Westminster Bank
Encyclopedia
Westminster Bank was a British
retail bank which operated in England and Wales
from 1834 until its merger into the National Westminster Bank
in 1970; it remains a registered company but is dormant. Considered one of the Big Five, it expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies.
were so hostile to the Bank Charter Act that London and Westminster's management was primarily concerned with defending the company's right to exist rather than setting up an extensive branch network. As a result, the bank opened only six London
branches in its first three years and no additional offices were established until nearly 20 years later.
London and Westminster made its first acquisition in 1847, when it bought Young & Son. In about 1870 it acquired Unity Joint-Stock Bank, and mergers with Commercial Bank of London and Middlesex Bank had been arranged in 1861 and 1863 respectively. By 1909 London and Westminster had opened or acquired 37 branches in and around London. Yet, despite this expansion effort, the bank felt the effects of competition from provincial banks like Lloyds
and Midland
. These two banks had already established large regional branch networks and were quickly encroaching upon the London market. In order to meet this challenge, in 1909, London and Westminster merged with the influential and prestigious London and County Bank, which had 70 offices citywide and almost 200 in rural counties.
in 1836 and soon had branches in places like Croydon
, Brighton
, Maidstone
and Woolwich
. It was renamed the London and County Banking Co. in 1839. By 1875 it had over 150 branches and was the largest British bank. The resulting entity was named the London County and Westminster Bank. Prior to the merger, London and County had already taken over the business of the following banks:
), which opened branches during and after World War I
in Bordeaux
(1917), Lyon
(1918), Marseilles (1918) and Nantes
(1919). The bank itself also directly established offices in Madrid
(1917), Barcelona
(1917), Antwerp (1919), Brussels
(1919), Bilbao
(1919) and Valencia (1920). These operations were converted into a foreign bank in 1920 and renamed London County Westminster and Parrs Foreign Bank, becoming Westminster Foreign Bank in 1923 and finally International Westminster Bank
in 1973. All the Spanish branches were closed in 1923–4 due to deteriorating economic conditions in Spain
and discrimination against foreign banks. Control of the remaining branches was exercised from London, although between 1940 and 1944 contact with them was lost due to the German occupation.
Birkbeck Building and Freehold Land Society, formed in 1851, developed a large deposit-taking business that developed into banking activity. Cheque books were issued from 1858 and by 1872 the business was trading under the title of Birkbeck Bank. In 1910, when its balance sheet totalled £12.26 million and it had 112,817 accounts, the bank experienced a run. Continuing rumours about its financial position and a climate of depreciation in gilt-edged securities, led to a suspension of payments. The Bank of England provided support for the immediate payment of 10 shillings in the pound to depositors, but as most of its deposits were held as long-term securities the bank lacked liquidity and went into receivership. In 1911 its goodwill and premises were purchased from the receiver by London County and Westminster Bank. In 1917, bank officials decided to acquire the Ulster Bank
(which continued to operate separately), with 170 branches throughout Ireland
, and in 1918 bought Parr's Bank
, with over 320 offices throughout England
. These purchases made London County Westminster and Parrs (which became simply Westminster Bank Limited in 1923) the fifth-largest bank in England. The Parr's name survives in the Bloomsbury
, Parr's Branch of National Westminster Bank at 214 High Holborn
, London, WC1.
During the economic difficulties of the late 1920s and early 1930s, the bank kept tight centralised control over the continental branch of the business to avoid the dangers of too rapid an expansion in unfamiliar markets, but this policy stunted Westminster's international operations. It did mean that the bank escaped the bad debts and currency fluctuations that plagued many other banks between the world wars, allowing the domestic side of the business to grow steadily. The bank continued to expand through acquisition, namely:
Paid-up capital rose from £9 million in 1923 to £40.5 million in 1935. By 1939 there were 1,100 branches and at the time of the merger with National Provincial Bank
in 1968, Westminster had 1,400 branches in England alone.
