retail bank
Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Banking servi ...
which operated in
England and Wales
England and Wales () is one of the three legal jurisdictions of the United Kingdom. It covers the constituent countries England and Wales and was formed by the Laws in Wales Acts 1535 and 1542. The substantive law of the jurisdiction is Eng ...
from 1834 until its merger into the
National Westminster Bank
National Westminster Bank, commonly known as NatWest, is a major retail and commercial bank in the United Kingdom based in London, England. It was established in 1968 by the merger of National Provincial Bank and Westminster Bank. In 2000, it ...
in 1970; it continued to exist as a dormant registered non-trading company until 4 July 2017 when it was dissolved. Considered one of the Big Five, it expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies.
History
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
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are ...
banks to be established in the capital. For various reasons, the press, private banking concerns, and the
Bank 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 to act as the English Government's banker, and still one of the bankers for the Government of ...
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 is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
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 seventy offices citywide and almost two hundred in rural counties.
London and County Bank
The Surrey, Kent and Sussex Banking Company had been established at
Southwark
Southwark ( ) is a district of Central London situated on the south bank of the River Thames, forming the north-western part of the wider modern London Borough of Southwark. The district, which is the oldest part of South London, developed ...
in 1836 and soon had branches in places like
Croydon
Croydon is a large town in south London, England, south of Charing Cross. Part of the London Borough of Croydon, a local government district of Greater London. It is one of the largest commercial districts in Greater London, with an extensi ...
,
Brighton
Brighton () is a seaside resort and one of the two main areas of the City of Brighton and Hove in the county of East Sussex, England. It is located south of London.
Archaeological evidence of settlement in the area dates back to the Bronze A ...
,
Maidstone
Maidstone is the largest Town status in the United Kingdom, town in Kent, England, of which it is the county town. Maidstone is historically important and lies 32 miles (51 km) east-south-east of London. The River Medway runs through the c ...
and
Woolwich
Woolwich () is a district in southeast London, England, within the Royal Borough of Greenwich.
The district's location on the River Thames led to its status as an important naval, military and industrial area; a role that was maintained throu ...
. 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:
London County and Westminster Bank
In 1913, the bank formed a subsidiary, London County and Westminster Bank (
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
), which opened branches during and after
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
in
Bordeaux
Bordeaux ( , ; Gascon oc, Bordèu ; eu, Bordele; it, Bordò; es, Burdeos) is a port city on the river Garonne in the Gironde department, Southwestern France. It is the capital of the Nouvelle-Aquitaine region, as well as the prefectur ...
(1917),
Lyon
Lyon,, ; Occitan: ''Lion'', hist. ''Lionés'' also spelled in English as Lyons, is the third-largest city and second-largest metropolitan area of France. It is located at the confluence of the rivers Rhône and Saône, to the northwest of t ...
(1918),
Marseilles
Marseille ( , , ; also spelled in English as Marseilles; oc, Marselha ) is the prefecture of the French department of Bouches-du-Rhône and capital of the Provence-Alpes-Côte d'Azur region. Situated in the camargue region of southern Franc ...
(1918) and
Nantes
Nantes (, , ; Gallo: or ; ) is a city in Loire-Atlantique on the Loire, from the Atlantic coast. The city is the sixth largest in France, with a population of 314,138 in Nantes proper and a metropolitan area of nearly 1 million inhabita ...
(1919). The bank itself also directly established offices in
Madrid
Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
(1917),
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
(1917),
Antwerp
Antwerp (; nl, Antwerpen ; french: Anvers ; es, Amberes) is the largest city in Belgium by area at and the capital of Antwerp Province in the Flemish Region. With a population of 520,504,
(1919),
Brussels
Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
Valencia
Valencia ( va, València) is the capital of the Autonomous communities of Spain, autonomous community of Valencian Community, Valencia and the Municipalities of Spain, third-most populated municipality in Spain, with 791,413 inhabitants. It is ...
(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 was a wholly-owned subsidiary of National Westminster Bank and its predecessors from 1913 to 1989, with branches in London, France, Spain and West Germany.
