National Bank of Scotland
Encyclopedia
The National Bank of Scotland Ltd. was a Scottish
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...

 commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

. It was founded in 1825, and obtained a royal charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...

 in 1831. It became the first Scottish bank to open a London office, in 1864. In 1918 the bank was bought by Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...

, although it continued to operate as an independent institution until 1959, when it merged with the Commercial Bank of Scotland
Commercial Bank of Scotland
The Commercial Bank of Scotland Ltd. was a Scottish commercial bank. It was founded in Edinburgh in 1810, and obtained a royal charter in 1831. It grew substantially through the 19th and early 20th centuries, until 1959, when it merged with the National Bank of Scotland to become the National...

 to become the National Commercial Bank of Scotland
National Commercial Bank of Scotland
The National Commercial Bank of Scotland Ltd. was a Scottish commercial bank. It was established in 1959 through a merger of the National Bank of Scotland with the Commercial Bank of Scotland . Ten years later it merged with the Royal Bank of Scotland, to become the largest clearing bank in Scotland...

. Ten years later the National Commercial Bank merged with the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...

.

During the bank's first year of trading it opened 13 branches, including a headquarters in St. Andrew Square
St. Andrew Square
St. Andrew Square is a city square in Edinburgh, Scotland located at the east end of George Street. The construction of St. Andrew Square began in 1772, as the first part of the New Town, designed by James Craig. Within six years of its completion St. Andrew Square became one of the most...

, Edinburgh. The first governor of the bank was the Duke of Roxburghe
James Innes-Ker, 6th Duke of Roxburghe
James Henry Robert Innes-Ker, 6th Duke of Roxburghe, KT was a Scottish peer.Innes-Ker was the only surviving child of the 5th Duke of Roxburghe and was educated at Eton and Christ Church, Oxford. He inherited his father's titles in 1823 and on 29 December 1836, he married Susanna Stephania...

. Expansion of the bank saw it acquire the Commercial Banking Company of Aberdeen
Aberdeen
Aberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of ....

 in 1833, the Perth
Perth, Scotland
Perth is a town and former city and royal burgh in central Scotland. Located on the banks of the River Tay, it is the administrative centre of Perth and Kinross council area and the historic county town of Perthshire...

 Union Banking Company in 1836, and the Bank of Glasgow in 1844. The London office opened in 1864 on Finch Lane, and the bank became a limited company
Limited company
A limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be...

 in 1882. From 1881 to the early 20th century, the National Bank was Scotland's second-largest, in terms of its liabilities and deposits, the largest being 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...

.

Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...

 purchased the capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....

 of the National Bank in 1918, although the two banks remained separate. The National Bank became the first commercial bank in the world to offer a mobile banking service, which was established on the Isle of Lewis in 1946. In 1947 a new headquarters building was opened in St. Andrew Square, designed in an American-inspired style.

The bank merged with the Commercial Bank of Scotland
Commercial Bank of Scotland
The Commercial Bank of Scotland Ltd. was a Scottish commercial bank. It was founded in Edinburgh in 1810, and obtained a royal charter in 1831. It grew substantially through the 19th and early 20th centuries, until 1959, when it merged with the National Bank of Scotland to become the National...

 (est. 1910) in 1959, following an agreement with Lloyds, whereby they exchanged their ownership of the National Bank, in return for a stake in the merged institution. At the time of the merger, the National Bank operated 198 branches in Scotland and England. Throughout its history, the bank issued its own banknotes.

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