Bank of Scotland is the oldest, one of the most esteemed banks in the world; the bank of Scotland was founded in 1695. Rooted in Edinburgh, Scotland, the Bank of Scotland is a clearing and commercial bank providing all financial services to its huge clientele. The history of the bank dates back in the late 17th century. It is the oldest existing bank of United Kingdom with the most prestigious standing. It is one single commercial organization established by the Parliament of Scotland to remain in subsistence. Bank of Scotland is the first bank to print its own bucks which it still performs today.

As said earlier, the key service which the Bank of Scotland is providing is the right to issue currency notes.  The currency note features Sir Walter Scott on the frontage and on the rear- representation of the key industries in which Scotland is excelling are printed. Bank of Scotland started issuing a new series of currency notes in 2007, which show Scottish bridges. The look of all of the new bucks is almost the same as its earlier designs with minor changes and improved security measures. Besides this the bank offers a big range of financial products ranging from personal to institutional services, including products related to loans, insurance, travel and credit cards. All the offered services by the bank can easily be executed though it’s online banking network.

The Bank has several subsidiaries and brands viz. Halifax, Banco Halifax Hispania, Birmingham Midshires, Intelligent Finance, Sainsbury's Bank (50%), Bank of Scotland Corporate which includes Capital Bank, Bank of Scotland Investment Services, Bank of Scotland Private Banking, HBOS Financial Services Ltd, HBOS Insurance & Investment Group Ltd and HBOS Treasury Services plc. Out of Scotland it has subsidiaries in Ireland and Netherlands under the name of Bank of Scotland-Ireland and Bank of Scotland Netherlands. The bank imparts a wide range of financial services to its clients across the US and even to its international customers.

The Bank was established chiefly to rally round in developing Scotland's business and trade, primarily with England and the low down countries. It started business in 1696 with a working capital of £120k Scots (£10k Sterling). The 172 stakeholders (including 36 stockholders based in London) came mostly from Scotland's merchants and political cream of the crop. The thing they needed was a banking structure which would proffer long-term credit lines and protection for merchants and landowners equally.

Since 1695 till 1715 the bank enjoyed the monopoly. Bank of Scotland was instituted by the  government of Scotland to prop up Scottish business. As per Act, under which the bank was founded; it was proscribed from lending to the government without parliamentary endorsement. The Bank of Scotland was actively involved in the raising of funds for the first Jacobite Rising in 1715. This resulted in an end to the Bank's monopoly in 1716, and its first ever competitor, the Royal Bank of Scotland was established by Royal Charter in 1727 where both banks were at loggerheads. Even though the tug of war ended in 1740, competition increased from other fronts, as new Scottish banks were founded across the country. In rejoinder, the Bank of Scotland increased its banking activity by open branches throughout Scotland. The first branch of Bank of Scotland was opened in London in 1865.

With a stable performance in 19th century, the bank of Scotland remained a calm performer during the first 5 decades of the 20th century. By the end of world war and development of the capitalist societies round the globe the bank also entered into several mergers and acquisitions with various banks.In 1955, the Bank had a merger with the Union Bank of Scotland. The Bank also stretched out into consumer credit service with the purchase of North West Securities which is now known as Capital Bank. In 1971, the Bank decided for a merger with the British Linen Bank, which is owned by Barclays Bank. Going forward, the merchant banking department of the Bank of Scotland was re-commenced as British Linen Bank now well-known as HBOS Treasury Services.

The commencement of business by North Sea Oil in Scotland in 70s enabled the Bank of Scotland to put its feet into the energy sector. The Bank even utilised its expertise in energy finance to go global. The first international office by the bank was opened in Houston, followed by several offices in USA, Moscow and then later on in Singapore. In 1987, the Bank took over Countrywide Bank of New Zealand and then went for expansion into the Australian financial market by acquiring Bank of Western Australia.

In the late 1990s, the consolidation phase of the UK financial market came on a broad scale. For instance, in 1995, Lloyds Bank and TSB Bank undergone a merger and emerged as Lloyds TSB. In 1999, the Bank of Scotland made a takeover bid for the NatWest Bank. With the dawn of new millennium, the Bank of Scotland and the Halifax decided to go for a merger to setup HBOS (Halifax Bank of Scotland) in 2001. With a short span of almost seven years, HBOS has grown to become the fourth biggest bank in the UK in terms of market value, whereas it is UK's largest mortgage lender.