Royal Bank of Scotland Group PLC, RBS:LSE summary - …
Elsewhere in Scotland some banking services such as discounting and exchange, were provided by merchants. As the pace of economic change gathered speed, the demand for banking services grew and it was not long before other organisations developed to fill the apparent void.
Org Chart RBS - Royal Bank of Scotland - The Official Board
The Bank of Scotland was established by Act of the Scottish Parliament which included the unusual privilege that foreign investors in the Bank "shall be and become naturalised Scotsmen to all intents and purposes whatsoever". The Act granted the Bank of Scotland a monopoly of public banking for twenty-one years during which time its dividends were to be exempted from tax. This monopoly was subsequently allowed to lapse - a significant development since it allowed the future establishment of other joint-stock banks. In consequence banking in Scotland developed differently from banking in England where one bank, the Bank of England was in a dominant position over the other, smaller banks. Even before the loss of its monopoly the Bank of Scotland was faced by a rival.
It is one of the peculiarities of history that while it was a Scotsman, William Paterson, who prompted the establishment of the Bank of England, it was an Englishman, John Holland, a London merchant, who was most closely association with the foundation of the Bank of Scotland. Holland went on to serve as the Scottish bank´s first Governor although most of the support for the new company came from citizens of Edinburgh or from Scots settled in London.
Royal Bank of Scotland (LON:RBS) SUMMARY ..
In 1844, after another period of severe financial crisis, Sir Robert Peel took advantage of a review of the Bank of England´s Charter to regulate the issue of notes. The Banknote (Scotland) Act was passed in 1845 and this Act (with some later amendments) regulates today´s note issue by the Scottish banks. The banks were permitted to issue notes to the extent of the average circulation for the year to 1 May 1845 without any backing or cover of coin or security. Today that privilege seems very small indeed. For the three Scottish banks which today issue their own banknotes only £3m comes under that privilege out of nearly £1,800m in circulation. All the rest has to be covered at the Bank of England by non-interest bearing deposits or by the banks´ own holdings of Bank of England notes or coin. But restrictions on note issues were placed on the English banks so that by the early part of the 20th century only the bank of England was left issuing notes south of the border.
Royal Bank of Scotland (RBS) | ISOwatch
A Parliamentary enquiry was set up specifically to enquire into the issue of bank notes in Scotland and Ireland but, more generally, to enquire into the whole system of banking. The Government had planned to abolish the right of Scottish banks to issue notes under £5 - a right which they had always enjoyed. Such was the clamour from Scotland that Parliament appointed a committee of enquiry which found that Scottish banking was-
Group structure for ROYAL BANK OF SCOTLAND …
The country’s banking system was quite stable even before the Bank of Canada was established, mainly thanks to its branch banking structure, and showed little interest in central banking in the early 1900s.
the Royal Bank of Scotland; and the Clydesdale Bank.
But the development of banks and bank notes was not always smooth as we saw earlier and in 1826 another threat to the issue of the Scottish £1 notes arose. Following the failure of 60 banks in England with considerable losses to the public an Act was passed forbidding the circulation of notes under £5 in England. The threat to the £1 notes - the only paper currency familiar to the great masses of the Scottish people - aroused widespread criticism especially as only two banks in Scotland had failed. Sir Walter Scott writing as Sir Malachi Malagruther came to the defence of Scottish banking. Members of Parliament, the Press and a host of pamphleteers clamoured against confirming to the English style. Of course, Sir Walter Scott´s bankruptcy at the time may have encouraged him to help the banks!