(ECONOMICS) A bank that is empowered to issue currency. In the USA, between 1863 (National Bank Act) and 1935, any bank with a federally issued charter (i.e., a national bank) was allowed to issue currency. After 1914, few did.
The US Treasury issued a small number of banknotes until 1971.
In the UK, banknotes of the Bank of England are legal tender; but the Royal Bank of Scotland is also a bank of issue.
Today, in almost every country of the world, the sole bank of issue is the central bank of that country.
The US Treasury issued a small number of banknotes until 1971.
In the UK, banknotes of the Bank of England are legal tender; but the Royal Bank of Scotland is also a bank of issue.
Today, in almost every country of the world, the sole bank of issue is the central bank of that country.
by Abu Yahya May 05, 2010