British Linen Bank
Encyclopedia
The British Linen Bank was a commercial bank
based in Edinburgh
, Scotland
. It was acquired by the Bank of Scotland
in 1969 and served as the Bank's merchant bank
arm from 1977 until 1999.
The Bank traces its roots to the creation of the British Linen Company which was formed in 1746 by a Royal Charter
from King George II
. Although a Scottish organisation, the prefix "British" was used instead of Scottish due to the suspicion aroused by all things Scottish after the Jacobite Rising
of 1745. The initial aim of the Company was to promote the linen industry, although it soon moved into banking and issued its first notes in 1747. In 1837, the Company acquired the Paisley Banking Company.
Originally based in Edinburgh
, the Company began to expand throughout Scotland, opening 9 branches outside the capital. In 1906 it formally changed its name to the British Linen Bank.
period, a wave of consolidation in the UK banking market so many of the smaller Scottish banks acquired by larger rivals from England. In 1919, the British Linen Bank was acquired by Barclays Bank based in London
, although it retained a separate board of directors and continued to issue its own bank notes.
In 1969, the Bank of Scotland
agreed a deal with Barclays to acquire the British Linen Bank, with Barclays taking a 35% stake in the enlarged Bank.
headquarters building on Ingram Street was demolished by the Bank of Scotland to make way for a concrete office building which was built in 1971.
The Act however allowed British Linen Bank to continue as a separate company, and in 1977 the Bank resumed as the merchant bank arm of the Bank of Scotland.
However in 1999, the Bank of Scotland decided to stop using the British Linen Bank name, renaming its merchant bank activities as Bank of Scotland Treasury Services, later HBOS Treasury Services following the Bank's merger with Halifax plc to form HBOS
.
In April 2000 the British Linen Bank finally closed its headquarters doors at 4 Melville Street, Edinburgh.
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...
based in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, Scotland
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...
. It was acquired by 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...
in 1969 and served as the Bank's merchant bank
Merchant bank
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to....
arm from 1977 until 1999.
Foundation
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...
from King George II
George II of Great Britain
George II was King of Great Britain and Ireland, Duke of Brunswick-Lüneburg and Archtreasurer and Prince-elector of the Holy Roman Empire from 11 June 1727 until his death.George was the last British monarch born outside Great Britain. He was born and brought up in Northern Germany...
. Although a Scottish organisation, the prefix "British" was used instead of Scottish due to the suspicion aroused by all things Scottish after the Jacobite Rising
Jacobite rising
The Jacobite Risings were a series of uprisings, rebellions, and wars in Great Britain and Ireland occurring between 1688 and 1746. The uprisings were aimed at returning James VII of Scotland and II of England, and later his descendants of the House of Stuart, to the throne after he was deposed by...
of 1745. The initial aim of the Company was to promote the linen industry, although it soon moved into banking and issued its first notes in 1747. In 1837, the Company acquired the Paisley Banking Company.
Originally based in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, the Company began to expand throughout Scotland, opening 9 branches outside the capital. In 1906 it formally changed its name to the British Linen Bank.
Mergers
In the post World War IWorld 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...
period, a wave of consolidation in the UK banking market so many of the smaller Scottish banks acquired by larger rivals from England. In 1919, the British Linen Bank was acquired by Barclays Bank based in 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...
, although it retained a separate board of directors and continued to issue its own bank notes.
In 1969, 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...
agreed a deal with Barclays to acquire the British Linen Bank, with Barclays taking a 35% stake in the enlarged Bank.
Merchant Bank
The merger with the Bank of Scotland was finalised with the Bank of Scotland Order Confirmation Act 1970, confirming the transfer of the assets and liabilities of the British Linen Bank to the Bank of Scotland, and the two were quickly integrated - for example the British Linen Bank's GlasgowGlasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
headquarters building on Ingram Street was demolished by the Bank of Scotland to make way for a concrete office building which was built in 1971.
The Act however allowed British Linen Bank to continue as a separate company, and in 1977 the Bank resumed as the merchant bank arm of the Bank of Scotland.
However in 1999, the Bank of Scotland decided to stop using the British Linen Bank name, renaming its merchant bank activities as Bank of Scotland Treasury Services, later HBOS Treasury Services following the Bank's merger with Halifax plc to form HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
.
In April 2000 the British Linen Bank finally closed its headquarters doors at 4 Melville Street, Edinburgh.