The District Bank
(a 1962 National Provincial acquisition), National Provincial, and Westminster Bank were fully integrated in the new firm's structure, while Coutts & Co. (a 1920 National Provincial acquisition), Ulster Bank and the Isle of Man Bank
(a 1961 National Provincial acquisition) continued as separate operations. Duncan Stirling, chairman of Westminster Bank, became first chairman of the fifth largest bank in the world. In 1969 David Robarts, former chairman of National Provincial, assumed Stirling's position. The statutory process of integration was completed in 1969 and the new company, National Westminster Bank Limited, opened its doors for business on 1 January 1970. NatWest, as it became known, is now part of The Royal Bank of Scotland Group.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
retail bank which operated in England and Wales
England and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
from 1834 until its merger into the National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
in 1970; it remains a registered company but is dormant. Considered one of the Big Five, it expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies.
London and Westminster Bank
In 1834, the London and Westminster Bank was the first firm founded under the auspices of the Bank Charter Act 1833, which allowed joint-stock banks to be established in the capital. For various reasons, the press, private banking concerns, and the Bank of EnglandBank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
were so hostile to the Bank Charter Act that London and Westminster's management was primarily concerned with defending the company's right to exist rather than setting up an extensive branch network. As a result, the bank opened only six London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
branches in its first three years and no additional offices were established until nearly 20 years later.
London and Westminster made its first acquisition in 1847, when it bought Young & Son. In about 1870 it acquired Unity Joint-Stock Bank, and mergers with Commercial Bank of London and Middlesex Bank had been arranged in 1861 and 1863 respectively. By 1909 London and Westminster had opened or acquired 37 branches in and around London. Yet, despite this expansion effort, the bank felt the effects of competition from provincial banks like Lloyds
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...
and Midland
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
. These two banks had already established large regional branch networks and were quickly encroaching upon the London market. In order to meet this challenge, in 1909, London and Westminster merged with the influential and prestigious London and County Bank, which had 70 offices citywide and almost 200 in rural counties.
London and County Bank
The Surrey, Kent and Sussex Banking Company had been established at SouthwarkSouthwark
Southwark is a district of south London, England, and the administrative headquarters of the London Borough of Southwark. Situated east of Charing Cross, it forms one of the oldest parts of London and fronts the River Thames to the north...
in 1836 and soon had branches in places like Croydon
Croydon
Croydon is a town in South London, England, located within the London Borough of Croydon to which it gives its name. It is situated south of Charing Cross...
, Brighton
Brighton
Brighton is the major part of the city of Brighton and Hove in East Sussex, England on the south coast of Great Britain...
, Maidstone
Maidstone
Maidstone is the county town of Kent, England, south-east of London. The River Medway runs through the centre of the town linking Maidstone to Rochester and the Thames Estuary. Historically, the river was a source and route for much of the town's trade. Maidstone was the centre of the agricultural...
and Woolwich
Woolwich
Woolwich is a district in south London, England, located in the London Borough of Greenwich. The area is identified in the London Plan as one of 35 major centres in Greater London.Woolwich formed part of Kent until 1889 when the County of London was created...
