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51-415: The Trustee Savings Bank ( TSB ) was a British financial institution that operated between 1810 and 1995 when it was merged with Lloyds Bank . Trustee savings banks originated to accept savings deposits from those with moderate means. Their shares were not traded on the stock market but, unlike mutually held building societies , depositors had no voting rights; nor did they have the power to direct

102-447: A 70% equity interest in the share capital, effected through a scheme of arrangement. The new bank commenced trading in 1999, after the statutory process of integration was completed. On 28 June, TSB Bank plc transferred engagements to Lloyds Bank plc which then changed its name to Lloyds TSB Bank plc; at the same time, TSB Bank Scotland plc absorbed Lloyds' three Scottish branches becoming Lloyds TSB Scotland plc. The combined business formed

153-506: A loose association, with £2,806 million in total assets. There was a wide variation in size: five of the banks each had over £100m in assets (together accounting for 25% of the total), 14 had between £50m and £100m (35%), 39 between £10m and £50m (38%) and 17 under £10m (2%). The largest trustee savings banks were based in London , Glasgow , Edinburgh and Belfast . Those based in the north of England accounted for 50% of total funds, while those in

204-486: A mandate to turn the savings banks from a quasi-government body into successful independent providers, but his salary of £17,000 per annum was well below those paid at similar posts at clearing banks. The amalgamation of individual TSBs into purposely created regional banks and the establishment of a central board in 1975 provided the resources to support the introduction of personal lending in 1977. However, attempts to diversify across retail bank markets failed. Together with

255-627: A part of its business under the TSB brand. The new TSB business consists of all Lloyds TSB Scotland branches, all Cheltenham and Gloucester branches, and some Lloyds TSB branches in England and Wales. After a provisional agreement to sell the Lloyds TSB Scotland business to Co-operative Banking Group fell through in early 2013, Lloyds decided to divest it through a stock market flotation. The new TSB Bank began operations on 9 September 2013, at which time

306-536: A single central organisation that no longer had a unique corporate status but was incorporated under the Companies Act 1985 . The purported aim was to give the TSB Group plc, as it was called, a more effective operating structure and also to establish clear ground rules on ownership and accountability, neither of which was clear under former legislation. Airdrie Savings Bank refused to join the single entity, and remained

357-531: A single entity; this was purchased by Irish Life and Permanent in 2002. Together, the TSBs were as big as any of the four main London clearing banks . There was little competition between the various trustee savings banks. Each individual trustee savings bank served a separate geographic area, although other organisations competed with them, and this competition grew stronger after 1945. In 1955, inter-savings-bank clearing

408-572: Is Eamonn Crowley, who succeeded Jeremy Masding in that capacity in June 2020. In March 2011 during the Irish banking crisis the bank was said to be in need of an external €4.0 billion bailout . In February 2011 SEB (Skandinaviska Enskilda Banken AB) acquired Irish Life International Ltd (ILI), so it now operates under the corporate name Life International Assurance Company Limited. On 19 February 2013, Great-West Lifeco of Canada announced its acquisition of

459-533: Is why a target of the United Nations Sustainable Development Goal 10 is to improve the regulation and monitoring of global financial institutions and strengthen such regulations. Standard Settlement Instructions (SSIs) are the agreements between two financial institutions which fix the receiving agents of each counterparty in ordinary trades of some type. These agreements allow the related counterparties to make faster operations since

510-542: The Financial Supervisory Authority of Norway , Germany with Federal Financial Supervisory Authority and Russia with Central Bank of Russia . Merits of raising funds through financial institutions are as follows: Irish Life and Permanent Permanent TSB Group Holdings plc , formerly Irish Life and Permanent plc is a provider of personal financial services in Ireland. Irish Life Assurance plc and

561-626: The Government of Ireland , and rebranded as Permanent TSB. During the Irish banking crisis the group was split. The profitable Irish Life Group was purchased by the government for €1.3 billion, and subsequently sold to Great-west Lifeco in July 2013. The bank received a further €2.7 billion of capital from the Irish State, bringing it into majority state ownership. The bank has over one million customers in Ireland. The chief executive of Permanent TSB

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612-525: The National Giro Bank and the Co-operative Bank , the efforts of the TSBs to penetrate retail finance from scratch in 1971 resulted in only £200m in direct consumer loans in 1979, which accounted for less than 3% of total consumer lending that year. In 1984, the government published a white paper and a new TSB Bill, in which the quasi-federal decentralised structure was abandoned in favour of

663-532: The Savings Bank Act 1891 . By the inter-war years it had become clear that trustee savings banks could compete in the retail bank market. By 1919 the sum of cash and assets held on deposit for all the TSBs reached £100 million, which rose to £162 million in 1929 and £292 million in 1939. From the 1970s the Irish trustee savings banks followed a similar path of amalgamation to their UK counterparts, becoming, in 1992,

