Clydesdale Bank plc is a commercial bank in Scotland. Formed in Glasgow in 1838, this is the smallest of the three Scottish banks. Independent until it was acquired by Midland Bank in 1920, it formed part of the National Australia Bank Group (NAB) between 1987 and 2016. Clydesdale Bank was divested from National Australia Bank in early 2016 and its parent company CYBG plc, London trading and Sydney stock exchange. Another banking business CYBG plc, Yorkshire Bank operates as a trading division of Clydesdale Bank under its banking license.
Like two other Scottish banks, Scottish Bank and Royal Bank of Scotland, Clydesdale Bank has the right to issue its own banknotes.
Video Clydesdale Bank
History
Formation
In March 1838, an advertisement appeared for a new joint-stock banking company in Glasgow, Clydesdale Banking Company. It should be "primarily a local bank - has several branches - but correspondents are everywhere" although it acknowledges that a branch in Edinburgh will be needed. The Bank was duly opened for business in both cities in May 1838. Checkland described the Bank as the creation of "a group of Glasgow businessmen with a middle-class order, a liberal radical... active in government and city charities."
The driving figure behind the formation of the Bank was James Lumsden, a businessman, a board member, a police commissioner and, later, Mr. Provost from Glasgow. Another member of the founding committee, Henry Brock, became the first manager of the Bank. Brock is from a merchant family, an accountant and co-founder of the Savings Bank of Glasgow. Despite the declaration in advertising, in the year after its establishment, the Bank opened three Glasgow branches as well as the first state branches in Campbeltown and Falkirk; the other seven had been opened in 1844. This was complemented by the acquisition of Greenock Union Bank; formed in 1840, it has four branches in the interior of Glasgow.
Expansion
After the purchase of the Greenock Union, there was little change in the Bank's structure and there were still only 13 branches in 1857. That year, Clydesdale became the first Scottish bank to produce a printed balance sheet, and it showed assets of Ã, Â £ 2.7m and net income Ã, Â £ 70,000. The public disclosure of his strength stood up well, as it was only a few months later the Central Bank of Scotland closed its doors, following the next day with the first closing of City of Glasgow Bank. Clydesdale acquired not only customers, but 13 branches from the West. A few months later came the acquisition of Edinburgh and Glasgow Bank , which has been undermined by the same economic disorder. The Edinburgh & amp; Leith Bank, as it was originally, was established in 1838 "for the interest of the 'industrious middle class'" and had purchased Scottish Southern Bank Dumfries in 1842 and Glasgow Joint Stock Bank in 1844, the latter causing a change of name to Edinburgh & Glasgow Bank. Bad lending in the period 1845-47, particularly to Australia, robbed Bank for the next ten years and was eventually taken over by Clydesdale for empty consideration; Clydesdale maintains 19 of its 27 offices. Five years later, in 1863, Clydesdale acquired more successful Eastern Bank of Scotland Clydesdale, also founded in 1838. Based in Dundee, it has two separate offices and councils, one in Dundee , Other Edinburgh. Before opening for the business it earned Dundee Commercial Bank to serve as Dundee's office. Difficulties with two councils working together led to the Edinburgh bank being closed and the East becoming the bank of Dundee in essence; his acquisition gave Clydesdale his first interest in the north of the Tay River.
Much of the growth in the Bank's network comes from acquisitions and management remains cautious about direct branch expansion. However, in 1865, a committee was formed to see prospects and 16 branches opened in two years. In 1874 Clydesdale went south of the border and opened three branches in Cumberland but this was seen as following existing trading rather than making a special effort to enter the UK market. Indeed, Clydesdale was one of the last Scottish banks to acquire the London office (1877). In 1878, the City of Glasgow Bank failed for the second time, leading again an increase in the Clydesdale deposit and the acquisition of nine Glasgow branches. The scale of the collapse led to further debate about the desirability of limited liability and, following the law in 1879 (allowing unlimited liability for shares), Clydesdale Bank was listed as a limited liability company in 1882.
