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Bank of Scotland (Ireland)
Encyclopedia
Bank of Scotland was a bank
based in the Republic of Ireland
, a subsidiary of the Bank of Scotland
, which in turn is a part of the Lloyds Banking Group
. It was more widely known under the trading name of its former retail division, Halifax. Since 10 February 2010 the bank has no longer accepted new business, and ceased to operate as a licensed bank on 31 December 2010. The assets of the bank were merged into the Bank of Scotland
plc.
. Later, the parent company established its own brand in the Irish market through the direct sales of mortgages from Edinburgh. Following this, it was decided to rebrand the existing Irish operation as Bank of Scotland (Ireland) in 2000.
In 2001, the bank purchased ICC Bank plc from the Irish State. This company, originally established as the Industrial Credit Company, and later known as Industrial Credit Corporation plc, was set up in 1933 by Seán Lemass
in the Irish Free State
to encourage investment in industry. The company was modelled on the Agricultural Credit Corporation (now called ACCBank).
In 2004, the company took over the direct mortgage sales business from its parent company, and moved it to Dublin. Major new offices were also opened in a brand new building in Limerick
, named "Bank of Scotland House" (formerly the site of the Carlton Cinema).
In 2005, the company announced that it was taking over the Electricity Supply Board
's ShopElectric chain of retail outlets, and turn them into a network of branches. This made the company the fourth-largest bank in the Republic of Ireland, with 46 branches. The company detailed its retail banking plans on 10 January 2006, the first three branches opened the following day, as well as a call centre
in Dundalk
, County Louth
. This put it in direct competition with Permanent TSB
as well as National Irish Bank
, the smallest of the traditional Big Four. The banks became the first Republic of Ireland bank to open on Saturday as standard.
In August 2006, the bank announced that it would adopt a two-brand strategy, re-branding as Halifax for its retail business and retaining the Bank of Scotland name for its industrial/commercial customers.
In 2007, Halifax announced the launch a personal current account paying 10% interest on credit balances up to €
2000 to customers lodging €1500
or more per month. The bank further announced that it was the first in the Republic of Ireland to offer a Visa Debit
card rather than the Laser
debit card issued by other Irish banks which has restricted usability outside Ireland.
announced that it would be shutting all of its 44 retail branches in the Republic in addition to its customer service centre in Dundalk and direct support functions with a loss of 750 jobs. Halifax cited the current economic crisis as the main reason for this decision. The Bank, in its online press release, stated that the commercial and corporate strands of the business in Ireland
would remain unaffected. Bank of Scotland (Ireland) chief executive, Joe Higgins, said : “We have arrived at this difficult position only after an extensive and exhaustive review of all options to secure a viable future for the bank overall and for these businesses.”
However, in August 2010, it was announced that the remaining business of Bank of Scotland Ireland was to be wound down by the end of the year. This followed losses of 1.88 billion euro in the first six months of the year, due mainly to impaired loans to property developers.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
based in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, a subsidiary of the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
, which in turn is a part of the Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
. It was more widely known under the trading name of its former retail division, Halifax. Since 10 February 2010 the bank has no longer accepted new business, and ceased to operate as a licensed bank on 31 December 2010. The assets of the bank were merged into the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
plc.
History
The company was founded in 1965 as Equity Bank Limited. In 1999 it was purchased by the Bank of ScotlandBank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
. Later, the parent company established its own brand in the Irish market through the direct sales of mortgages from Edinburgh. Following this, it was decided to rebrand the existing Irish operation as Bank of Scotland (Ireland) in 2000.
In 2001, the bank purchased ICC Bank plc from the Irish State. This company, originally established as the Industrial Credit Company, and later known as Industrial Credit Corporation plc, was set up in 1933 by Seán Lemass
Seán Lemass
Seán Francis Lemass was one of the most prominent Irish politicians of the 20th century. He served as Taoiseach from 1959 until 1966....
in the Irish Free State
Irish Free State
The Irish Free State was the state established as a Dominion on 6 December 1922 under the Anglo-Irish Treaty, signed by the British government and Irish representatives exactly twelve months beforehand...
to encourage investment in industry. The company was modelled on the Agricultural Credit Corporation (now called ACCBank).
