View source for Bank of Scotland

{{short description|Bank based in Edinburgh, Scotland}}
{{about|the commercial and clearing bank|banks in Scotland|List of banks in Scotland|state-owned investment bank|Scottish National Investment Bank|the central bank of England|Bank of England}}
{{Distinguish|Royal Bank of Scotland}}
{{Use British English|date=January 2014}}
{{Use dmy dates|date=June 2018}}
{{Infobox company
| name = Bank of Scotland plc
| native_name = ''Banca na h-Alba'' ([[Scottish Gaelic|Gaelic]])<br>''Bank o Scotland'' ([[Scots language|Scots]])
| type = [[Public company|Public]]
| logo = Bank of Scotland logo.svg
| logo_size = 250px
| image = Bank of Scotland (3476448819).jpg
| image_caption = Headquarters building on [[The Mound]]
| foundation = {{Start date and age|1695|07|17|df=y}}
| location = [[The Mound]]<br>Edinburgh, Scotland, UK
| num_employees = 20,000
| industry = [[Financial services]]
| assets = £359 billion (2016) <ref>{{Cite web|last=Companies House|date=29 November 2020|title=Companies Accounts|url=https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/ZCsXMXoP97jN6z_kaHzxk8uTXmzSmLTh6TITj54nJQA/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Credential=ASIAWRGBDBV3BUZTZCDH%2F20201129%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20201129T222203Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjENv%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCIQCEStCXd%2F1scFOT8g86s0TXzxSHU90RJEp%2B9iY5hbdzggIgCr5YAf%2Ba3%2BihSJ%2Bthb8KNS4w75Ye25%2F2PfsZLD6NyVEqtAMIZBADGgw0NDkyMjkwMzI4MjIiDO1iSHQSbTwsGPxdZyqRA00zkR50EHZ%2FbM5trCmsyXXlPn5hEAv0zY%2FApfYJVgGDbwgSQV1TAZ1B0dnwUbivLvvGPh7jvo%2FyA4q87fxXidhwXkIukGilBUkQs7y6BE8iiib7cO9Ug9yKPPIGZdydSfi%2F9RrzSqkWnfmmL%2BP7GlCAlXK3F3pT%2Fk0k9RVdE8nI%2FrUFTqZUYOWvUcr3hKT4oUKzwZ5xaeapVtobTP3KOnJwUtRI3qFvnvQvkPHjxiPiPxj3s%2BQsPBZgsZDWMb536igrHV4O5oAhPstUdsRQy8iK2CmB59Sv3EqPNE07MRyjA9mgGmAnef7NR4xXEyc1YLTJCwxcUqTuQyfNNa9AZy%2Faa4lNsM5e6eDEbjxswcJjmWe3v0FJ%2FjMkQ8m43%2FLa9TthvNZ2nOBIAatZWWASq5iWy5Wtw2kVJiKLIUNwtNlT%2FfWuUGAe0AHhUACcbSsRTFIUghTW%2B9vncaynvzyJxlFOHAkE61NDbFxXHm%2BDXvcCrou2KvpE%2FEfQGSrPxDBEPWugrAcGgs3ag1UbSIByw4RLMIDfj%2F4FOusBJarQtKpcFAuqFndsCUAsXmdOuZ1UJv3eOJnD6Kn1aRKG5auLlE%2F5FtRnqnTL5ErSM7tF%2BmLsP9XRSeufR8ajTDj49AHdwn9szC%2Fx6pDMOZ0lbTCjvCZZvQj6BYrX5PQErEzOmIxhsSsIXaWDzLG3F68hiC5unMCmXRBN2Z6OqFis2avrCXda%2BoX2oaOgqT1ymSdOjb7dHMUiO9N54L5KEem3QSBh%2FSPm0L9pnUu3V3jnWUhhsOodS6CZkeyc0eP5Vdlndi6TgBkO%2BKErZtqSnnWYRGyvVX1B75XzOrosf%2FHphse4E9AmKy0ToA%3D%3D&X-Amz-SignedHeaders=host&X-Amz-Signature=967311d5b52a30ec2a999e9a8a765c55dd8b48bf5e3984bc12f4cc951d59f379|access-date=29 November 2020|website=Companies House}}</ref>
| products = [[Bank]]ing and [[insurance]]
| parent = [[Lloyds Banking Group]]
| divisions = {{plainlist|
*[[Halifax (United Kingdom bank)|Halifax]]
*[[Birmingham Midshires]]
*[[Intelligent Finance]]}}
| homepage = {{URL|https://www.bankofscotland.co.uk}}
}}
[[File:Bank of Scotland, Bank Street - 2025-04-19 01.jpg|thumb|Aerial view of headquarters building]]

The '''Bank of Scotland plc''' ([[Scottish Gaelic]]: ''Banca na h-Alba'') is a [[commercial bank|commercial]] and [[clearing (finance)|clearing bank]] based in [[Edinburgh]], Scotland, and is part of the [[Lloyds Banking Group]]. The bank was established by the [[Parliament of Scotland]] in 1695 to develop Scotland's trade with other countries, and aimed to create a stable banking system in the country.<ref>{{cite web | url=https://www.lloydsbankinggroup.com/who-we-are/our-heritage/bank-of-scotland-heritage.html | title=Bank of Scotland | access-date=15 May 2022 | archive-date=27 May 2022 | archive-url=https://web.archive.org/web/20220527033230/https://www.lloydsbankinggroup.com/who-we-are/our-heritage/bank-of-scotland-heritage.html | url-status=live }}</ref> It was the first bank to be established in Scotland, and is the [[List of banks in Scotland|oldest operational bank in the country]],<ref>{{cite web |title=BOS - Internet Banking - Unavailable |url=https://www.bankofscotland.co.uk/about-us.html |website=www.bankofscotland.co.uk |access-date=11 February 2025}}</ref> the [[List of oldest banks in continuous operation|ninth oldest bank in continuous operation globally]],<ref>{{cite web |title=10 oldest operational banks in the world |url=https://www.tbsnews.net/world/oldest-operational-banks-world-165169 |website=The Business Standard |access-date=21 June 2024 |language=en |date=30 November 2020}}</ref> as well as the longest continuous issuer of [[banknotes]] in the world.<ref name="History of the Bank of Scotland"/>

