Our Story
We are one of the oldest banks in the UK and our extraordinary heritage also encompasses the histories of hundreds of constituent companies.
1831 to 1938
- Continuing expansion
- In the 1830s we began to establish a wider branch network and in 1864 negotiated our very first acquisition, buying Dundee Banking Co. As the 19th century progressed, it became increasingly obvious that the City of London was fast becoming a major centre of international business and finance, so in 1874 we opened an office in Bishopsgate, at the heart of the City.
- The Bank at war
- By 1910 we had a network of 158 branches and employed 900 staff, but the outbreak of the First World War in 1914 brought new challenges. Banks became involved in government war loans and trading controls, and also had to cope with staff shortages. To keep banks running while male staff were away on active service, women were employed in large numbers for the first time.
- Peace and progress
- In the years after the return of peace in 1918, there was a series of major bank mergers and acquisitions in Britain. This environment helped us to pursue a strategy of growth in England. We acquired the long-established Drummonds Bank in London in 1924 and Williams Deacon's Bank, with its large network of branches in the north-west of England, in 1930.
- How old is the Royal Bank?
-
The Royal Bank of Scotland itself was established by royal charter on 31 May 1727. Some of our constituent businesses are even older, dating back as far as the 1580s. You can learn more about them at RBS Heritage On-line.
- Is it true that Scottish banknotes are not legal tender?
-
Yes, it is - but Bank of England notes aren't legal tender in Scotland either. Officially, the phrase 'legal tender' means money that a person is obliged to accept if offered it in payment of a debt. Under Scottish law, that does not include banknotes, which are classified as 'legal currency' but not 'legal tender'.
The only historical exception was during the two world wars, when as a temporary measure the government made banknotes legal tender in Scotland, as a way of reinforcing people’s trust in them. This was important in a time of shortages, when the government needed to be sure that people would not hoard gold.