Bank of Scotland
| Bank of Scotland (BOS) | |
|---|---|
|
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| Country |
 United Kingdom
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| Seat | Edinburgh , Scotland |
| legal form | Part of Lloyds Banking Group plc , ticker symbols LLOY (London), LYG (New York) |
| BIC | LOYDGB2LXXX |
| founding | July 17, 1695 |
| Website | www.bankofscotland.co.uk , www.bankofscotland.de |
| Business data | |
| Employee | 106,000 (Lloyds Banking Group) |
The Bank of Scotland (Bank of Scotland; Gaelic : Banca na h-Alba ) is a Scottish commercial and retail bank headquartered in Edinburgh . Since January 19, 2009 the Bank of Scotland has been part of the British Lloyds Banking Group plc .
In addition to the United Kingdom , the Bank of Scotland also operates in North America , Spain , the Netherlands and Germany . As a private central bank, it has had the right to issue banknotes in Scotland since 1695 .
From 2001 to 2008 the bank belonged to the British banking and insurance group HBOS plc (Halifax Bank of Scotland). In the course of the financial crisis from 2007 , a merger of the HBOS group with the financial group Lloyds TSB was agreed.
history
The Governor and Company of the Bank of Scotland , as its full name, was established by law of the Scottish Parliament on July 17, 1695 and began operations in February 1696. It is the only bank ever established by the Scottish Parliament and the only one commercial institution created by him and still in existence.
The founding act allowed the Bank Board, a registered capital of 1,200,000 Scottish pounds (these were 100,000 pounds sterling ) deposit, the Bank approved a monopoly on banking in Scotland for 21 years, gave the owners (shareholders) limited liability, and the final clause ( only revoked in 1920) made all foreign owners naturalized Scots “in every respect and for every purpose”.
The bank was primarily set up to develop Scotland's trade with England and the two Netherlands . It started in February 1696 with working capital of 120,000 Scots (or £ 10,000). Its 172 shareholders (36 of them in London ) were mainly from Scotland's political and commercial elite. They wanted a banking system that offered longer-term credit and security for merchants and landowners.
The Bank of Scotland was the first European bank to successfully issue paper money that could be redeemed for cash on demand . This was an extremely inexpensive facility considering the poor condition of Scottish coinage at the end of the 17th century. The right to issue banknotes has been preserved to this day.
In the 18th century
After the unification of Scotland and England in 1707, the bank oversaw the minting of old Scottish coins into sterling.
In 1716 the monopoly on the issue of banknotes expired and in 1727 the Royal Bank of Scotland was established by royal statute to avoid problems with the approval of loans to the state by Parliament. For a while there was fierce competition as both banks tried to drive the other out of business. This banking war was more or less over by the 1740s.
During the Jacobite Uprising in 1745, the directors of the bank, despite having a reputation as a Jacobite bank, decided to withdraw circulating banknotes when Bonnie Prince Charlie's Highland Army marched south on Edinburgh. The bank's papers and valuables were placed in safety at Edinburgh Castle . The bank closed its doors for several weeks until the rebel army left the city.
From the 1750s the focus of economic development shifted more to Glasgow and the Scottish West. This led to the growth of banking companies in Glasgow and other cities. The bank took the lead in establishing the security and stability of the entire Scottish banking system, which became more important after the collapse of Ayr Bank in 1772.
In the 19th century
In banking history, there have been threats to the right to issue banknotes at various times. In 1826 there was great indignation in Scotland over the attempt by the British Parliament to prevent the production of banknotes under five pounds face value. Sir Walter Scott wrote a series of letters to the Edinburgh Weekly Journal under the pen name "Malachi Malagrowther" which were immediately reprinted as pamphlets . Their response forced the government to give in and allow Scottish banks to continue printing £ 1 notes. It is for this reason that Sir Walter Scott appears on all Bank of Scotland notes.
In the 19th century there were a number of changes in Scotland's banking system. One development was the advent of large banking corporations with many shareholders. The Western Bank collapsed in 1857. The Bank of Scotland stepped in with the other Scottish banks to pay off Western Bank note holders . In 1878, the City of Glasgow Bank also collapsed spectacularly, ruining all but 254 of its 1,819 shareholders. This catastrophe once again led to a more conservative financial behavior in the Edinburgh banking community.
In the 20th century
The early years of the 20th century brought new business to the bank: industries at the technological crossroads needed financial support to expand, companies such as B. British Aluminum or Barr and Stroud (manufacturers of optical rangefinders for the British Navy) were looking for sophisticated financing on a previously unknown scale.
With the outbreak of World War I, the bank realigned its business policy to national needs. The years between the world wars also proved difficult. Only after the Second World War did the business climate improve again. In the 1950s, the financial sector was hit by a wave of mergers and acquisitions. The Bank of Scotland began this phase with its merger with Glasgow-based Union Bank of Scotland in 1955. Three years later, it expanded into consumer credit with the acquisition of North West Securities (now Capital Bank ) . In 1971 the merger with the British Linen Bank took place.
The 1950s heralded the age of computers that would revolutionize banking: in 1959, the Bank of Scotland became the first British bank to install a computer for centralized account processing. In 1986 the bank was groundbreaking again with the introduction of HOBS (Home and Office Banking Services) - an early application of EDI technology. This service enabled customers to access their television screen accounts over the telephone network using PRESTEL technology, which is similar to on- screen text .
