Central Bank of Scotland (1834-1868)
Selection of Central Bank of Scotland notes
The Central Bank of Scotland was formed in Perth in 1834 as a joint-stock banking company, the sixth of this type of company to be formed in Scotland since 1810 and the first of its kind in Perth. It was never a very large bank and initially operated with a working capital of only £79,125.
The Central Bank was financially crippled by 1864 and the Bank of Scotland, which had been helping the ailing bank for some years, assumed control of some seven of its nine Perthshire branches.
By 1868, the Central Bank's debts amounted to £51,525 and it sold its liabilities and assets to Bank of Scotland. However, a minority of Central Bank shareholders were unwilling to sell their shares. This committee of Central Bank shareholders continued to meet for a further 12 years, during which time they reduced the Central Bank's debts to £25,591. In 1880, the committee met with Bank of Scotland, who generously awarded the Central's surviving shareholders a sum of £5,375 (i.e. £2 3s per share).
The Central Bank of Scotland was a good purchase for Bank of Scotland giving it a secure footing among the Perthshire farmers and landowners.
Further Information
• Archival records relating to the Central Bank of Scotland are held by HBOS Group Archives.
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