financial institution owes the money in the deposit to the company) and assets (as the company owes the money to the financial institution, who is effectively a supplier to the customer company), respectively. Nevertheless, the performance of a financial institution is still based on their revenue, costs, profits, quality of assets, level of equity, etc. like any other company.