With a history dating to the end of the 17th century, the Bank of Scotland was the first bank to have been established in Scotland, and,<ref name="bankofscotland.co.uk">{{cite web |title=BOS - Internet Banking - Unavailable |url=https://www.bankofscotland.co.uk/helpcentre/our-heritage.html |website=www.bankofscotland.co.uk |access-date=1 June 2024}}</ref> it is the [[List of oldest banks in continuous operation|fifth-oldest extant bank]] in the United Kingdom (the [[Bank of England]] having been established one year earlier). It is the only commercial institution created by the Parliament of Scotland, when Scotland was an independent, [[sovereign state]], to remain in existence. It was the first bank in Europe to successfully print its own [[banknote]]s,<ref name="rp19">{{cite book |last1=Perman |first1=Ray |title=The Rise and Fall of the City of Money |date=2019 |publisher=Birlinn |isbn=9781780276236 |page=19}}</ref>  and it continues to print its own [[Banknotes of the pound sterling|sterling banknotes]] under legal arrangements that allow Scottish banks to issue currency.

In June 2006, the [[HBOS Group Reorganisation Act 2006]] was passed by the [[Parliament of the United Kingdom]], allowing the bank's structure to be simplified. As a result, The Governor and Company of the Bank of Scotland became Bank of Scotland [[Public limited company|plc]] on 17 September 2007.<ref>{{cite web|url=https://find-and-update.company-information.service.gov.uk/company/SC327000|title=Bank of Scotland plc|publisher=Companies House|access-date=12 November 2020|archive-date=30 November 2020|archive-url=https://web.archive.org/web/20201130234329/https://find-and-update.company-information.service.gov.uk/company/SC327000|url-status=live}}</ref> Bank of Scotland has been a subsidiary of Lloyds Banking Group since 19 January 2009, when [[HBOS]] was acquired by Lloyds TSB.

==History==

===Establishment===
{{Infobox UK legislation
| short_title           = {{visible anchor|Bank of Scotland Act 1695}}
| type                  = Act
| parliament            = Parliament of Scotland
| long_title            = Act of Parliament for erecting a Bank in Scotland.
| year                  = 1695
| citation              = 1695 c. 88
| introduced_commons    = 
| introduced_lords      = 
| territorial_extent    = 
| royal_assent          = 
| commencement          = 
| expiry_date           = 
| repeal_date           = 
| amends                = 
| replaces              = 
| amendments            = 
| repealing_legislation = 
| related_legislation   = 
| status                = 
| legislation_history   = 
| theyworkforyou        = 
| millbankhansard       = 
| original_text         = 
| revised_text          = 
| use_new_UK-LEG        = 
| UK-LEG_title          = 
| collapsed             = yes
}}

During the 1690s, public finances and economic prospects of the country were largely uncertain, with credit proving difficult to gain and cash being in relative short supply. A group of merchants saw the establishment of a public bank as the solution to the financial issues facing the country at the time,<ref name="History of the Bank of Scotland">{{cite web |title=Lloyds Banking Group - Bank of Scotland |url=https://www.lloydsbankinggroup.com/who-we-are/our-heritage/bank-of-scotland-heritage.html |website=www.lloydsbankinggroup.com |access-date=9 February 2025}}</ref> with The Governor and Company of the Bank of Scotland being established by an [[List of acts of the Parliament of Scotland|act]] of the [[Parliament of Scotland]] on 17 July 1695,<ref name=rampant>{{Cite web |url=http://www.rampantscotland.com/SCM/story.htm |title=Rampant Scotland |access-date=26 October 2005 |archive-date=11 February 2021 |archive-url=https://web.archive.org/web/20210211222625/http://www.rampantscotland.com/SCM/story.htm |url-status=live }}</ref> the Act for erecting a Bank in Scotland, opening for business in February 1696. Although established soon after the [[Bank of England]] (1694), the Bank of Scotland was a very different institution. Whereas the Bank of England was established specifically to finance defence spending by the English government, the Bank of Scotland was established by the [[Privy Council of Scotland|Scottish government]] to support [[Economy of Scotland|Scottish business]], and was prohibited from lending to the government without parliamentary approval.<ref name=rampant/>

[[File:ParliamentHouse18thcenturyEdinburgh.jpg|thumb|left|The bank was established by the [[Parliament of Scotland]], the legislature of the [[Kingdom of Scotland]] in 1695.]]

