Arbroath Banking Co

Arbroath Banking Co (1825-1844), established in Arbroath, Scotland, was a past constituent of the Royal Bank of Scotland.

This private bank was founded in April 1825 as a co-partnership by William Kid, merchant, and James Marnie, manufacturer, both former town provosts, to provide credit to local businessmen. The co-partnership, trading as Arbroath Banking Co, was to last for 42 years. The bank had 9 directors, and an authorised capital of £100,000, divided into 200 shares of £500 each, of which £40,000 was initially paid up. It attracted 113 shareholders, primarily local merchants, manufacturers and farmers, and appointed Glyn, Mills & Co as its London agent.

Despite competition from branches of other banks in the town, the bank prospered, as Arbroath was a busy port and centre for linen weaving and bleaching and there was a huge local demand for short-term credit. The bank issued its own notes and opened a branch in Forfar in 1825. During the mid 1830s it played a prominent role in financing the Arbroath & Forfar Railway. However, by 1844, when note circulation was £13,787 and deposits £137,279, the bank became illiquid, with large amounts of capital tied up in property. In 1844 it was acquired by Commercial Bank of Scotland, which paid £8,000 for the business, plus £2,500 for its properties in Arbroath and Forfar.

Our archive holdings

A summary list of our archival records of Arbroath Banking Company can be found on the Archives Hub website.