Reid describes the period 1890-1914 as "quiet years," but that does not impede the continuous expansion of the branch network - from 92 to 153. It marks the end of Clydesdale's independent existence. In 1917 the Bank was approached by London City and Midland (later Midland Bank) and, although initially refused, Clydesdale Bank was sold in 1920. However, it continued to operate independently and was always referred to as an affiliate, not a subsidiary. The Glasgow banks suffered more than others in the distressed economy of the interwar period and from becoming the largest lender in Scotland in 1920, falling to fifth place in 1939. Nevertheless, the Bank continues to open branches, especially in those areas which enjoyed export growth, and the network increased from 158 in 1919 to 205 in 1939.
Midland Era
Midland also acquired North of Scotland Bank in 1923 but management Aberdeen strongly rejected any attempts to join Clydesdale. However, the competitive market that changed after the Second World War meant that the two banks could not remain separate and in 1950 they merged to become Clydesdale and North of Scotland Bank (soon shortened to Clydesdale Bank). Clydesdale has 189 branches and North Scotland 161, covering 221 cities between them. Of the eight Scottish banks, Clydesdale is the third largest deposit, North is the smallest. The merged banks became Scotland's largest in terms of deposits, advances and branches. However, in 1969, mergers elsewhere have reduced the number of Scottish banks to three with Clydesdale now being the smallest. Midland needs to rationalize the enlarged Clydesdale but face resistance. Midland also needed additional capital and the solution to both challenges was to sell Clydesdale (along with Irish subsidiary Midland) to National Australia Bank in 1987.
National Australia Bank Group
In 1989 National Australia Bank bought Clydesdale bank for  £ 420 million. Fred Goodwin, an accountant who works for Touche Ross, works on acquisitions. In 1995 Goodwin, with little direct banking experience, was appointed CEO of Clydesdale until 1997. During this period Goodwin earned the nickname "Fred the shred" for his aggressive attitude in dealing with staff.
In September 2013 the bank was fined Ã, Â £ 8.9 million after miscalculation of mortgage payments of more than 42,000 subscribers. In March 2015 the House of Commons committee on Treasury Select said in a behavioral report that they have evidence that Clydesdale Bank has mis-sold unregulated Special Business Loans and that the bank's own internal review of sales errors has serious and less transparent flaws. In April 2015 Clydesdale was fined Ã, Â £ 20.7m the largest of its kind imposed by the Financial Conduct Authority for a misstatement of PPI insurance sales.
CYBG plc
National Australia Bank confirmed in October 2014 that it plans to leave the UK, and is considering options for Yorkshire and Clydesdale Banks, including a possible list of stock markets. In October 2015, NAB confirmed it will float Clydesdale Bank and Yorkshire Bank on the London Stock Exchange (LSE) in February 2016 through an initial public offering, with the aim of increasing Ã,  £ 2 billion. The newly formed bank holding company, CYBG plc commenced conditional trading on the LSE and the Australian Stock Exchange on February 3, and began trading unconditionally from 8 February. The 180p flotation share price means that National Australia Bank estimates a loss of  £ 2 billion in sales and should make a provision of around £ 1.7bn to cover claims for product sales errors.
In March 2016 CYBG announced the closure of 28 branches as a cost-saving measure. The following month, CYBG announced the closure of 9 Clydesdale branches and 17 Yorkshire Bank branches.
Maps Clydesdale Bank
Banknote
History of banknotes
Until it was prevented by the Charter of the Bank Act 1844, private banks in England and Ireland were allowed to issue their own banknotes, and money spent by Scottish, British, Welsh and Irish provincial banks circulated freely as a means of payment. While the Bank of England has finally obtained a monopoly to issue banknotes in England and Wales, the banks in Scotland and Northern Ireland retained the right to issue their own paper money and continue to do so to this day. In Scotland, Clydesdale Bank, along with The Royal Bank of Scotland and Bank of Scotland, still prints its own paper money.
2009 issue
The current design was released in fall 2009. The front design featured the famous Scots while the reverse design featured the UNESCO World Heritage Site of Scotland.