The founding act granted the bank a monopoly on public [[bank]]ing in Scotland for 21 years, permitted the bank's directors to raise a nominal capital of £1,200,000 [[pound Scots]] (£100,000 [[pound sterling]]), gave the proprietors (shareholders) [[limited liability]], and in the final clause (repealed only in 1920) made all foreign-born proprietors naturalised Scotsmen "to all Intents and Purposes whatsoever".<ref name=rampant/> [[John Holland (banker)|John Holland]] was one of the bank's founders,<ref name=rampant/> and its first chief accountant was [[George Watson (accountant)|George Watson]].<ref>{{Cite book |url=https://books.google.com/books?id=USQkqlHTfnAC&dq=George+Watson+Bank+of+Scotland&pg=PR33 |title=Bank of Scotland by Richard Saville Page XXXIII |isbn=978-0-7486-0757-0 |access-date=25 March 2023 |archive-date=20 June 2023 |archive-url=https://web.archive.org/web/20230620161402/https://books.google.com/books?id=USQkqlHTfnAC&dq=George+Watson+Bank+of+Scotland&pg=PR33 |url-status=live |last1=Saville |first1=Richard |date=1996 }}</ref> Following the establishment of the Bank of Scotland, and the raising of capital funds, the bank was able to provide loans in order to stabilise Scottish businesses and the [[Economy of Scotland|Scottish economy]].<ref name="History of the Bank of Scotland"/>

During its early days of operation, the Bank of Scotland acted as a means of public financial support during tough economic situations. The condition of harvest conditions leading to poor harvests and crops led to food shortages in Scotland during the 1700s, with the Bank of Scotland providing interest-free loans to help purchase meal and grain as a result of the lack of food due to harvest conditions.<ref name="History of the Bank of Scotland"/> The bank was the first bank in [[Europe]] to produce [[banknotes]]. Until the development of banknotes, coinage was the only means of cash, but it was largely scarce and unreliable. The bank developed the idea of paper money, each with a set number of values. Banknotes were initially issued for £5, £10, £20, £50 and £100, all of which were issued from March 1696, with a £1 note being introduced into circulation later. The Bank of Scotland still produces its own banknotes, making the bank the longest continuous banknote issuer in the world.<ref name="History of the Bank of Scotland"/>

===18th and 19th centuries===
[[File:Bank of Scotland Edinburgh 01.jpg|thumb|right|180px|Golden statue of Fame on top of the main dome, Bank of Scotland Head Office, Edinburgh by [[John Rhind (sculptor)|John Rhind]]]]

The Bank of Scotland was suspected of [[Jacobite risings|Jacobite]] sympathies.<ref name=rampant/> Its first rival, the [[Royal Bank of Scotland]], was formed by [[royal charter]] in 1727.<ref name=rampant/> This led to a period of great competition between the two banks as they tried to drive each other out of business.<ref name=rampant/> Although the "Bank Wars" ended in around 1751,<ref name=rampant/> competition soon arose from other sources, as other Scottish banks were founded throughout the country.<ref name=rampant/> In response, the Bank of Scotland itself began to open branches throughout Scotland.

Following the [[Acts of Union 1707|Acts of Union]] in 1707, the bank supervised the reminting of the old Scottish coinage into [[Pound sterling|Sterling]]. It was one of the first banks in Europe to print its own [[banknote]]s, and it continues to print its own [[Banknotes of the pound sterling|sterling banknotes]] under legal arrangements that allow Scottish banks to issue currency.<ref>{{cite news|url=https://www.bbc.co.uk/newsround/51783470|title=Banknotes: Why do Scotland and Northern Ireland have their own money?|date=10 March 2020|newspaper=BBC|access-date=4 August 2022|archive-date=4 August 2022|archive-url=https://web.archive.org/web/20220804170445/https://www.bbc.co.uk/newsround/51783470|url-status=live}}</ref> The bank also took the lead in establishing the security and stability of the entire Scottish banking system, which became more important after the insolvency of [[Alexander Fordyce]] and collapse of the [[Ayr Bank]] in 1772,<ref>{{cite journal | url=https://www.jstor.org/pss/2598492 | jstor=2598492 | title=The Failure of the Ayr Bank, 1772 | last1=Hamilton | first1=Henry | journal=The Economic History Review | date=1956 | volume=8 | issue=3 | pages=405–417 | access-date=30 August 2017 | archive-date=27 February 2024 | archive-url=https://web.archive.org/web/20240227174137/https://www.jstor.org/stable/2598492 | url-status=live }}</ref> in the [[British credit crisis of 1772-1773|crisis]] following the collapse of the London house of [[Neal, James, Fordyce and Down]].

[[Henry Dundas, 1st Viscount Melville|Henry Dundas]] was Governor of the Bank of Scotland from 1790 to 1811. As well as governor, he was also [[Home Secretary]] in [[William Pitt the Younger]]'s government. In 1792, Dundas was successful in passing the Slave Trade Bill in the House of Commons.<ref>{{cite book |last=Cobbett |first=William |author-link= |date=1817 |title=Cobbett's Parliamentary History of England |url=https://archive.org/details/parliamentaryhi03parlgoog |location= |publisher= |page= |isbn=}}</ref> The bank was housed in the southern (1588) section of [[Robert Gourlay (merchant)|the Gourlay house]] on Melbourne Place before being moved to the customised bank building on [[the Mound]] in 1805.<ref>Grant's Old and New Edinburgh vol 1 Ch 12</ref>

The Western Bank collapsed in 1857, and the Bank of Scotland stepped in with the other Scottish banks to ensure that all the Western Bank's notes were paid.<ref>{{Cite book |url=https://books.google.com/books?id=USQkqlHTfnAC&dq=Western+Bank+1857+Bank+of+Scotland+steps+in&pg=PA393 |title=Bank of Scotland by Richard Saville Page 393 |isbn=978-0-7486-0757-0 |access-date=25 March 2023 |archive-date=27 February 2024 |archive-url=https://web.archive.org/web/20240227174141/https://books.google.com/books?id=USQkqlHTfnAC&dq=Western+Bank+1857+Bank+of+Scotland+steps+in&pg=PA393 |url-status=live |last1=Saville |first1=Richard |date=1996 }}</ref> The first branch in London opened in 1865.<ref>{{Cite book |url=https://books.google.com/books?id=USQkqlHTfnAC&dq=1865+Bank+of+Scotland+opens+London+branch&pg=PA413 |title=Bank of Scotland by Richard Saville Page 413 |isbn=978-0-7486-0757-0 |access-date=25 March 2023 |archive-date=27 February 2024 |archive-url=https://web.archive.org/web/20240227174141/https://books.google.com/books?id=USQkqlHTfnAC&dq=1865+Bank+of+Scotland+opens+London+branch&pg=PA413 |url-status=live |last1=Saville |first1=Richard |date=1996 }}</ref>

