Algemene Bank Nederland
Encyclopedia
Algemene Bank Nederland (ABN) was a Dutch bank that became one of the main predecessors in ABN AMRO
. It was created in 1964 when the Nederlandsche Handel-Maatschappij
merged with De Twentsche Bank. In 1991 ABN Bank merged with AMRO Bank
(Amsterdamsche Rotterdamsche Bank) to form ABN AMRO
Bank.
(Netherlands Trading Society) and Twentsche Bank (TB) merged to form ABN Bank on 4 June 1964. An important reason for the merger was the international trend towards concentration. Banks were obliged to scale up their operations. The extensive international network of NTS and the strong Dutch home base of TB, notably in stockbroking and foreign exchange dealing, complemented each other perfectly. Another reason for joining forces was the past involvement of the two banks in developing the textile industry in the Twente
region of the Netherlands
. NTS had been sharing the running expenses of TB’s branch in London (which opened in 1858) since 1953.
(HBU) with its strong position in South America gave the international network a more balanced structure. The Dutch branch network of ABN Bank was expanded substantially from 1964 onwards in step with the growing significance of retail banking. The acquisition of Bank Mees & Hope in 1975 reflected ABN Bank’s diversification strategy since the chief strength of BMH was international commodity finance. After the take over BMH continued to operate independently under its own name. Kingma’s Bank of Leeuwarden, which BMH had acquired in 1971, was transferred to ABN Bank in early 1981 and continued its operations under the name of ABN/Kingma’s Bank. ABN Bank was also active in hire-purchase finance. In 1967 it acquired Industrieele Disconto Maatschappij in which it already held a minority interest through TB.
The independent stockbroking subsidiary Nachenius, Tjeenk & Co, a 1991 amalgamation of two earlier (1977) aquasitions, Weduwe Tjeenk & Co (est. 1810) and Nachenius & Dudok van Heel (est. 1797), gave ABN Bank a foothold in the private banking market.
in 1991.
An important acquisition occurred in 1979 with the take-over of Chicago- based LaSalle National Bank. This acquisition laid the foundation for what would become the second home market of the bank. Founded in 1927 as National Builders Bank of Chicago, LaSalle Bank gave ABN its first firm foothold in the US Midwest. In 1990 Exchange Bancorp of Chicago was incorporated in LaSalle.
ABN also stepped up its activities in Europe
. In April 1980 it obtained a majority interest in Banque de Neuflize, Schlumberger, Mallet (NSM) of Paris
. With roots dating back to 1667, NSM was one of the oldest and prestigious private banks in France. ABN Bank’s Parisian subsidiary Banque Jordaan & Cie (in which TB had held an interest since 1909) became part of NSM. NSM acquired Banque Demachy in 1999 to become NSMD.
Although ABN Bank had a strong international network of its own, it chose to cooperate with other European banks. The Associated Banks of Europe Corporation (ABECOR) was founded in Brussels in 1972 by ABN Bank and three other banks keen to initiate innovations in banking. ABECOR established Banque de la Société Financière Européenne in Paris which works in the field of medium-term loans. ABN Bank was also involved in setting up Society for Worldwide Interbank Financial Telecommunication
(SWIFT), in Brussels. Computer links between affiliated banks have greatly accelerated international transactions.
decided to approach the challenging new era with combined forces. The merger was completed rapidly after ABN AMRO Holding N.V. made a successful bid for the shares of both banks in August 1990. On September 22, 1991 the new ABN AMRO
Bank was established, with head office in Amsterdam.
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...
. It was created in 1964 when the Nederlandsche Handel-Maatschappij
Nederlandsche Handel-Maatschappij
The Netherlands Trading Society was a Dutch trading company established in 1824 by King Willem I of the Netherlands to promote and develop trade, shipping and agriculture...
merged with De Twentsche Bank. In 1991 ABN Bank merged with AMRO Bank
AMRO Bank
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...
(Amsterdamsche Rotterdamsche Bank) to form 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...
Bank.
Merger motives
Nederlandsche Handel-MaatschappijNederlandsche Handel-Maatschappij
The Netherlands Trading Society was a Dutch trading company established in 1824 by King Willem I of the Netherlands to promote and develop trade, shipping and agriculture...
