Bank Holidays

[Lennon]

Why do we have bank holidays? I understand the one's at Easter, Good Friday and all that, but what about this one coming up (26th). Don't get me wrong, I'm not complaining :) but was wondering how they came about?

[woofgang]

This is one of those so obvious it can't be right things. They were the holidays when the banks closed...no banks open meant it was harder to do business in a totally cash non electronic society, so businesses closed, giving us all a break

[Lennon]

Thanks for your answers, that makes it a bit clearer. Although, maybe I'm being a bit thick, but why did they decide that tha banks would close on 18 (then 4) working days in a year? That still confuses me - who decided it and why? Was it purely just to give workers a few extra days off in a year?

[WendyW]

In england and Wales all eight are Bank Holidays but some are ones which have been designated bank holidays under the Banking and Financial Dealings Act 1971 these are Good Friday, Easter Monday, Spring Bank holiday, Summer Bank Holiday, Christmas Day and Boxing Day. New Years Day and the Early May Bank holiday were introduced after the 1971 act and are proclaimed each year by the Monarch.

[WendyW]

I forgot to say that the Early May Bank holiday was introduced to celebrate 1st May ... in line with several other countries.

[JohnPPotts]

I was always told that it's because if a bank wanted to close for an extra day then it might be seen as a sign that it was in trouble (as depositors couldn't get their money while it chased creditors), which could cause people to suddenly withdraw their money and so cause a collapse. By imposing ank Holidays, all the Banks could shut and so not be seen as a sign of weakness.