714-770: The TSB Trust Company was established in 1967 and a year later the first unit trust issue was offered. Regulatory innovations which allowed the TSBs to diversify their business threatened to erode the deposit base of the clearing banks. But this potential diversification was limited by the restrictive central control of the Exchequer, the National Debt Commissioners and the Trustee Savings Bank Inspection Committee. This type of central control had been designed both to guarantee depositors that

765-662: The Trustee Savings Banks Association to ask the Exchequer and the National Debt Commissioners to allow withdrawals by cheque (as originally proposed in 1926 by W. A. Barclay of the Perth Savings Bank). In 1965 a review of retail credit markets led to the trustee savings banks being allowed to issue current accounts (with cheque withdrawals but no overdraft facilities), undertake the payment of utility bills, and safeguard securities and valuables. Accordingly,

816-843: The United States , where the key governing bodies are the Federal Financial Institutions Examination Council (FFIEC), Office of the Comptroller of the Currency – National Banks, Federal Deposit Insurance Corporation (FDIC) State "non-member" banks, National Credit Union Administration (NCUA) – Credit Unions, Federal Reserve (Fed) – "member" banks, Office of Thrift Supervision – National Savings & Loan Association, State governments each often regulate and charter financial institutions. Countries that have one consolidated financial regulator include: Norway with

867-532: The Irish Life Group for €1.3 billion. This was disputed by the shareholders. The Supreme Court rejecting the shareholders' application to delay the sale, pending the hearing of their challenge of the sale. This was heard on 21 January 2014, and concluded on 13 February 2014. Judgement was reserved and on 15 August 2014 the case was referred to Europe. In October 2016, the US bank Cerberus Capital Management bought

918-675: The Irish Permanent Building Society merged to form the Irish Life and Permanent Group in 1999 and the merged entity acquired the Trustee Savings Bank in 2001. The group has no connection to the UK's TSB Bank . The bank is historically derived from three different companies: Irish Life Assurance plc (founded 1939) and the Irish Permanent Building Society (founded 1884) merged to form the Irish Life and Permanent Group in 1999 and

969-405: The Irish Permanent Building Society, was founded as The Irish Temperance Permanent Benefit Building Society which was founded in 1884. In 1940 under new managing director Edmund Farrell its name was changed to Irish Permanent Building Society. Farrell, and later his son, Edmund Farrell Jnr managed the building society until about 1990. In 1992 Irish Permanent Finance, specialising in auto finance,

1020-550: The Page Committee recommended that the TSBs be freed from government control, allowed to develop their service range, and thus become a third force in banking. These recommendations were high on the agenda of the newly elected government of Harold Wilson . But the pace of change was to be slow. Officials at the Bank of England , with the support of Sir Athelstan Caröe , then chairman of the Trustee Savings Banks Association , called for

1071-623: The UK loan book. In July 2022, Permanent TSB received approval to acquire a €7.6 billion Ulster Bank loan book by the Competition & Consumer Protection Commission , along with 25 branch properties. Former competitor, Ulster Bank had announced its withdrawal of services from the Republic of Ireland in February 2021. In June 2023, the Irish Government and NatWest Group each sold 5% stakes in

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1122-408: The UK market and competed against its former parent, initially under its own name. In 1999, Irish Life Assurance plc and the Irish Permanent Building Society merged to form the Irish Life and Permanent Group. In March 2012, Irish Life Assurance was sold to the Irish State for €1.3 billion as part of a bank recapitalisation programme following the Irish financial crisis . Permanent TSB, previously

1173-491: The UK was quite detailed, with several periods of "ill-health" and lack of trust in their capacity resulting in government intervention in most aspects of the operation and day-to-day management of savings banks, particularly the nature of their investment portfolios. An essential feature of a savings bank in the UK was that depositors should have a guarantee of the nominal value of their savings, so that these could be withdrawn at their full value with interest no matter how long

1224-604: The United Kingdom were amalgamated into a single institution named TSB Group plc , which was floated on the London Stock Exchange . In 1995, the TSB merged with Lloyds Bank to form Lloyds TSB , at that point the largest bank in the UK by market share and the second-largest (to HSBC , which had taken over the Midland Bank in 1992) by market capitalisation. In 2009, following its acquisition of HBOS , Lloyds TSB Group

1275-587: The amalgamation of the Cork and Limerick banks in 1986. In 1988, Waterford was incorporated into the Dublin bank and finally, in 1992, Cork and Limerick Savings Bank amalgamated with Trustee Savings Bank Dublin , to form TSB Bank . It was purchased by Irish Life and Permanent from the Government of Ireland in 2001. In 2001, Irish Life and Permanent Group acquired the Irish Trustee Savings Bank from