===20th century===
In the 1950s, the Bank of Scotland was involved in several mergers and acquisitions with different banks. In 1955, the Bank merged with the Union Bank of Scotland.<ref>[http://www.hbosplc.com/media/pressreleases/articles/bos/2007-11-23-BankofScot.asp?section=bos Bank of Scotland Corporate to move back to 110 St Vincent Street] {{webarchive|url=https://web.archive.org/web/20081211203346/http://www.hbosplc.com/media/pressreleases/articles/bos/2007-11-23-BankofScot.asp?section=bos |date=11 December 2008 }}</ref> The Bank also expanded into consumer credit with the purchase of [[Chester]]-based, [[Capital Bank plc|North West Securities]] (Later [[Capital Bank plc|Capital Bank]]).<ref name=timeline>{{Cite web |url=https://news.bbc.co.uk/2/hi/uk_news/scotland/7620761.stm |title=Timeline: Bank of Scotland |date=17 September 2008 |access-date=22 November 2008 |archive-date=20 September 2008 |archive-url=https://web.archive.org/web/20080920001609/http://news.bbc.co.uk/1/hi/scotland/7620761.stm |url-status=live }}</ref> In 1971, the Bank agreed to merge with the [[British Linen Bank]],<ref name=timeline/> owned by [[Barclays|Barclays Bank]]. The merger saw Barclays Bank acquire a 35% stake in the Bank of Scotland, a stake it retained until the 1990s.<ref>{{cite web|author1=Douglasblakey |url=https://www.retailbankerinternational.com/opinion/rbi-750-retrospective-two-thirds-branches-axed/|title=RBI 750 retrospective: two-thirds of branches axed|work=Retail Banker International |date=26 June 2018|access-date=15 December 2021|archive-date=15 December 2021|archive-url=https://web.archive.org/web/20211215191449/https://www.retailbankerinternational.com/opinion/rbi-750-retrospective-two-thirds-branches-axed/|url-status=live}}</ref>

In 1959, the Bank of Scotland became the first bank in the UK to install a computer to process accounts centrally.<ref name=timeline/> At 11:00 on 25 January 1985, the Bank of Scotland introduced HOBS (Home and Office Banking Services), an early example of remote access technology being made available to banking customers. This followed a small-scale service operated jointly with the [[Nottingham Building Society]] for two years but developed by the Bank of Scotland. The new HOBS service enabled customers to access their accounts directly on a television screen, using the [[Prestel]] telephone network.<ref>{{cite web|url=https://archiveshub.jisc.ac.uk/search/archives/62a708db-a44e-3ff7-8933-3540a171d989|title=Bank of Scotland|publisher=Archives Hub|access-date=15 December 2021|archive-date=15 December 2021|archive-url=https://web.archive.org/web/20211215191649/https://archiveshub.jisc.ac.uk/search/archives/62a708db-a44e-3ff7-8933-3540a171d989|url-status=live}}</ref>

===International expansion===
{{main|Bank of Scotland International}}
[[File:Bank of Scotland - geograph.org.uk - 2582222.jpg|thumb|right|Bank of Scotland offices in central Edinburgh]]

The arrival of [[North Sea oil]] to Scotland in the 1970s allowed the Bank of Scotland to expand into the energy sector. The bank later used this expertise in energy finance to expand internationally. The first international office opened in [[Houston]], Texas, followed by more in the United States, [[Moscow]] and Singapore. In 1987, the bank acquired [[Countrywide Bank (New Zealand)|Countrywide Bank]] of New Zealand (later sold to [[Lloyds Bank|Lloyds TSB]] in 1998). In 1995 the bank expanded into the Australian market by acquiring [[Perth]] based [[Bankwest]].<ref name=timeline/><ref>[https://www.afr.com/politics/energetic-scots-buy-bankwest-for-900m-19950921-k6kdl Energetic Scots buy BankWest for $900m] ''[[Australian Financial Review]]'' 21 September 1995</ref>

A controversial period in the bank's history was the attempt in 1999 to enter the United States [[retail banking]] market via a [[joint venture]] with evangelist [[Pat Robertson]]. The move was met with criticism from civil rights groups in the UK, owing to Robertson's controversial views on homosexuality. The bank was forced to cancel the deal when Robertson described Scotland as a "dark land overrun by homosexuals".<ref>{{cite news |url=https://news.bbc.co.uk/2/hi/business/361736.stm |title=Bank drops evangelist |access-date=23 October 2008 |date=5 June 1999 |work=BBC News |archive-url= https://web.archive.org/web/20080925134924/http://news.bbc.co.uk/1/hi/business/the_company_file/361736.stm |archive-date= 25 September 2008 |url-status= live}}</ref>

===HBOS===
{{Main|HBOS}}
[[File:Museum on the mound, Edinburgh (28252011008).jpg|thumb|left|Headquarters of the Bank of Scotland, located on The Mound, at North Bank Street, [[Edinburgh]] (The street is named in honour of the bank having moved there in 1806.)]]