. It was renamed the London and County Banking Co. in 1839. By 1875 it had over 150 branches and was the largest British bank. The resulting entity was named the London County and Westminster Bank. Prior to the merger, London and County had already taken over the business of the following banks:
| Date | Acquisition | Established |
|---|---|---|
| 1839 | Jeffreys & Hill, Chatham Chatham, Medway Chatham is one of the Medway towns located within the Medway unitary authority, in North Kent, in South East England.Although the dockyard has long been closed and is now being redeveloped into a business and residential community as well as a museum featuring the famous submarine, HMS Ocelot,... |
1811 |
| 1841 | Hopkins, Drewett & Co., Arundel Arundel Arundel is a market town and civil parish in the South Downs of West Sussex in the south of England. It lies south southwest of London, west of Brighton, and east of the county town of Chichester. Other nearby towns include Worthing east southeast, Littlehampton to the south and Bognor Regis to... |
1827 |
| 1841 | Hector, Lacy & Co., Petersfield Petersfield, Hampshire Petersfield is a market town and civil parish in the East Hampshire district of Hampshire, England. It is north of Portsmouth, on the A3 road. The town has its own railway station on the Portsmouth Direct Line, the mainline rail link connecting Portsmouth and London. The town is situated on the... |
1808 |
| 1841 | Ridge & Co., Chichester Chichester Chichester is a cathedral city in West Sussex, within the historic County of Sussex, South-East England. It has a long history as a settlement; its Roman past and its subsequent importance in Anglo-Saxon times are only its beginnings... |
c.1783 |
| 1841 | Halford, Baldock & Co., Canterbury Canterbury Canterbury is a historic English cathedral city, which lies at the heart of the City of Canterbury, a district of Kent in South East England. It lies on the River Stour.... |
c.1790 |
| 1841 | Emmerson, Hodgson & Emmerson, Sandwich Sandwich A sandwich is a food item, typically consisting of two or more slices of :bread with one or more fillings between them, or one slice of bread with a topping or toppings, commonly called an open sandwich. Sandwiches are a widely popular type of lunch food, typically taken to work or school, or... |
c.1800 |
| 1842 | Davenport, Walker & Co., Oxford Oxford The city of Oxford is the county town of Oxfordshire, England. The city, made prominent by its medieval university, has a population of just under 165,000, with 153,900 living within the district boundary. It lies about 50 miles north-west of London. The rivers Cherwell and Thames run through... |
1838 |
| 1843 | Wilmshurst & Co., Cranbrook Cranbrook, Kent Cranbrook is a small town in Kent in South East England which was granted a charter in 1290 by Archbishop Peckham, allowing it to hold a market in the High Street. Located on the Maidstone to Hastings road, it is five miles north of Hawkhurst. The smaller settlements of Swattenden, Colliers... |
1822 |
| 1844 | T. & T. S. Chapman, Aylesbury Aylesbury Aylesbury is the county town of Buckinghamshire in South East England. However the town also falls into a geographical region known as the South Midlands an area that ecompasses the north of the South East, and the southern extremities of the East Midlands... |
1837 |
| 1845 | J. Stoveld & Co., Petworth Petworth Petworth is a small town and civil parish in the Chichester District of West Sussex, England. It is located at the junction of the A272 east-west road from Heathfield to Winchester and the A283 Milford to Shoreham-by-Sea road. Some twelve miles to the south west of Petworth along the A285 road... |
1806 |
| 1849 | Trapp, Halfhead & Co., Bedford Bedford Bedford is the county town of Bedfordshire, in the East of England. It is a large town and the administrative centre for the wider Borough of Bedford. According to the former Bedfordshire County Council's estimates, the town had a population of 79,190 in mid 2005, with 19,720 in the adjacent town... |
1829 |
| 1851 | Berkshire Union Banking Co., Newbury Newbury, Berkshire Newbury is a civil parish and the principal town in the west of the county of Berkshire in England. It is situated on the River Kennet and the Kennet and Avon Canal, and has a town centre containing many 17th century buildings. Newbury is best known for its racecourse and the adjoining former USAF... |
1841 |
| 1853 | Eddy & Squire, Berkhamsted Berkhamsted -Climate:Berkhamsted experiences an oceanic climate similar to almost all of the United Kingdom.-Castle:... |
1851 |