At the peak of its operations during the 1980s, the bank ...
in 1973. All the
Spanish
Spanish might refer to:
* Items from or related to Spain:
**Spaniards are a nation and ethnic group indigenous to Spain
**Spanish language, spoken in Spain and many Latin American countries
**Spanish cuisine
Other places
* Spanish, Ontario, Cana ...
branches were closed in 1923–24, 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 suffered a
run
Run(s) or RUN may refer to:
Places
* Run (island), one of the Banda Islands in Indonesia
* Run (stream), a stream in the Dutch province of North Brabant
People
* Run (rapper), Joseph Simmons, now known as "Reverend Run", from the hip-hop group ...
. Continuing rumours about its financial position, and a climate of depreciation in
gilt-edged securities
Gilt-edged securities are bonds issued by the UK Government. The term is of British origin, and then referred to the debt securities issued by the Bank of England on behalf of His Majesty's Treasury, whose paper certificates had a gilt (or gilde ...
, 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 ( ga, Banc Uladh) is a large retail bank, and one of the traditional Big Four Irish clearing banks. The Ulster Bank Group is subdivided into two separate legal entities: National Westminster Bank, trading as Ulster Bank (registere ...
(which continued to operate separately), with 170 branches throughout
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
, and in 1918 bought
Parr's Bank
Parr's Bank Limited was a bank that existed from 1782 to 1918. It was founded as Parr & Co. in Warrington, then in the county of Lancashire in the United Kingdom. In 1918 it was acquired by London County and Westminster Bank, and it was thus one ...
, with over 320 offices throughout
England
England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...
. 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 is a district in the West End of London. It is considered a fashionable residential area, and is the location of numerous cultural, intellectual, and educational institutions.
Bloomsbury is home of the British Museum, the largest mus ...
, Parr's Branch of National Westminster Bank at 214
High Holborn
High Holborn ( ) is a street in Holborn and Farringdon Without, Central London, which forms a part of the A40 route from London to Fishguard. It starts in the west at the eastern end of St Giles High Street and runs past the Kingsway and Sou ...
, London.
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
National Provincial Bank was a British retail bank which operated in England and Wales from 1833 until 1970 when it was merged into the National Westminster Bank. It continued to exist as a dormant non-trading company until 2016 when it was vo ...
in 1968, Westminster had 1,400 branches in England alone.
The portcullis used by the bank was one of the familiar badges of King Henry VII and derived from the arms of the royal City of Westminster, which also included the ''fess wavy'', signifying the
River Thames
The River Thames ( ), known alternatively in parts as the The Isis, River Isis, is a river that flows through southern England including London. At , it is the longest river entirely in England and the Longest rivers of the United Kingdom, se ...
, derived from the arms of the County of London. The present National Westminster Bank continues to use the portcullis in its common seal (the official seal kept in accordance with section 40 of the Companies Act).
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
The Manchester and Liverpool District Bank was formed in 1829 and it became one of the leading provincial joint stock banks; its name was shortened to District Bank in 1924. The Bank was acquired by the National Provincial Bank in 1962 but kept ...
(a 1962 National Provincial acquisition), National Provincial and Westminster Bank were fully integrated in the new firm's structure, while
Coutts & Co
Coutts & Co. is a London-headquartered private bank and wealth manager. Founded in 1692, it is the eighth oldest bank in the world. Today, Coutts forms part of NatWest Group's wealth management division. In the Channel Islands and the Isle of ...
. (a 1920 National Provincial acquisition), Ulster Bank and the
Isle of Man Bank
The Isle of Man Bank is a bank in the British Crown dependency of the Isle of Man, providing retail, private and business banking services to the local population. Incorporated in 1865, it has operated as a trading name of RBS International si ...
(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. The statutory process of integration was completed in 1969 and the new company, National Westminster Bank, opened its doors for business on 1 January 1970.National Westminster Bank NatWest Group, Heritage Hub (retrieved 19 August 2020)
See also
*
Westminster (typeface)
Westminster (not to be confused with Westminster Old Style) is a printing and display typeface inspired by the machine-readable numbers printed on cheques and designed by Leo Maggs.Mottram, R. H. ''The Westminster Bank 1836–1936'' Westminster Bank, London, 1936
*Reed, Richard ''National Westminster Bank: A Short History'' National Westminster Bank, London, 1989
Modern Records Centre, University of Warwick
The Modern Records Centre (MRC) is the specialist archive service of the University of Warwick in Coventry, England, located adjacent to the Central Campus Library. It was established in October 1973 and holds the world's largest archive collecti ...