AMRO Bank
Encyclopedia
AMRO Bank was a major Dutch bank that was created from the merger of the Amsterdamsche Bank and the Rotterdamsche Bank in 1964. Its name comes from the first two letters of the two originating banks. It went on to become one of the two main predecessors to ABN AMRO
bank when it agreed to merge with Algemene Bank Nederland (ABN) in 1991.
The bank could trace it’s roots back to at least 1765 and both the Amsterdamsche Bank and Rotterdamsche Bank had a long complex history.
As early as 1939 there had been plans to merge the two banks but the banks shelved these plans in anticipation of Dutch involvement in World War II
. It was not until 1964, therefore, that these plans were finally fulfilled.
As soon as the AMRO Bank was set up, it set about gaining market share in business lending, leasing and factoring as well as in medium to long term credit. To do this it established the Nationale Bank voor Middellang Krediet business unit to provide medium to long term credit. It established or acquired companies such as Mahuko (Society for leasing) and Amstel Lease for its leasing
business. The financing of factoring
was brought together under the International Factors Nederland B.V., the oldest factoring company in the Netherlands.
In the 1960s and 1970s, like many other banking companies, AMRO saw growth in retail banking and this became a much bigger part of the business. Its wholesale banking was also strengthened by the acquisition of Pierson, Heldring & Pierson (PHP) in 1975. AMRO operated PHP as an independent unit under its existing name. Another acquisition was Utrecht
based Bank flaors & Ko ,which had been in existence since 1691. This bank was absorbed under the AMRO Bank brand.
In 1967 AMRO Bank was one of the founders of the consortium bank Banque Européenne de Crédit à Moyen Terme (European bank of long term credit) based in Belgium
. The aim was create an entity that was large enough to work at an international level.
Soon after this, with their sights on European integration, AMRO Bank announced plans to collaborate with Belgian Generale Bank with the aim of building a European international bank. However, this project was too ambitious and never managed to get off the ground.
It was only when the Dutch Government announced that it was relaxing its merger rules for financial institutions that ABN
and AMRO Bank were able to seize the opportunity to merge and to create a bank large enough to fulfill these ambitions. On 24 August 1990 ABN AMRO
was created by the conversion of the shares of both banks into shares of the newly established ABN AMRO Holding N.V.
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
bank when it agreed to merge with Algemene Bank Nederland (ABN) in 1991.
The bank could trace it’s roots back to at least 1765 and both the Amsterdamsche Bank and Rotterdamsche Bank had a long complex history.
History
AMRO bank was established in 1964 as the result of the merger of the Amsterdamsche Bank and the Rotterdamsche Bank, but the banks were not integrated until the following year. The Amsterdamsche Bank (AB) had been established in 1871 and had expanded rapidly from its base in Amsterdam to other cities in the Netherlands. It followed its main rival, the Rotterdamsche Bank, which was established in 1863, in acquiring other banks and financial institutions to create a national bank.As early as 1939 there had been plans to merge the two banks but the banks shelved these plans in anticipation of Dutch involvement in World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. It was not until 1964, therefore, that these plans were finally fulfilled.
As soon as the AMRO Bank was set up, it set about gaining market share in business lending, leasing and factoring as well as in medium to long term credit. To do this it established the Nationale Bank voor Middellang Krediet business unit to provide medium to long term credit. It established or acquired companies such as Mahuko (Society for leasing) and Amstel Lease for its leasing
Finance lease
A finance lease or capital lease is a type of lease. It is a commercial arrangement where:* the lessee will select an asset ;* the lessor will purchase that asset;...
business. The financing of factoring
Factoring
Factoring can refer to the following:* A form of commercial finance - see factoring ; structured settlement factoring transaction* Factorization, a mathematical concept* Factoring a design, as in code refactoring...
was brought together under the International Factors Nederland B.V., the oldest factoring company in the Netherlands.
In the 1960s and 1970s, like many other banking companies, AMRO saw growth in retail banking and this became a much bigger part of the business. Its wholesale banking was also strengthened by the acquisition of Pierson, Heldring & Pierson (PHP) in 1975. AMRO operated PHP as an independent unit under its existing name. Another acquisition was Utrecht
Utrecht
Utrecht is a city in the Netherlands.The name may also refer to:* Utrecht , of which Utrecht is the capital* Utrecht , including the city of Utrecht* Bishopric of Utrecht* Roman Catholic Archdiocese of Utrecht...
based Bank flaors & Ko ,which had been in existence since 1691. This bank was absorbed under the AMRO Bank brand.
In 1967 AMRO Bank was one of the founders of the consortium bank Banque Européenne de Crédit à Moyen Terme (European bank of long term credit) based in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. The aim was create an entity that was large enough to work at an international level.
Soon after this, with their sights on European integration, AMRO Bank announced plans to collaborate with Belgian Generale Bank with the aim of building a European international bank. However, this project was too ambitious and never managed to get off the ground.
It was only when the Dutch Government announced that it was relaxing its merger rules for financial institutions that ABN
ABN
ABN or abn is a three-letter acronym that may refer to:* IATA airport code for Albina Airport in Albina, Suriname* ABN AMRO, sometimes referred to as "ABN" in shorthand* ABN AMRO Group* ABN Andhra Jyothi, a Telugu language news channel based in India...
and AMRO Bank were able to seize the opportunity to merge and to create a bank large enough to fulfill these ambitions. On 24 August 1990 ABN AMRO
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
was created by the conversion of the shares of both banks into shares of the newly established ABN AMRO Holding N.V.