Today’s main banks in Ireland are almost entirely based upon banks founded before the great famine of 1845. This was a period of significant development alongside severe economic crises. It was a period of great wealth alongside severe poverty. It was also a period of gradual reform of the Penal Laws and Catholic emancipation.

The legislation which established the Bank of Ireland in 1783 gave it a monopoly over many forms of banking. By 1816 the Scottish banking system had proven that the economy would be better served if no such monopoly existed. Arthur Guinness was Governor of the bank at the time and agreed terms with the government in relation to the removal of the monopoly and this was confirmed by Acts in 1821 & 1824. In return for removal of the monopoly the Bank got favourable arrangements for increased capital stock.

Many of the banks established at this time formed the basis of Irish banking through to the 1960s when they became incorporated into the larger groups that exist today.

Northern Bank

A private bank operated by Montgomery, Sloane, Hamilton and Orr, which had traded as The Northern Bank, floated its shares among 264 subscribers and opened for business on 1st of January 1825. In 1986 Northern Bank, then owned by the Midland Bank, separated into two separate entities with the Republic of Ireland business trading initially under the name Northern Bank (Ireland) Limited. In 1987 both parts of the bank were purchased by National Australia Bank and Northern Bank (Ireland) was renamed as the National Irish Bank. In December 2004 both banks were acquired by Danske Bank. The banks are now licensed by the Danish banking regulator. In 2005 the banks moved their IT operations to the single platform of Danske Bank.

Hibernian Bank

The Hibernian Bank was established by the Act of 1824 and opened for business in the following year. It was promoted by a group of catholic businessmen who felt unfairly discriminated against. In 1826, following a dispute with government and the Bank of Ireland about note issue, the Hibernian Bank issued “tokens” which had the look of notes but were not redeemable. The government (allegedly with the help of the Provincial Bank) drafted a bill to dissolve the bank but did not proceed with it. In 1958 the Hibernian Bank was acquired by the Bank of Ireland. It continued to trade under its own name until 1966 and was then re-branded and assimilated into Bank of Ireland.

Joplin’s Bank (established as The Provincial Bank of Ireland)

In 1824, following a failed attempt to establish a bank in London, Thomas Joplin and others sought to establish a major bank in Ireland despite the fact that Irish legislation required that Irish bank shareholders should be Irish citizens. Joplin proposed a range of changes of legislation and despite fierce opposition from Bank of Ireland and others, the legislation was passed. In 1826 there was a run on the bank in Cork and it was rescued by a loan from Bank of Ireland. By 1827 there was a dispute regarding the issuance of notes by the Provincial Bank. Provincial Bank lost the case but was eventually allowed a limited note issue, provided that it held certain balances at Bank of Ireland. Gradually this brought an end to the Bank of Ireland’s monopoly on note issue. In 1966 the Provincial Bank joined with the Royal Bank and the Munster & Leinster Bank to form AIB.

Belfast Bank

1827 saw the formation of the Belfast Bank from two private banks. In 1970 the Belfast Banking Company amalgamated with the Northern Bank.

National Bank

The National Bank Limited was formed in 1835 by the Repeal Party, led by Daniel O’Connell, who became its first governor. Each branch was a separate company, being 50% owned by the parent company and 50% by local shareholders. Branches were quickly opened in Carrick-on-Suir, Limerick, Clonmel, Waterford, Wexford, Enniscorthy, Tipperary and Tralee. By 1837 this cumbersome arrangement was abandoned and a single structure was put in place. In 1965 the Irish offices of the National Bank were taken over by Bank of Ireland, who re-branded them as National Bank of Ireland but later absorbed them into a single bank under the name of Bank of Ireland. The English offices of National Bank were sold to Glyn Mills & Co, which later was amalgamated into Williams & Glyns in 1969 and were eventually absorbed into the Royal Bank of Scotland.

Royal Bank

In 1835 the private bank of Robert Shaw & Co formed The Royal Bank of Ireland. It was originally confined to one Dublin office but was later expanded. In 1966 the Provincial Bank joined with the Royal Bank and the Munster & Leinster Bank to form AIB.

Ulster Bank

In 1835 a group of businessmen made arrangements to open a Belfast office of the National Bank. However, negotiations broke down so they established a local bank called Ulster Bank. It opened for business on 1st of July 1836. In 1968 Ulster Bank was taken over by National Westminster Bank, which in turn was taken over by Royal Bank of Scotland.

Agricultural and Commercial Bank

This was established in 1834 and was supported by wealthy businessmen and nobility but crashed spectacularly two years later.

Tipperary Joint Stock Bank

The Tipperary Joint Stock Bank was formed in 1838. There were persistent rumours throughout the life of the bank and on 13th February 1856 it crashed. Four days later John Sadlier, the main director, committed suicide and in the subsequent investigation many internal frauds and forgeries came to light.

Munster Bank

Formed in 1864 in Cork, the Munster Bank quickly expanded throughout the south of Ireland. It crashed spectacularly on the 14th July 1885 following a run. The run was instigated by rumours of large borrowings by directors.

Munster & Leinster Bank

Formed in 1885, the Munster & Leinster Bank did not take over the Munster Bank as a going concern. It purchased the premises and fittings from the liquidation. Throughout its life, this bank was among the largest in Ireland, and was the dominant partner when it joined with the Provincial Bank and the Royal Bank to form AIB.