In the late 1990s, the UK financial sector market underwent a period of consolidation on a large scale. Many of the large [[building society|building societies]] were demutualising and becoming banks in their own right or merging with existing banks. For instance Lloyds Bank and TSB Bank merged in 1995 to create [[Lloyds TSB]].<ref>{{Cite web |url=https://query.nytimes.com/gst/fullpage.html?res=9C03EED91339F931A25753C1A963958260 |title=Lloyds Bank to merge with TSB Group |access-date=14 February 2017 |archive-date=28 February 2017 |archive-url=https://web.archive.org/web/20170228175503/https://query.nytimes.com/gst/fullpage.html?res=9C03EED91339F931A25753C1A963958260 |url-status=live }}</ref> In 1999, the Bank of Scotland made a takeover bid for [[National Westminster Bank]].<ref>{{Cite web |url=https://www.independent.co.uk/news/business/news/battle-for-natwest-resumes-as-dti-clears-pound22bn-bank-of-scotland-bid-740657.html |title=Battle for Natwest resumes as DTI clears £22bn Bank of Scotland bid |website=[[Independent.co.uk]] |date=26 November 1999 |access-date=24 August 2017 |archive-date=1 March 2017 |archive-url=https://web.archive.org/web/20170301202004/http://www.independent.co.uk/news/business/news/battle-for-natwest-resumes-as-dti-clears-pound22bn-bank-of-scotland-bid-740657.html |url-status=live }}</ref> Since the Bank of Scotland was significantly smaller than the English-based NatWest, the move was seen as an audacious and risky move. However, [[The Royal Bank of Scotland]] tabled a rival offer, and a bitter takeover battle ensued, with the Royal Bank the victor.<ref>{{Cite web |url=https://news.bbc.co.uk/1/hi/business/637836.stm |title=Bank admits defeat over Natwest |access-date=22 November 2008 |archive-date=26 May 2004 |archive-url=https://web.archive.org/web/20040526053003/http://news.bbc.co.uk/1/hi/business/637836.stm |url-status=live }}</ref>

In 2000, the Bank of Scotland became the first bank in the United Kingdom to introduce the concept of mobile banking, using WAP mobile phones. A simple and basic concept, the system allowed customers to only access account information, but it has been credited since for paving the way for the advancement and increased usage of mobile banking.<ref name="History of the Bank of Scotland"/> The Bank of Scotland was now the centre of other merger opportunities. A proposal to merge with the [[Abbey National]] was explored, but later rejected.<ref>{{Cite web |url=http://www.brandrepublic.com/News/12409/Bank-Scotland-continue-talks-Abbey-National/ |title=Bank of Scotland to continue talks with Abbey National |access-date=22 November 2008 |archive-date=11 December 2008 |archive-url=https://web.archive.org/web/20081211193203/http://www.brandrepublic.com/News/12409/Bank-Scotland-continue-talks-Abbey-National/ |url-status=live }}</ref> In 2001, the Bank of Scotland and the [[Halifax (United Kingdom bank)|Halifax]] agreed a merger to form [[HBOS|HBOS ("Halifax Bank of Scotland")]].<ref>{{Cite web |url=https://news.bbc.co.uk/2/hi/business/1312047.stm |title=Bank of Scotland and Halifax agree merger |date=4 May 2001 |access-date=22 November 2008 |archive-date=21 February 2009 |archive-url=https://web.archive.org/web/20090221215900/http://news.bbc.co.uk/1/hi/business/1312047.stm |url-status=live }}</ref>

In 2006, HBOS secured the passing of the [[HBOS Group Reorganisation Act 2006]], a local act of Parliament that would allow the group to operate within a simplified structure. The act allowed HBOS to make the Governor and Company of the Bank of Scotland a public limited company, Bank of Scotland plc, which became the principal banking subsidiary of HBOS. Halifax plc and [[Capital Bank plc]] transferred their undertakings to Bank of Scotland plc, and although the Halifax brand name was retained, Halifax then began to operate under the latter company's UK banking licence.<ref>{{cite web|url=https://www.financialadvice.net/bank_licence_list_investor_compensation/zone/2107|title=Bank Licence List Investor Compensation|publisher=Financial Advice|access-date=15 December 2021|archive-date=15 December 2021|archive-url=https://web.archive.org/web/20211215192500/https://www.financialadvice.net/bank_licence_list_investor_compensation/zone/2107|url-status=live}}</ref> Capital Bank branding was phased out.

The provisions in the act were implemented on 17 September 2007.<ref>{{Cite web |url=http://www.legislation.gov.uk/ukla/2006/1 |title=HBoS Reorganisation Act 2006 |access-date=13 September 2012 |archive-date=27 February 2024 |archive-url=https://web.archive.org/web/20240227174339/https://www.legislation.gov.uk/ukla/2006/1/enacted |url-status=live }}</ref> In 2008, [[HBOS|HBOS Group]] agreed to be taken over by [[Lloyds Banking Group|Lloyds TSB Group]] during the [[Great Recession]].<ref>[http://www.lloydstsb.com/merger/what_happens_next.asp Lloyds: What happens next?] {{webarchive|url=https://web.archive.org/web/20081026112338/http://www.lloydstsb.com/merger/what_happens_next.asp |date=26 October 2008 }}</ref>

