Founded in 1694, and sometimes known as the "Old Lady" of Threadneedle Street, the Bank of England is the central bank of the UK. Indeed, much of its history is intertwined with the finance, politics and history of the British Isles.
Every month the financial world waits on tenterhooks for information from the Bank. There is barely a day goes by without it having some influence over our lives - from changes to interest rates that may affect mortgage payments to forecasts on the economy which could affect the finances of the western world and beyond.
Working for this hallowed institution would surely constitute a huge privilege for the average employee, but just what opportunities lie in store for graduates at the Bank, and what are the essential qualifications needed for a successful career?
The Bank of England has clearly defined training for graduates. A masters in economics or finance, for example, is required to enter either the field of monetary policy or financial stability. But non-MSc economists can enter its banking and market services, monetary and financial statistics or financial market operations.
After graduating from Oxford University, Rain Newton-Smith, 26, joined the Bank's PGS1 scheme in 2000. This included sponsorship of a masters in economics at the London School of Economics.
The scheme gave her the opportunity to work for parts of the Bank - including structural economic analysis - before joining its monetary analysis division as an economist three months ago. Part of the Bank's monetary and financial statistics arm, Newton-Smith is a member of one of five teams that collect data used to monitor and evaluate balance sheet trends. This information is made available to outside organisations such as the Office for National Statistics and the European Central Bank as well as other departments within the Bank.
"I am in a team of three in international forecasts for the monetary policy committee (MPC) and we provide a projection of what's happening in the economy over the next few years," she says. "The aim is to provide regular indicators and ad hoc reports, while also contributing to international debates on statistics - there are around 100 economists in a support committee around the world. We look at GDP [gross domestic product], inflation and forecast projections every quarter."
Her and the team also brief the MPC about developments within the UK's corporate sector.
Newton-Smith says the Bank actively encourages employees who want to expand their knowledge of different areas of the organisation, and to seek internal promotions. "The analyst career training programme is very comprehensive and I've taken courses in financial accounting, managing pressure at work, and presentation techniques," she says. "I've also had the chance to attend academic conferences, including the Royal Economics Society easter school at Birmingham University and the Organisation of Economic Cooperation and Development conference on economic growth in Paris."
Choosing an appropriate degree which would allow you to follow a particular career path at the Bank is not necessarily fixed. But Anne-Marie Martin, director of the University of London Careers Service, says there are several common attributes that the Bank of England and top investment banks look for in candidates. "You need to have strong intellectual abilities which are usually indicated by a solid academic track record along with sharp research, analysis and problem-solving skills."
Martin adds that it is worth graduates noting that there are clear differences between the Bank and investment banks in general, specifically when it comes to the roles they perform. The Bank is more focused on macro-economics and performs a general regulatory role over other financial areas.
John Power is 27 and joined the Bank of England two and a half years ago. "I studied for a masters at the London School of Economics and when I started the graduate training programme I chose from a list of selected courses," he says. "I now work for the team who brief people on monetary policy and I am therefore involved in high profile analysis."
Power says that a third of his day is spent in meetings, taking notes and then drafting them into reports. The skills he uses most are computer based, as there is a great deal of Excel spreadsheet work. He also draws on his natural interest in economics. "Every day the onus is on you to trawl through the daily press and take relevant cuttings. You therefore need to have the nous to be able to work well alone."
Power believes that a meticulous nature is vital in order to cope at this level: "The ability to work well in a team is important too, due to the number of meetings where you will be required to speak up. You have to be thorough because even though all work is eventually checked, the material which you submit will have your name on it."
Although graduate applicants from any degree discipline are welcome, economics or finance students who are taking a first or second degree are particularly sought after. And there is a minimum requirement of an upper second for a first degree and applicants must be eligible to work in the UK, or have a valid work permit. Graduates can also consider the structured Analyst Career Training (ACT) programme - the deadlines for which are usually January 14 and June 30 each year.
However, applications may be accepted from strong candidates at any time. Part of the selection process includes a day of competency tests and interviews.
Nicholas Gebbie is a consultant at the sales and trading division of financial recruiters Joslin Rowe. He has fielded candidates for institutions such as the Bank of England and says competition is tight. "A good economics degree would be very important to join a graduate scheme at this level due to the competition. If someone has managed to organise an internship at a bank before they graduate, then all the better."
Some candidates have gone even further, says Gebbie, and organised a year's work at the Treasury. This is invaluable experience as they will be at the cutting edge of finance, focusing on the economics of specific geographical areas, for example enlargement in the EU or the far east. "Many of the candidates I've fielded have also organised training courses at one of the top business schools in Europe, for example the post-graduate programme at the Sorbonne in Paris," he adds.
Employees entering the Bank with A-levels or GCSE's can expect to undertake a different career path. After a comprehensive induction programme, a typical first job would probably be within a team responsible for processing day-to-day administrative work. Here candidates will be given the opportunity to demonstrate their ability to work accurately and methodically while learning how the Bank operates on a day-to-day basis. A particularly motivated person who is quick to learn could progress and become eligible to apply for other jobs within the Bank, all of which are advertised internally. In fact, there are options to undertake further study on a part- time basis, which will be supported by the Bank.
When it comes to benefits and renumeration there are different levels of pay according to qualifications but the core benefits are open to all employees, irrespective of length of service, status or location. But graduates should expect a starting salary of £23,000 plus a year. Salaries are reviewed annually and are linked to a candidate's performance, qualifications, position and experience.
In addition, all employees get membership of the Bank's pension fund, 25 days annual leave, life assurance worth twice a year's salary, private medical insurance and an interest-free season ticket loan. These are the core benefits that the Bank believes represents a minimum level of entitlement. Staff can also use the flexible benefits allowance, which gives individuals the chance to enhance their core benefits by taking a cash allowance in addition to their annual salary, for example.
So, the Bank of England could be an ideal choice for a graduate seeking a career favouring job security and considerate working conditions over the exponential salary growth and bonuses. But they will need a good degree and a broad understanding of the economic landscape.
Links:
· www.bankofengland.co.uk
· www.agr.org.uk
· www.careers.lon.ac.uk
· www.joslinrowe.com