| 1859 | Western Bank of London | 1856 |
| 1860 | Robert Davies & Co., Shoreditch Shoreditch Shoreditch is an area of London within the London Borough of Hackney in England. It is a built-up part of the inner city immediately to the north of the City of London, located east-northeast of Charing Cross.-Etymology:... |
1841 |
| 1870 | Nunn & Co., Manningtree Manningtree Manningtree is a town and civil parish in the Tendring district of Essex, England, which lies on the River Stour. It adjoins built-up areas of Lawford to the west and Mistley to the east and the three parishes together are sometimes referred to as "Manningtree".Manningtree is a claimant for the... |
1810 |
| 1888 | Vallance & Payne, Sittingbourne Sittingbourne Sittingbourne is an industrial town about eight miles east of Gillingham in England, beside the Roman Watling Street off a creek in the Swale, a channel separating the Isle of Sheppey from mainland Kent... |
1800 |
| 1891 | Hove Banking Co. Ltd. | 1876 |
| 1907 | Frederick Burt & Co., Cornhill (foreign bankers) | 1872 |
London County and Westminster Bank
In 1913, the bank formed a subsidiary, London County and Westminster Bank (ParisParis
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
), which opened branches during and after World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
in Bordeaux
Bordeaux
Bordeaux is a port city on the Garonne River in the Gironde department in southwestern France.The Bordeaux-Arcachon-Libourne metropolitan area, has a population of 1,010,000 and constitutes the sixth-largest urban area in France. It is the capital of the Aquitaine region, as well as the prefecture...
(1917), Lyon
Lyon
Lyon , is a city in east-central France in the Rhône-Alpes region, situated between Paris and Marseille. Lyon is located at from Paris, from Marseille, from Geneva, from Turin, and from Barcelona. The residents of the city are called Lyonnais....
(1918), Marseilles (1918) and Nantes
Nantes
Nantes is a city in western France, located on the Loire River, from the Atlantic coast. The city is the 6th largest in France, while its metropolitan area ranks 8th with over 800,000 inhabitants....
(1919). The bank itself also directly established offices in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
(1917), Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
(1917), Antwerp (1919), Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
(1919), Bilbao
Bilbao
Bilbao ) is a Spanish municipality, capital of the province of Biscay, in the autonomous community of the Basque Country. With a population of 353,187 , it is the largest city of its autonomous community and the tenth largest in Spain...
(1919) and Valencia (1920). These operations were converted into a foreign bank in 1920 and renamed London County Westminster and Parrs Foreign Bank, becoming Westminster Foreign Bank in 1923 and finally International Westminster Bank
International Westminster Bank
International Westminster Bank Ltd was a subsidiary of the National Westminster Bank and its predecessors from 1913 to 1989, with branches in London, France, Spain and West Germany...
in 1973. All the Spanish branches were closed in 1923–4 due to deteriorating economic conditions in Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and discrimination against foreign banks. Control of the remaining branches was exercised from London, although between 1940 and 1944 contact with them was lost due to the German occupation.
Birkbeck Building and Freehold Land Society, formed in 1851, developed a large deposit-taking business that developed into banking activity. Cheque books were issued from 1858 and by 1872 the business was trading under the title of Birkbeck Bank. In 1910, when its balance sheet totalled £12.26 million and it had 112,817 accounts, the bank experienced a run. Continuing rumours about its financial position and a climate of depreciation in gilt-edged securities, led to a suspension of payments. The Bank of England provided support for the immediate payment of 10 shillings in the pound to depositors, but as most of its deposits were held as long-term securities the bank lacked liquidity and went into receivership. In 1911 its goodwill and premises were purchased from the receiver by London County and Westminster Bank. In 1917, bank officials decided to acquire the Ulster Bank
Ulster Bank
Ulster Bank is a large commercial bank, one of the Big Four in both Northern Ireland and the Republic of Ireland. The Ulster Bank Group is subdivided into two separate legal entities, Ulster Bank Limited and Ulster Bank Ireland Limited...