==Central Bank of Scotland== 
{{see|Scottish independence#Currency}}

In the event of [[Scottish independence]], the constitutional role the Bank of Scotland would play remains largely unclear, and whether the bank would become the [[central bank]] of Scotland following independence. One proposal in the event of Scottish independence would be for Scotland to establish a new currency, the Scottish pound, which would be printed by the Central Bank of Scotland.<ref>{{cite web |title='Why does Scotland need its own currency?' and other key questions answered |url=https://www.thenational.scot/politics/23388484.scotland-need-currency-scottish-pound-faqs-answered/ |website=The National |access-date=5 October 2025 |language=en |date=15 March 2023}}</ref> As the Bank of Scotland, along with the other two commercial banks in Scotland – the [[Royal Bank of Scotland]] and [[Clydesdale Bank]] – are permitted to issue their own banknotes of the [[Pound sterling]],<ref>{{cite web |title=Committee of Commercial Banknote Issuers |url=https://www.ukfinance.org.uk/our-expertise/personal-banking/CCBI#:~:text=In%20the%20United%20Kingdom%2C%20however,to%20issue%20their%20own%20banknotes. |website=UK Finance |access-date=5 October 2025 |language=en}}</ref> it would be likely that the Bank of Scotland would retain its ability to do so if it were not to become the central bank of the country.<ref name="Scotland's future: your guide to an independent Scotland">{{cite book |title=Scotland's future: your guide to an independent Scotland |date=2013 |publisher=Scottish Government |location=Edinburgh |isbn=978-1-78412-068-9 |edition=1st publ}}</ref><ref>{{cite web |title=Indy Scotland must have its own currency and central bank on day one |url=https://www.thenational.scot/politics/25302551.indy-scotland-must-currency-central-bank-day-one/ |website=The National |access-date=5 October 2025 |language=en |date=10 July 2025}}</ref> During campaigning ahead of the [[2014 Scottish independence referendum]], the Scottish Government campaigned for Scotland to retain the Pound sterling as its currency and establish a [[currency union]] with the [[United Kingdom]].<ref name="Scotland's future: your guide to an independent Scotland"/>

In subsequent government proposal papers regarding independence, the [[Scottish Government]] has confirmed that the government's preferred method would be that the Bank of Scotland would not become the Central Bank of Scotland, but rather, a new Scottish Reserve Bank would be established instead and assume the role of the central bank of the country. The Bank of Scotland would retain its status as a commercial and clearing bank.<ref>{{cite web |title=Currency and fiscal policy |url=https://www.gov.scot/publications/building-new-scotland-stronger-economy-independence/pages/8/# |website=www.gov.scot |access-date=5 October 2025 |language=en}}</ref>

==Sponsorships==
The Bank of Scotland sponsored the [[Scottish Premier League]] from its inception in 1998, until the end of the 2006–2007 Scottish Premier League season, following its decision to not renew the deal in favour of investing in grassroots sport instead. Additionally, the bank sponsored [[Scottish Athletics]] for a number of years.<ref>{{cite web |title=Bank to end its SPL sponsorship |url=https://news.bbc.co.uk/sport2/hi/football/scot_prem/4835062.stm |website=BBC |access-date=6 February 2025 |date=22 March 2006}}</ref> Since November 2010, the Bank of Scotland Foundation has invested over £32 million to around 2,500 charities in Scotland, reaching roughly 1.2 million people by providing financial support to local services and personal support services.<ref>{{cite web |title=BOS - Internet Banking - Unavailable |url=https://www.bankofscotland.co.uk/about-us/our-foundations.html |website=www.bankofscotland.co.uk |access-date=6 February 2025}}</ref>

== Banknotes ==
{{see also|Banknotes of Scotland}}
===Banknote history===

Although the Bank of Scotland today is not a central bank, it retains the right (along with two other Scottish commercial banks) to issue [[pound sterling]] banknotes to this day. These notes are equal in value to notes issued by the [[Bank of England note issues|Bank of England]], the central bank of the United Kingdom.

The Bank of Scotland was the first European bank to issue paper currency redeemable for cash on demand (which was an extremely useful facility given the poor state of the [[Scottish coinage]] at the end of the 17th century) on a sustainable basis after the earlier failed attempt of the Swedish [[Stockholms Banco]] in 1661–64.<ref name="History of the Bank of Scotland"/> Following the [[Acts of Union 1707|Acts of Union]] in 1707, the bank supervised the reminting of the old Scottish coinage into [[Pound sterling|Sterling]]. Up until the middle of the 19th century, privately owned banks in [[United Kingdom of Great Britain and Ireland|Great Britain and Ireland]] were permitted to issue their own banknotes, and money issued by provincial Scottish,<ref name="bankofscotland">
{{cite web
 |url         = http://www.hbosplc.com/abouthbos/History/BoS_family_tree.asp
 |title       = Bank of Scotland 'family tree'
 |access-date  = 8 October 2007
 |work        = HBOS History
 |archive-url  = https://web.archive.org/web/20070915044806/http://www.hbosplc.com/abouthbos/History/bos_family_tree.asp
 |archive-date = 15 September 2007
 |url-status     = dead
 |df          = dmy-all
}}
</ref> English, Welsh and Irish banking companies circulated freely as a means of payment.<ref name="englishprovincial">
{{cite web
|url= http://homepage.ntlworld.com/trev.rh/Notes/prov.htm
|title= British Provincial Banknotes
|pages= 1–6
|access-date=8 October 2007
 | archive-url= https://web.archive.org/web/20071119023653/http://homepage.ntlworld.com/trev.rh/Notes/prov.htm| archive-date= 19 November 2007 | url-status= live}}
</ref> The Bank of Scotland still produces its own banknotes, and is the longest continuous issuer of banknotes in the world. In 2022, the Bank of Scotland revealed the design of its £100 polymer note. The design was the first to commemorate the contribution of an influential person from Scotland, the [[suffragette]] and medical pioneer, Dr [[Flora Murray]].<ref>{{cite web |title=Lloyds Banking Group - Bank of Scotland - Flora Murray |url=https://www.lloydsbankinggroup.com/insights/who-was-flora-murray.html |website=www.lloydsbankinggroup.com |access-date=9 February 2025}}</ref>