The Bank of Scotland also quickly appreciated the great potential of North Sea oil . In the early 1970s it set up a separate Oil Division , financed exploration in the Forties field and played a leading role in founding the International Oil and Energy Bank .
In 1975 the Bank of Scotland opened its first overseas office in the oil city of Houston , Texas . Branches followed in other US states , in Moscow , Hong Kong and Singapore . In 1987 Countrywide Bank in New Zealand and in 1995 Bank of Western Australia were bought.
In the 21st century
In 2001 the bank agreed to a merger with the Halifax Group to create one of the UK's largest checking banks, HBOS . The Bank of Scotland also acquired ICC Bank in the Republic of Ireland in the same year and has since operated its Irish business as the Bank of Scotland (Ireland) . Since January 2009 the Bank of Scotland has been part of the Lloyds Banking Group plc.
In August 2010 it was announced that the Bank of Scotland (Ireland) will be ceasing to operate as a licensed bank in Ireland at the end of 2010.
The Museum of the Mound, located at the bank's Edinburgh headquarters, has many records and ancient objects on the Bank of Scotland and the more than 300-year history of Scottish banking .
Due to the Brexit , the operational business in Germany was transferred on March 25, 2019 to the German company Lloyds Bank GmbH based in Berlin and has been operated by this since then.
activities
The Bank of Scotland is a global commercial bank, primarily based in Scotland and not a central bank . However, together with the Royal Bank of Scotland (Edinburgh) and the Clydesdale Bank (Glasgow) it has the privilege of issuing banknotes , which it has historically been entitled to . The banks must adhere to the requirements of the Bank of England .
In Germany, the corporate finance division (Bank of Scotland Corporate) has had an office in Frankfurt am Main since 1998. Since January 27, 2009, the Bank of Scotland Germany, based in Berlin, has also been active in the German private customer business and offers car loans and overnight money accounts on the Internet.
In the first year of its activities in Germany, the Bank of Scotland gained around 100,000 new customers. During this period, the bank was able to generate around 1.5 billion euros in deposits. After 3 years there were already 500,000 customers.
Deposit insurance
Until March 2019 deposits were with the German branch of the Bank of Scotland under the provisions of the British deposit insurance Financial Services Compensation Scheme (FSCS) and the Deposit Protection Fund of the Association of German Banks protected (BdB). By the end of 2010, the security limit was 50,000 pounds sterling (GBP). Since December 31, 2010, all EU member states have been obliged to provide a higher deposit insurance of at least 100,000 euros in accordance with EU directives 94/19 / EC and 97/9 / EC. As a result, funds invested with the Bank of Scotland have been 100 percent secured by the UK Deposit Protection Fund since December 31, 2010 up to a total of 85,000 British pounds sterling (GBP) (approx. 100,000 euros). The German branch of the Bank of Scotland joined the Association of German Banks on September 21, 2011. She was also a member of a German deposit insurance fund. All deposits at were secured up to an amount of 250,000 euros. In the event of a claim, the depositor would initially have been protected by the British Deposit Protection Fund up to its maximum limit; amounts exceeding this limit would have been covered by the German deposit protection fund.
Since March 25, 2019, German customers have made deposits at the German company Lloyds Bank GmbH . This is part of the German statutory deposit insurance through the Compensation Scheme of German Banks (EdB), which covers deposits up to EUR 100,000.
Web links
- Bank of Scotland (Engl.)
- Bank of Scotland Germany
- Bank of Scotland banknotes
- Historic banknotes from the Bank of Scotland
- Early documents and newspaper articles on the Bank of Scotland in the 20th century press kit of the ZBW - Leibniz Information Center for Economics .
Individual evidence
- ↑ Entry in the BIC directory at SWIFT
- ^ Ciara O'Brien: Bank of Scotland to quit Irish market by December. In: The Irish Times . August 8, 2010, accessed March 26, 2019 .
- ↑ Bank of Scotland looks back on a successful start. Tagesgeld.org, February 10, 2010, accessed October 5, 2013 .
- ↑ Anette Tepel: Bank of Scotland convinces more and more savers (press release). (PDF 167 kB) Bank of Scotland , January 27, 2012, archived from the original on October 12, 2013 ; accessed on May 1, 2019 (English, original website no longer available).
- ↑ German savers: Why do foreign banks currently offer the best interest rates? uncover-it media (tagesgeld-anleger.com), August 18, 2012, accessed on September 22, 2014 .
- ↑ Information on the Deposit Protection Fund. Bank of Scotland , 2018, accessed April 1, 2018 .
- ↑ Bank of Scotland overnight money now with € 100,000 protection. Tagesgeld-News.de, January 3, 2011, accessed October 5, 2013 .
- ↑ Daily money now secured up to 100,000 euros thanks to the EU Commission. Tagesgeld.org, January 3, 2011, accessed January 20, 2015 .
- ↑ Bank of Scotland expands deposit insurance. Tagesgeld-News.de, October 5, 2011, accessed October 5, 2013 .
- ↑ What is the deposit guarantee for deposits with the Bank of Scotland? Retrieved March 26, 2019 .