In 2004, the company took over the direct mortgage sales business from its parent company, and moved it to Dublin. Major new offices were also opened in a brand new building in Limerick
Limerick
Limerick is the third largest city in the Republic of Ireland, and the principal city of County Limerick and Ireland's Mid-West Region. It is the fifth most populous city in all of Ireland. When taking the extra-municipal suburbs into account, Limerick is the third largest conurbation in the...
, named "Bank of Scotland House" (formerly the site of the Carlton Cinema).
In 2005, the company announced that it was taking over the Electricity Supply Board
Electricity Supply Board
The Electricity Supply Board , is a semi-state electricity company in Ireland. While historically a monopoly, the ESB now operates as a commercial semi-state concern in a liberalised and competitive market...
's ShopElectric chain of retail outlets, and turn them into a network of branches. This made the company the fourth-largest bank in the Republic of Ireland, with 46 branches. The company detailed its retail banking plans on 10 January 2006, the first three branches opened the following day, as well as a call centre
Call centre
A call centre or call center is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing,...
in Dundalk
Dundalk
Dundalk is the county town of County Louth in Ireland. It is situated where the Castletown River flows into Dundalk Bay. The town is close to the border with Northern Ireland and equi-distant from Dublin and Belfast. The town's name, which was historically written as Dundalgan, has associations...
, County Louth
County Louth
County Louth is a county of Ireland. It is part of the Border Region and is also located in the province of Leinster. It is named after the town of Louth. Louth County Council is the local authority for the county...
. This put it in direct competition with Permanent TSB
Irish Life and Permanent
Irish Life and Permanent, Plc or IL&P is a provider of personal financial services in Ireland. IL&P enjoys limited liability....
as well as National Irish Bank
National Irish Bank
National Irish Bank is a commercial bank in Ireland, one of the traditional Big Four. In December 2004 Danske Bank agreed to purchase National Irish Bank from the National Australia Bank for GB£967m ....
, the smallest of the traditional Big Four. The banks became the first Republic of Ireland bank to open on Saturday as standard.
In August 2006, the bank announced that it would adopt a two-brand strategy, re-branding as Halifax for its retail business and retaining the Bank of Scotland name for its industrial/commercial customers.
In 2007, Halifax announced the launch a personal current account paying 10% interest on credit balances up to €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
2000 to customers lodging €1500
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
or more per month. The bank further announced that it was the first in the Republic of Ireland to offer a Visa Debit
Visa Debit
Visa Debit is a major debit card issued by Visa in the United Kingdom, the Republic of Ireland and other nations of the European Union. Prior to October 2004, the debit card was known as Visa Delta. Since June 2009, the major banks in the UK have begun issuing Visa Debit. Barclays, Bank of...
card rather than the Laser
Laser (debit card)
Laser Card is a debit card scheme in Ireland. The Laser Scheme is maintained and operated by , a not-for-profit body owned by four leading financial institutions in Ireland and overseen since 2008 by the Oversight Unit of the Central Bank. The scheme was launched in 1996 and in 2010 there were...
debit card issued by other Irish banks which has restricted usability outside Ireland.
Closure
On 9 February 2010 Bank of ScotlandBank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
announced that it would be shutting all of its 44 retail branches in the Republic in addition to its customer service centre in Dundalk and direct support functions with a loss of 750 jobs. Halifax cited the current economic crisis as the main reason for this decision. The Bank, in its online press release, stated that the commercial and corporate strands of the business in Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
would remain unaffected. Bank of Scotland (Ireland) chief executive, Joe Higgins, said : “We have arrived at this difficult position only after an extensive and exhaustive review of all options to secure a viable future for the bank overall and for these businesses.”
However, in August 2010, it was announced that the remaining business of Bank of Scotland Ireland was to be wound down by the end of the year. This followed losses of 1.88 billion euro in the first six months of the year, due mainly to impaired loans to property developers.