In 1826, there was outrage in Scotland at the attempt of the [[United Kingdom Parliament]] to prevent the production of banknotes of less than five pounds face value. [[Sir Walter Scott]] wrote a series of letters to the ''Edinburgh Weekly Journal'' under the pseudonym "''Malachi [[Malagrowther]]''", which provoked such a response that the government was forced to relent and allow the Scottish banks to continue printing £1 notes.<ref>{{cite web|url=https://www.bbc.co.uk/news/uk-scotland-scotland-politics-22251098|title=Malachi Malagrowther and the Scottish banknote|date=22 April 2013|publisher=BBC|access-date=15 December 2021|archive-date=17 November 2023|archive-url=https://web.archive.org/web/20231117084826/https://www.bbc.co.uk/news/uk-scotland-scotland-politics-22251098|url-status=live}}</ref>

===1995 "Tercentenary" series===
[[Image:BankScotland50.jpg|300px|thumb|The ''Tercentenary Series'' £50 note (1995)]]
Bank of Scotland's previous note issue was in 1995, known as the ''Tercentenary Series'' as they were issued in the year of the three hundredth anniversary of the foundation of the bank. Each denomination features Sir Walter Scott on the front, and on the back are representations of industries that Scotland excels in:

* £5 note featuring a [[vignette (graphic design)|vignette]] of [[Petroleum|oil]] and energy
* £10 note featuring a vignette of [[distillation|distilling]] and brewing
* £20 note featuring a vignette of education and research
* £50 note featuring a vignette of arts and culture
* £100 note featuring a vignette of [[recreation|leisure]] and tourism.

These notes are no longer in circulation.

===2007 "Bridges" series===
[[Image:Bank of Scotland 20 pound note 2007.jpg|thumb|300px|A £20 note of the 2007 issue]]

Bank of Scotland began issuing a new series of banknotes in the Autumn of 2007, which feature the common theme of Scottish bridges.<ref name="scotbanks">{{cite web|url=http://www.scotbanks.org.uk/banknotes_current_bank_of_scotland.php|title=Current Banknotes : Bank of Scotland|publisher=The Committee of Scottish Clearing Bankers|access-date=17 October 2008| archive-url= https://web.archive.org/web/20081003071434/http://www.scotbanks.org.uk/banknotes_current_bank_of_scotland.php| archive-date= 3 October 2008 | url-status= live}}</ref> It will take at least three years for the current issue of Bank of Scotland notes to be phased out of circulation. In keeping with the bank's tradition, the front of the notes depict an image of Sir Walter Scott; the image on the 2007 series is based on the portrait of Scott painted by [[Henry Raeburn]].<ref name="2007-notes">{{cite web|url=http://www.hbosplc.com/media/pressreleases/articles/bos/2007-06-21-BankofScot.asp?section=bos|title=Bank of Scotland to launch new series of banknotes|date=21 June 2007|work=Bank of Scotland press releases|publisher=HBOS plc|access-date=14 October 2008|url-status=dead|archive-url=https://web.archive.org/web/20090126035522/http://www.hbosplc.com/media/pressreleases/articles/bos/2007-06-21-BankofScot.asp?section=bos|archive-date=26 January 2009|df=dmy-all}}</ref>

Some new security features have also been added to the new design. These include a metallic security thread embedded in every banknote, which contains the numerical value of the note and the note's bridge image. A new hologram and foil patch has been introduced on the front of the £20, £50 and £100 notes, which features the Bank of Scotland logo and the numerical value of the note.

* £5 note features the [[Brig o' Doon]]
* £10 note features the [[Glenfinnan Viaduct]]
* £20 note features the [[Forth Bridge]]
* £50 note features the [[Falkirk Wheel]]
* £100 note features the [[Kessock Bridge]]

On 1 March 2018 the Bank of Scotland decided to withdraw all of its paper £5 and £10 notes, and fully replace them with its polymer equivalents (see below).<ref name="CSCB">{{cite web |url=https://www.scotbanks.org.uk/banknotes/bank-of-scotland/the-bridges-series-withdrawn.html |title=The Bridges series – withdrawn |website=scotbanks.org.uk |publisher=Committee of Scottish Clearing Banks |access-date=19 April 2019 |archive-date=18 April 2019 |archive-url=https://web.archive.org/web/20190418233625/https://www.scotbanks.org.uk/banknotes/bank-of-scotland/the-bridges-series-withdrawn.html |url-status=live }}</ref>

===2016 Polymer series===
Bank of Scotland began issuing new banknotes on polymer in 2016, beginning with the £5 note. The main theme of the bridges of Scotland are kept for this series, but have been redesigned to incorporate additional design features. The portrait of Sir Walter Scott by Henry Raeburn is the same as the 2007 issues, but have been shifted from the centre to the right side of the notes. The bank's headquarters, "The Mound" is featured at the centre of the note. The size of the notes for this series is also reduced.<ref>[https://banknotenews.com/files/3d1b6fabd22cb9a769c2c3220910168c-4056.php Bank of Scotland new 5-pound note confirmed] {{Webarchive|url=https://web.archive.org/web/20191107210426/https://banknotenews.com/files/3d1b6fabd22cb9a769c2c3220910168c-4056.php |date=7 November 2019 }} Banknote News (banknotenews.com). 12 October 2016. Retrieved on 5 June 2017.</ref><ref>[https://banknotenews.com/files/b07bdc87b378238c327fcd93987214b9-4375.php Bank of Scotland new 10-pound polymer note unveiled] {{Webarchive|url=https://web.archive.org/web/20191107210448/https://banknotenews.com/files/b07bdc87b378238c327fcd93987214b9-4375.php |date=7 November 2019 }} Banknote News (banknotenews.com). 29 May 2017. Retrieved on 5 June 2017.</ref><ref>[https://banknotenews.com/files/2074fb52c0b31d4e7fe0922c976905b0-5338.php Scotland BOS new 20-pound polymer notes unveiled] {{Webarchive|url=https://web.archive.org/web/20191107210426/https://banknotenews.com/files/2074fb52c0b31d4e7fe0922c976905b0-5338.php |date=7 November 2019 }} Banknote News (banknotenews.com). 7 November 2019. Retrieved on 7 November 2019.</ref>