1326-400: The areas where the savings banks had little presence. While savings banks and government were considering the movement's future organisational structure and functions as well as those of individual TSBs, the TSBs remained restricted in what services they could offer: they could not give loans to their customers, and there were still limits on how funds could be invested. At this critical stage,

1377-460: The clearing banks, but it also required that, in the space of one year, the number of independent TSBs was reduced from 73 to 19, under the central co-ordinating authority of the TSB Central Board . The 19 banks were: This organisational framework for savings banks was in place between 1976 and 1984, a period during which TSB management undertook a series of fundamental changes while pursuing

1428-488: The creation of independent and profitable financial services group. Tom Bryans, general manager of the Northern Ireland Trustee Savings Bank , was the first chief executive of the newly amalgamated trustee savings banks. He was in his mid-50s, and had spent all his working life at the TSB movement, becoming a manager in 1956 and then becoming an expert in computerised banking. Bryans took the helm with

1479-522: The deposit. Funds would be under control of voluntary managers or trustees , hence the roots of the name. This guarantee could not be achieved unless funds were held in securities with a similar guarantee. As a result of the 1817 Act all money received by trustee savings banks, other than that needed to deal with everyday transactions, was held by the Bank of England to the credit of the National Debt Commissioners . The Act specified duties of

1530-756: The establishment of a strong central authority to assume many of the control powers vested in the government, bearing in mind the need to build up adequate capital reserves virtually from scratch. For the government, there was an advantage in widening the TSBs' investment powers only slowly, not least the threat of competition to its own newly created bank, National Girobank . TSBs actively computerised their administration. Two companies were set up in 1972 in preparation for future change: TSB Computer Services Ltd., co-ordinated all computer systems and related developments, and Central Trustee Savings Bank Ltd. dealt with volume transactions. The Trustee Savings Banks Act 1976 allowed TSBs to offer services equivalent to those of

1581-465: The financial and managerial goals of the organisation. Directors were appointed as trustees (hence the name) on a voluntary basis. The first trustee savings bank was established by Rev. Henry Duncan of Ruthwell in Dumfriesshire for his poorest parishioners in 1810, with its sole purpose being to serve the local people in the community. Between 1970 and 1985, the various trustee savings banks in

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1632-491: The first UK bank to do so. Some other savings banks still worked with leather-bound ledgers, and others used passbooks; either way handwritten record cards piled up in thousands and even the most basic management information and accounting (such as the annual balance sheet) was a huge task to compile, requiring a lot of overtime. The savings banks' administration was thus antiquated and time-consuming. They needed modernization and streamlining. In 1970 there were 75 savings banks in

1683-475: The first half of the 19th century, bank runs or bank collapses were common, so savings banks had no safe outlet for their own deposits. To create trust among potential depositors, the Savings Bank (England) Act 1817 required funds to be invested in government bonds or deposited at the Bank of England . This requirement was extended to Scottish savings banks in 1835. From then on, regulation of savings banks in

1734-605: The largest bank in the UK by market share and the second-largest to Midland Bank (now HSBC ) by market capitalisation. Following its acquisition of HBOS in January 2009, Lloyds TSB Group was renamed Lloyds Banking Group . In 2009, following the UK bank rescue package , HM Government took a 43.4% stake in Lloyds Banking Group, which later announced that, in order to comply with European Union state aid requirements, it would spin off

1785-444: The merged entity acquired the Trustee Savings Bank (founded 1816) in 2001. Irish Life was a life assurance company created in 1939 with state assistance and concentrated on life assurance and investment products. were amalgamated. Later some British companies shed their Irish operations, and merged them into this new company. They were: Shares in the business were sold to the public in July 1991. In 1965 Irish Life entered

1836-449: The money supply via fractional-reserve banking . Regulatory structures differ in each country, but typically involve prudential regulation as well as consumer protection and market stability. Some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers. Countries that have separate agencies include

1887-648: The need to respond to changing customer needs. However some individual TSBs had grown faster than others. The assets of the Scottish TSBs, traditionally the strongest members of the TSB movement, had been growing more slowly than those in Lancashire , Yorkshire , the Midlands , Wales and the West Country , which had built up enviable reserves and were anxious to protect their territories. London and southern England remained

1938-495: The only independent such bank in the UK until it announced its closure in 2017. In 1984, TSB adopted an advertising slogan by which it is still generally remembered today: "The Bank That Likes To Say Yes". In 1986, the Central Trustee Savings Bank Limited was renamed TSB England and Wales plc and Trustee Savings Bank plc was renamed TSB Scotland plc. In 1986, the shares of TSB Group plc were floated on

1989-485: The remainder of Lloyds TSB was renamed to Lloyds Bank. Financial institution Financial institutions can be distinguished broadly into two categories according to ownership structure: Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served. This

