Creation of the first central bank
The Bank of Sweden in 1668, followed by the Bank of England in 1694. Following the collapse of the Bank of Stockholm managed by Johan Palmstruch (who in 1661 innovated by issuing notes in excess of the amounts of precious metals held in deposits), the « Bank of the Estates of the Realm » (now Bank of Sweden ) was set up in 1668. The Bank of England was founded in 1694, the Banque de France in 1800. These early central banks gradually differentiated themselves from other banks (now called « second-tier banks » or « commercial banks ») by progressively acquiring the monopoly of banknote issuance in a given territory (in 1848 for the Banque de France for the whole metropolitan territory).