ABSTRACT
What greatly assisted the spread of branch banking throughout Scotland was the right to issue notes of less than £1, which enabled the banks to draw on the financial resources of a large number of small communities by putting their notes into circulation over a wide area and helping to finance the establishment of their branches at the same time.3 The growth of networks of branches was also effected by the absorption of local banks and private banking houses by the larger banks, as well as by amalgamations between small units to form bigger banking units. In this way, the number of banks was gradually reduced – by 1865 it had fallen to 12 – while each institution was represented by branches spread across the country. In this matter, Scotland was at that time well ahead of England.