Previous issue
The previously recorded Clydesdale series each depict a famous person from Scottish history:
- 5 pound notes featuring Robert Burns on the front and a mouse field sketch of Burns poem To a Mouse on the back
- 10 pound notes featuring Mary Slessor on the front and a sketch map of Calabar and African missionary scenes on the back
- 20 pound note featuring Robert the Bruce on the front and a Bruce sketch riding with Monymusk Reliquary with Stirling Castle background behind
- 50 pounds featuring Adam Smith on the front and a sketch of industrial tools with a sailboat background behind
- 100 pound notes featuring Lord Kelvin in front and a sketch of Glasgow University behind
A picture of Adam Smith also featured on the  £ 20 note issued in 2007 by the Bank of England, giving Smith a unique status of being the only person to feature on banknotes issued by two different UK banks, and the first Scot to appear on Bank of England banknotes.
Old problem
Clydesdale Bank stopped issuing  £ 1 worth of money in the late 1980s. The latter has a Robert the Bruce image, while a contemporary record worth 20 pounds has a picture of Lord Kelvin.
The £ 10 note issued from 1971 gave birth to Scottish explorer David Livingstone with palm tree leaves and African tribal illustrations behind. The next issue shows Livingstone against the backdrop of his Zambezi expedition map, showing the Zambezi River, Victoria Falls, Lake Nyasa and Blantyre, Malawi; on the contrary, African characters were replaced with images of Livingstone's birthplace in Blantyre.
Banknote warning
Sometimes Bank Clydesdale issued a special warning banknote to mark certain occasions or to celebrate famous people. These records are much sought after by collectors and they rarely remain in circulation long. Examples to date include:
- a £ 5 was published in 1996 to commemorate Robert Burns's poem. At the front of the note there is an over-print of his poem over the portrait.
- a £ 10 was released in 1997 to commemorate Mary Slessor's work. Behind the note is a map of Calabar and Mary Slessor with a group of Africans.
- £ 20 to the Commonwealth Heads of Government Meeting in Edinburgh, October 1997, reveals Edinburgh International Conference Center where the meeting was held, along with Edinburgh Castle in the background and the new Clydesdale Bank building in Tollcross, Edinburgh
- an Ã, Â £ 20 note to mark the celebration of Glasgow as the City of Architecture and Design of England, featuring a portrait of architect Glaswegian Alexander "Greece" Thomson; the reverse is an illustration of the Lighthouse building by Charles Rennie Mackintosh and the dome of Thomson's Holmwood House (1999)
- a £ 20 to mark the 700th anniversary of Robert the Bruce's coronation, featuring the Symbol used by Bruce on the front and the narration to commemorate the anniversary behind
- a Ã, Â £ 10 note to mark the bank sponsor of the Scottish Commonwealth Games team, describes the team logo on the front, and behind the montage of all events in the match (2006)
- a £ 5 note featuring a portrait of Scottish civil engineer Sir William Arrol and a picture of the Forth Bridge to mark the 125th anniversary of the construction of the bridge; this problem is noted because it is printed on polymers rather than paper (see below).
Polymer banknote
In March 2015, Clydesdale Bank became the first bank in the UK to issue polymer banknotes. The £ 5 warning note, issued to commemorate the 125th anniversary of the construction of the Fourth Bridge, was printed by De La Rue and was the first in Europe to use the safety features of the company's "Safeguard" polymer substrate. This note also uses the "Spark Orbital" security feature that illustrates the Scottish reflective map above the transparent "window" of the banknote.
Although the issue of Clydesdale 2015 was the first plastic banknotes to be published in the United Kingdom, this was not the first polymer paper money to be issued in the UK - in 1999, Northern Bank (now Danske Bank) issued a series of polymers Ã, Â £ 5 notes depicting US Space Shuttle. The Bank of England issued a polymer Ã, Â £ 5 note for the first time in September 2016.
Commonwealth Games
In March 2005, Clydesdale Bank became one of the official partners of the Scottish Commonwealth Games Team, at the Commonwealth Games 2006 in Melbourne, Australia. The sponsorship is built on the relationship formed by its parent, NAB Group, which is one of Game's main sponsors and key partners with the Australian team, while twin companies, Bank of New Zealand, have joined forces to support the national team. The bank also released a series of Ten Pound notes (Ã, Â £ 10) with themes related to the Commonwealth Games for the event.
See also
- Pound sterling papers
References
External links
- Official website
- Clydesdale Banknote
- Documents and clippings on Clydesdale Bank at 20th Century Press Archives from the German National Library of Economics (ZBW).
Source of the article : Wikipedia
0 Comments