The Bank of England: The Old Lady of Threadneedle Street

London’s Bank of England isn’t just the heart of the UK's financial world, it’s a fascinating historical landmark and an economic powerhouse that has stood the test of time, surviving rioting, bombing and cyber attacks galore.

Did banks exist in Londinium?

Long before the mighty building we see today, the site of the Bank of England was already significant in London’s history. Following the Roman Conquest, two thousand years ago, the area now known as Bank was a bustling part of Londinium, the Roman settlement that would evolve into London over the coming millennia. While Londinium was not a financial centre in the modern sense, it was a hub for trade, commerce, and currency exchange and Roman Britain even used coins, which were minted in London and other parts of the empire. Londinium was strategically placed on the north bank of the River Thames to allow goods to flow in and out of the city, laying the groundwork for future trade and economic activity. 

By the Medieval era, London had become a successful trading city, in no small part down to its many markets. Wealthy merchants and nobles began offering loans to the growing class of traders. Goldsmiths suddenly became some of the most important, and trusted people in London. Wealthy individuals could leave their valuables with a goldsmith, who would keep them safe in deep vaults beneath their shops, the value of the deposited goods would be calculated and a receipt, known as a promissory note, would be issued to the depositor. These notes could then be traded or sold at the value of the deposited goods. Paper money had arrived, and with it, the blueprint for future generations of financiers to follow.

When was the Bank of England established?

In the late 17th century, England was facing financial ruin. Embroiled in yet another expensive war with France, the War of the Grand Alliance, the government needed to raise funds quickly. In 1690, The Royal Navy had been roundly defeated at The Battle of Beachy Head. It was deemed a national embarrassment and plans were quickly made to rebuild the fleet into the most formidable in the world. But this required money, and a lot of it. The creation of a national bank was deemed the only way forward. The public were invited to invest £10,000 in return for bank stock and the promise of the return of their investment and more through interest. Though there had been some scepticism, it was a roaring success. The money needed to pay for the new fleet was raised in just 12 days, with money pouring in from merchants, traders, the aristocracy and even the King and Queen. The new fleet was built, and its might proved vital in paving the way for Britain to become the first global superpower.

The creation of the bank also solved another issue. By the time of its creation, there was already a plethora of privately owned banks springing up in London, each issuing their own banknotes and dictating and enforcing their own terms of repayment. The result was a lack of trust in the nation’s currency. The Bank of England was given the power to issue banknotes on behalf of the government, which over time standardised and stabilised the country’s finances.

Who built the Bank of England?

Initially, The Bank of England had no home of its own, operating out of the Mercer’s Hall on Cheapside and The Grocer’s Hall on Poultry for the first half of the 18th century. The Bank finally moved to its current site on Threadneedle Street in 1734. The location was chosen as it had been the site of the home of the bank’s first governor, John Houblon. After the death of Houblon’s widow, architect George Sampson was given the green light to demolish Houblon’s house and get to work. This first incarnation of the bank was a shadow of what we see now. Following the Gordon Riots of 1780, when a London mob climbed to the spire of a nearby church and showered projectiles down on the bank, Sir John Soane was employed as architect and surveyor, tasked with expanding and rebuilding the initial structure. He set about purchasing the adjoining properties, expanding the bank in all directions. Sadly, as Soane’s completed bank was only one story high, very little of it remains, besides the Curtain Wall which runs around the perimeter of the site, and is almost 2.5 metres thick.

There were no significant changes made to the Bank between 1823 and the early twentieth century, so, in 1921, architect Herbert Baker was given the job of knocking down Soane’s bank and rebuilding it. The ten storey building that you see today is his alone. 

Is the Bank of England haunted?

Like any old, stately building, the Bank of England possesses an intriguing array of ghostly legends that add to its historical mystique and allure. Among these tales, one of the most well-known is that of the ghost of Henry Hering, a former director of the Bank who served during a time of significant financial change and turmoil. It is said that his spirit roams the grand halls of the Bank at night, lingering in the shadowy corners and echoing through the opulent corridors. Employees who work late or are tasked with the responsibility of closing up the building have reported a series of unsettling experiences. Strange noises, which seem to defy explanation, can often be heard—whispers that drift through the air, the creaking of old wooden floors, and the unmistakable sound of footsteps echoing in the silence of the night. Perhaps Henry isn’t quite ready to leave his eternal retirement just yet!

Another spooky tale involves the vaults, which today hold an estimated 400,000 gold bars. Some say that the spirits of long-forgotten employees linger here, guarding the treasure. The vaults, with their heavy doors and fortified walls, are often described as having a palpable energy, as if the very air is charged with the presence of those who once walked the halls in life. Whispers of a spectral watchman, a figure clad in old-fashioned attire, have been reported by those brave enough to venture into the depths of the vaults. These employees recount tales of feeling watched, a sensation that sends shivers down their spines, as they navigate through the rows of gleaming gold. If you are interested in more of London's ghostly tales, check out our Free Ghost, Ghouls & Ghastly Murders Tour!

Did the Bank of England inspire Gringotts Bank in Harry Potter?

For all the history, mystery, and intrigue surrounding the Bank of England, you might be surprised to learn that it’s also been a location for magical events — at least in the enchanting world of Harry Potter. While the Bank of England itself doesn’t appear directly in the Harry Potter books or films, the renowned Gringotts Wizarding Bank, which is the primary financial institution in J.K. Rowling’s magical universe, bears a striking resemblance to the real-life Bank of England. From the vaults filled with treasure to the secure, fortified structure, it’s clear that the Bank of England inspired some of the design elements of Gringotts. Perhaps there is even a dragon keeping our gold safe. There’s certainly plenty of dragon statues outside the Bank if you know where to look!

Was there a graveyard in The Bank of England?

In 1798, William Jenkins, a 31 year old employee at the Bank of England, died. Several days later, his friends visited the Governor of the Bank of England with a strange request. Jenkins was tall! Tall by our modern standards, but for the late 18th century, where the average height was just 5'7", he was enormous, standing at 6'8", almost a foot above most men. The problem was that this was the era of body snatchers. Doctors needed cadavers to practise on and to study, and when none were provided, they resorted to paying medical students to dig up the dead for them. A man of Jenkins' height could go for 200 guineas, almost £25,000 today. Jenkin’s friends begged the Governor of the Bank to find it in his heart to save him from this afterlife, and incredibly, he agreed. And so it was that William Jenkins was secretly interred under the Garden Court inside the Bank of England. He remained there for over 120 years, before being rediscovered during Herbert Baker’s reconstruction. With the era of body snatchers well passed, he was moved to Nunhead Cemetery near Peckham and placed in the catacombs, where he can still be visited today.

Can I visit the Bank of England?

The Bank of England is open to the public, but unfortunately the vaults are off limits. Instead they have a fantastic free museum, which offers an interesting journey through the Bank’s history, from its early days to its role in modern finance. You can book tickets here. If you would like to see the Bank of England on one of our fantastic Free Tours of London, check out our Historic City of London Tour, or to see our full Free Tour schedule, click here!

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