(Netherlands Trading Society) and Twentsche Bank (TB) merged to form ABN Bank on 4 June 1964. An important reason for the merger was the international trend towards concentration. Banks were obliged to scale up their operations. The extensive international network of NTS and the strong Dutch home base of TB, notably in stockbroking and foreign exchange dealing, complemented each other perfectly. Another reason for joining forces was the past involvement of the two banks in developing the textile industry in the Twente
Twente
Twente is a non-administrative region in the eastern Netherlands. It encompasses the most urbanised and easternmost part of the province of Overijssel...
region of the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. NTS had been sharing the running expenses of TB’s branch in London (which opened in 1858) since 1953.
Domestic expansion, 1967-1991
The December 1967 acquisition of the Hollandsche Bank-UnieHollandsche Bank-Unie
Hollandsche Bank-Unie was a second-tier domestic bank in the Netherlands which was absorbed by Deutsche Bank in 2010, but one with a fascinating international history.-Establishment:...
(HBU) with its strong position in South America gave the international network a more balanced structure. The Dutch branch network of ABN Bank was expanded substantially from 1964 onwards in step with the growing significance of retail banking. The acquisition of Bank Mees & Hope in 1975 reflected ABN Bank’s diversification strategy since the chief strength of BMH was international commodity finance. After the take over BMH continued to operate independently under its own name. Kingma’s Bank of Leeuwarden, which BMH had acquired in 1971, was transferred to ABN Bank in early 1981 and continued its operations under the name of ABN/Kingma’s Bank. ABN Bank was also active in hire-purchase finance. In 1967 it acquired Industrieele Disconto Maatschappij in which it already held a minority interest through TB.
The independent stockbroking subsidiary Nachenius, Tjeenk & Co, a 1991 amalgamation of two earlier (1977) aquasitions, Weduwe Tjeenk & Co (est. 1810) and Nachenius & Dudok van Heel (est. 1797), gave ABN Bank a foothold in the private banking market.
Global expansion, 1972-1991
The bank also continued its international expansion and in September 1977 the three former Nederlandsche Handel-Maatschappij branches in Saudi Arabia were incorporated in a new bank, Albank Alsaudi Alhollandi in Riyadh. This bank steadily increased its number of branches and changed its name to Saudi Hollandi BankSaudi Hollandi Bank
The Saudi Hollandi Bank is a bank based in Saudi Arabia. It was the first operating bank in the Kingdom of Saudi Arabia and was originally founded in 1926 as a branch of the Netherlands Trading Society.-History:...
in 1991.
An important acquisition occurred in 1979 with the take-over of Chicago- based LaSalle National Bank. This acquisition laid the foundation for what would become the second home market of the bank. Founded in 1927 as National Builders Bank of Chicago, LaSalle Bank gave ABN its first firm foothold in the US Midwest. In 1990 Exchange Bancorp of Chicago was incorporated in LaSalle.
ABN also stepped up its activities in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. In April 1980 it obtained a majority interest in Banque de Neuflize, Schlumberger, Mallet (NSM) of Paris
Paris
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...
. With roots dating back to 1667, NSM was one of the oldest and prestigious private banks in France. ABN Bank’s Parisian subsidiary Banque Jordaan & Cie (in which TB had held an interest since 1909) became part of NSM. NSM acquired Banque Demachy in 1999 to become NSMD.
Although ABN Bank had a strong international network of its own, it chose to cooperate with other European banks. The Associated Banks of Europe Corporation (ABECOR) was founded in Brussels in 1972 by ABN Bank and three other banks keen to initiate innovations in banking. ABECOR established Banque de la Société Financière Européenne in Paris which works in the field of medium-term loans. ABN Bank was also involved in setting up Society for Worldwide Interbank Financial Telecommunication
Society for Worldwide Interbank Financial Telecommunication
The Society for Worldwide Interbank Financial Telecommunication operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions...
(SWIFT), in Brussels. Computer links between affiliated banks have greatly accelerated international transactions.
European challenge, 1990-1991
With the coming prospect of the internal European market from 1992, ABN Bank and Amro BankAMRO Bank
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...
decided to approach the challenging new era with combined forces. The merger was completed rapidly after ABN AMRO Holding N.V. made a successful bid for the shares of both banks in August 1990. On September 22, 1991 the new 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...
Bank was established, with head office in Amsterdam.