(which continued to operate separately), with 170 branches throughout Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, and in 1918 bought Parr's Bank
Parr's Bank
Parr's Bank Limited was founded as Parr & Co. in Warrington, then in the county of Lancashire in the United Kingdom in 1788.The private bank became known as Parr, Lyon & Greenall in 1825 and Parr, Lyon & Co. in 1855. In 1865, it was reconstructed as a joint-stock bank under the name Parr’s Banking...
, with over 320 offices throughout England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. These purchases made London County Westminster and Parrs (which became simply Westminster Bank Limited in 1923) the fifth-largest bank in England. The Parr's name survives in the Bloomsbury
Bloomsbury
-Places:* Bloomsbury is an area in central London.* Bloomsbury , related local government unit* Bloomsbury, New Jersey, New Jersey, USA* Bloomsbury , listed on the NRHP in Maryland...
, Parr's Branch of National Westminster Bank at 214 High Holborn
High Holborn
High Holborn is a road in Holborn in central London, England. It starts in the west near St Giles Circus, then goes east, past the Kingsway and Southampton Row, and continues east. The road becomes Holborn at the junction with Gray's Inn Road....
, London, WC1.
During the economic difficulties of the late 1920s and early 1930s, the bank kept tight centralised control over the continental branch of the business to avoid the dangers of too rapid an expansion in unfamiliar markets, but this policy stunted Westminster's international operations. It did mean that the bank escaped the bad debts and currency fluctuations that plagued many other banks between the world wars, allowing the domestic side of the business to grow steadily. The bank continued to expand through acquisition, namely:
| Date | Acquisition | Established |
|---|---|---|
| 1919 | Nottingham & Nottinghamshire Banking Co. Ltd. | 1834 |
| 1921 | Beckett & Co., Leeds Leeds Leeds is a city and metropolitan borough in West Yorkshire, England. In 2001 Leeds' main urban subdivision had a population of 443,247, while the entire city has a population of 798,800 , making it the 30th-most populous city in the European Union.Leeds is the cultural, financial and commercial... and York York York is a walled city, situated at the confluence of the Rivers Ouse and Foss in North Yorkshire, England. The city has a rich heritage and has provided the backdrop to major political events throughout much of its two millennia of existence... |
1774 |
| 1923 | Stilwell & Sons, London | 1774 |
| 1924 | Guernsey Commercial Banking Co. Ltd. | 1835 |
Paid-up capital rose from £9 million in 1923 to £40.5 million in 1935. By 1939 there were 1,100 branches and at the time of the merger with National Provincial Bank
National Provincial Bank
National Provincial Bank was a British retail bank which operated in England and Wales from 1833 until its merger into the National Westminster Bank in 1970; it remains a registered company but is dormant...
in 1968, Westminster had 1,400 branches in England alone.
National Provincial Bank
The merger of Westminster and National Provincial Bank, announced in early 1968, shocked the British public and banking community. Although the Bank of England had indicated a willingness to allow mergers as part of a rationalisation process, no one had seriously believed it would permit mergers among the largest and most influential banks.The District Bank
District Bank
District Bank was a British retail bank which operated in England and Wales from 1829 until its merger into the National Westminster Bank in 1970; it remains a registered company but is dormant...
(a 1962 National Provincial acquisition), National Provincial, and Westminster Bank were fully integrated in the new firm's structure, while Coutts & Co. (a 1920 National Provincial acquisition), Ulster Bank and the Isle of Man Bank
Isle of Man Bank
Isle of Man Bank Limited was founded on 26 October 1865, the first limited company to be formed after a new law, the Companies Act 1865, which paved the way for their establishment on the island...
(a 1961 National Provincial acquisition) continued as separate operations. Duncan Stirling, chairman of Westminster Bank, became first chairman of the fifth largest bank in the world. In 1969 David Robarts, former chairman of National Provincial, assumed Stirling's position. The statutory process of integration was completed in 1969 and the new company, National Westminster Bank Limited, opened its doors for business on 1 January 1970. NatWest, as it became known, is now part of The Royal Bank of Scotland Group.