The City of London was once considered the financial capital of the world and today it is still one of the world's most important financial centers.The area of the City called the 'Square Mile' contains banks that account for one fifth of total international bank lendind,the world's largest insurance industry and one of the world's largest stock exchanges. In 1989 the financial sector was responsible for 14 percent of Britain's total economic output.

Apart from the Stock Exchange, impprtant institutions in the City include the Bank of England,Lloyd's, The Royal Exchange and the Baltic Exchange.The Bank of England, founded in 1694 and nationalized in 1946 is Britain's 'banker's bank', acting as banker both for thw state and for the other banks.It is sometimes referred to as the 'old lady of Threadneedle Street', after the street where its buildings is situated. The Governor of the Bank of England...