2040-458: The remainder of the business reverting to the Lloyds Bank name. From the outset, savings banks were retail finance institutions set up under democratic and philanthropic principles. They sought to create thrifty habits amongst small and medium-sized savers such as craftsmen, domestic servants or the growing proletariat, who were outside the well-to-do market that the commercial banks served. In

2091-508: The savings banks would remain a secure alternative for their deposits and, by standardising general interest rates and regulations, to make it possible for local trustees to work autonomously. By the early 1960s transactions at retail counters were increasing at around 5% per annum. In 1964 the London Trustee Savings Bank was the first to computerise standing orders, and all account records were put on computer by 1967 – this being

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2142-527: The south of England and Wales accounted for 27%, those in Scotland for 19% and those in Northern Ireland for less than 5%. Geographical location of the 1,655 trustee savings bank branches was also unevenly distributed, with branch density higher in parts of Scotland and the north of England. In 1978 there was one savings bank branch per 18,000 persons in Scotland, but only one per 75,000 persons in London. There

2193-750: The stock market and the proceeds given to the bank, adding to the ownership equity – a process described by one commentator as "selling people a gold box in such a way that when they opened it they found the purchase price inside". The original holding company, Trustee Savings Banks (Holdings) Limited, continued to be registered at Companies House under that name until 2013. The newly formed TSB Group's retail banking operations were consolidated into TSB England and Wales, TSB Scotland, TSB Northern Ireland and TSB Channel Islands, each trading as TSB Bank. In 1989, TSB England and Wales officially became TSB Bank, with TSB Bank Scotland and TSB Bank Northern Ireland becoming its subsidiary undertakings. The Northern Irish business

2244-414: The time used to settle the receiving agents is conserved. Limiting each subject to an SSI also lowers the likelihood of a fraud . SSIs are used by financial institutions to facilitate fast and accurate cross-border payments. Financial institutions in most countries operate in a heavily regulated environment because they are critical parts of countries' economies, due to economies' dependence on them to grow

2295-490: The treasurers, managers and trustees of the savings banks, none of whom was to derive any benefit from their office. This feature was to dominate the management of the TSBs until the 1970s. Savings banks paying interest on deposits (at a rate ranging from 3% to 5%) proliferated. The number of successful institutions in the UK grew until there were 645 in 1861. Their business remained in collecting low-volume deposits, as early attempts at market diversification had been curtailed by

2346-611: Was a predominantly personal banking and mortgage company. In 1999, Irish Life Assurance plc and the Irish Permanent Building Society merged to form the Irish Life and Permanent Group. The origins of the TSB Bank date back to 1816 when the first Irish Savings Bank was established in Waterford . Shortly afterwards, savings banks were established in Cork , Dublin, Monaghan and Limerick. The Dublin and Monaghan banks merged in 1977, followed by

2397-539: Was a similar pattern for individual accounts, with two out of five persons in Scotland having an account at a trustee savings bank, one out of five in the north of England, but only one out of twenty in London and the Home Counties. In 1973 at the time of the report by the Page Committee , there were still 73 TSBs and 1,549 branch offices. Eight years had passed since the introduction of cheque accounts. The TSBs sensed

2448-489: Was established. In 1992 branch operations were opened in London and Belfast . In 1992 a Banking subsidiary established in the Isle of Man . In 1994 the Irish private banking operation of Guinness & Mahon was acquired. In 1996 Capital Home Loans, a UK mortgage lender, was acquired. It was a mutual organisation , jointly owned by those saving and borrowing. It demutualised to form a plc on 21 September 1994. Irish Permanent

2499-530: Was extended to the whole country. Such a system had been in operation in Surrey in the south of England for a short time, and it had been proven successful in helping to settle transactions between different savings banks and in improving the service to clients (particularly when on holiday within the UK). Also in 1955, increased competition for deposits (and most notably the growing popularity of hire purchase ) led to calls for

2550-506: Was renamed Lloyds Banking Group , although the TSB initials initially survived in the names of its principal retail subsidiaries, Lloyds TSB Bank and Lloyds TSB Scotland. In July 2012 however, it was announced that the TSB brand would be resurrected by Lloyds Banking Group for the 632 branches it would divest as a separate business. The new TSB Bank began operations in September 2013 and was divested via an initial public offering in 2014, with

2601-509: Was sold to Allied Irish Banks in 1991 (trading as First Trust Bank until 2019) and the Channel Islands business was integrated into TSB Bank in 1992. TSB Group merged with Lloyds Bank in 1995 to form Lloyds TSB . The merger was structured as a reverse takeover by TSB; Lloyds Bank plc was delisted from the London Stock Exchange and TSB Group plc was renamed Lloyds TSB Group plc on 28 December, with former Lloyds Bank shareholders owning

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