* [[Bank of Scotland £5 note|£5]] note features [[Brig o' Doon]]
* [[Bank of Scotland £10 note|£10]] note features [[Glenfinnan Viaduct]]
* [[Bank of Scotland £20 note|£20]] note features the [[Forth Bridge]] and a commemorative £20 note features the [[Queensferry Crossing]]
* [[Bank of Scotland £50 note|£50]] note features [[Falkirk Wheel]] and [[The Kelpies]]
* [[Bank of Scotland £100 note|£100]] note features [[Flora Murray]]

== Corporate structure ==

Associated brands include:

* [[Halifax (United Kingdom bank)|Halifax]]
* Intelligent Finance
* [[Birmingham Midshires]]
* Bank of Scotland Corporate 
* [[Capital Bank plc|Capital Bank]] 
* Bank of Scotland Investment Services
* Bank of Scotland Private Banking

== List of governors of the Bank of Scotland ==
[[File:John Dalrymple, 10th Earl of Stair.jpg|thumb|right|180px|[[John Dalrymple, 10th Earl of Stair]], Governor (1870–1903)]]
[[File:6thLordBalfourOfBurleigh (cropped).jpg|thumb|right|180px|[[Alexander Bruce, 6th Lord Balfour of Burleigh]], Governor (1904–1921)]]
# [[John Holland (banker)|John Holland]] 1696–1697
# [[David Melville, 3rd Earl of Leven]] 1697–1728
# [[Alexander Hume, 2nd Earl of Marchmont]] 1728–1740
# [[Charles Hope, 1st Earl of Hopetoun]] 1740–1742
# Colonel John Stratton 1742
# [[John Hay, 4th Marquess of Tweeddale]] 1742–1762
# [[Hugh Hume, 3rd Earl of Marchmont]] 1763–1790
# [[Henry Dundas, 1st Viscount Melville]] 1790–1811
# [[Robert Dundas, 2nd Viscount Melville]] 1812–1851
# [[James Broun Ramsay, 1st Marquess of Dalhousie]] 1851–1860<ref>{{cite book|last=Saville|first=Richard|title=Bank of Scotland: a history, 1695–1995|publisher=Edinburgh University Press|year=1996|page=409|url=https://books.google.com/books?id=USQkqlHTfnAC&q=Governors+of+the+Bank+of+Scotland+Dalhousie&pg=PA409|isbn=978-0-7486-0757-0|access-date=15 October 2020|archive-date=27 February 2024|archive-url=https://web.archive.org/web/20240227174325/https://books.google.com/books?id=USQkqlHTfnAC&q=Governors+of+the+Bank+of+Scotland+Dalhousie&pg=PA409|url-status=live}}</ref>
# [[John Campbell, 2nd Marquess of Breadalbane]] 1861–1862
# [[George Hamilton-Baillie, 11th Earl of Haddington]] 1863–1870
# [[John Dalrymple, 10th Earl of Stair]] 1870–1903
# [[Alexander Bruce, 6th Lord Balfour of Burleigh]] 1904–1921
# William Mure 1921–1924
# [[Sidney Elphinstone, 16th Lord Elphinstone]] 1924–1955
# Sir John Craig 1955–1957
# [[Steven Bilsland, 1st Baron Bilsland]] 1957–1966
# [[Henry Hepburne-Scott, 10th Lord Polwarth]] 1966–1972
# [[Ronald Colville, 2nd Baron Clydesmuir]] 1972–1981
# Sir Thomas Risk 1981–1991
# Sir Bruce Pattullo 1991–1998
# Sir [[Alistair Grant]] 1998–1999
# Sir [[John Calman Shaw|John Shaw]] 1999–2001
# Sir [[Peter Burt]] 2001–2003
# George Mitchell 2003–2006
# [[Dennis Stevenson, Baron Stevenson of Coddenham]] 2006– 2007

== See also ==
*[[Banknotes of Scotland]]
*[[British banknotes]]
*[[List of banks]]
*[[The Royal Bank of Scotland]]
*[[William Paterson (banker)]]
*[[Homelink (Britain)|Homelink]]
*[[Museum on the Mound]]

== References ==
{{reflist}}

== External links ==
*{{Commons category-inline}}
*{{Wikidata-inline}}
* {{Official website}}
** [https://www.if.com/ Intelligent Finance]
*[https://www.lloydsbankinggroup.com/about_us/company_heritage/BOS_Heritage/bank_of_scotland.asp History], from the Lloyds Banking Group website
*[https://www.museumonthemound.com Museum on the Mound] Official page of the company's museum
*{{PM20|FID=co/010964|TEXT=Documents and clippings about the}}

{{Lloyds Banking Group}}{{Economy of Scotland}}{{Navboxes
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{{Scotland topics}}
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