Martins Bank (Finance) Limited

MARTINS BANK (FINANCE) LIMITED

Martins Bank (Finance) Company commences business on 1 April 1967. At this time, Martins Bank Limited is pushing in all directions to be all things to all people – the 1960s sees a surge in the opening of new branches, sub-branches, district offices and departments, the opening of more trustee and investment offices, and with that the creation of Martins Bank Trust Company. The Bank was also faced with funding the major outlay required to open the London Computer Centre at Bucklersbury House, established automated branch accounting for more than forty Branches of the Bank in and around London. The Bank’s Organisation, Research and Development Department was also exploring methods of data transmission, and the possible establishment of another much larger computer centre at Wythenshawe, Manchester. Martins Unicorn Limited was created in 1967, through Martins’ acquisition of Unicorn Securities, followed not long afterwards by the acquisition of Griffin Assurance Company Limited, making possible the “in-house” provision of a comprehensive and credible range of financial services alongside traditional branch banking.

By 1968, the prospect of Martins merging with Lloyds and Barclays dominated proceedings, until the Monopolies Commission recommended against a three-way merger. It was suggested that there would be no objection to a merger with ONE other bank, and no time was wasted on the planned marriage of Barclays and Martins. For the purposes of sharing information during various merger talks, Martins produced a detailed information sheet to explain just how and why Martins Bank (Finance) Limited was brought into existence…

MARTINS BANK (FINANCE) LIMITED

1 . Martins Bank (Finance) Limited is a wholly owned subsidiary of Martins Bank Limited, with paid up capital of £1 million. The registered office is at 68 Lombard Street and the

company commenced business on 1st April 1967. The Board meets monthly in London, the members being –

Sir Cuthbert Clegg (Chairman) (Also, chairman of parent company)

E. P. Jaggard (and General Manager)

J. H. Keswick (a Deputy Chairman of the parent company and Chairman of the London Board of the parent company)

D. O. Maxwell (Director and Chief General Manager of the parent company)

H . Taylor (a Joint General Manager of the parent company)

W. E. Turnbull (Local Director and District General Manager, London, of the parent company)

L. J. Walton (London Local Director and Deputy Chief General Manager of the parent company).

2 . Functions and Responsibilities.

The finance company operates within the framework of a policy approved by the General Board of the bank to whom any new activities, involving matters of principle, would be referred. Its activities are generally directed towards the provision of specialised financial services for customers of Martins Bank Limited and for others, especially in the medium-term field. It handles -

(a) Sterling deposits at Market Rates : minimum £50,000 for a minimum period of one month.

(b) Sterling loans (subject to any credit restrictions):

(i) on-lending to Martins Bank Limited

(ii) Medium term fixed loans for periods up to 5 years.

(iii) exceptionally, the placing of funds with local authorities, hire purchase houses and in the inter-bank market.

(iv) participation in syndicated sterling loans or credit lines.

(c) Foreign currency deposits are accepted and employed in the granting of loans to customers of the parent company and others. The company participates in the Euro-dollar

markets both in the United Kingdom and abroad within a global limit approved by the General Board of the parent company.

3. Organisation.

The Director and General Manager of the finance company, who is stationed in London, is responsible on a day-to-day basis to the Deputy Chief General Manager of the bank, who is also a member of the finance company board. He has a discretionary power to grant advances jointly with any one other executive director up to £100,000. The directors of the company who are members of the London General Management of the parent company have a discretionary power up to £200,000, either jointly or with the director and general manager of the finance company. All applications for facilities over £100,000 are reported on a day-to-day basis to the Head Office of the parent company and are submitted to the Standing Committee by a Joint General Manager.

In the day-to-day running of the company, the Director and General Manager is assisted by one male member of staff and one lady secretary. Sterling money market operations are handled partly by the finance company's own staff and partly by the appropriate department at 68 Lombard Street Office, while Euro-currency operations are carried out by the Chief Overseas Branch. All bookkeeping services are provided by the appropriate departments of the parent company. The Director and General Manager maintains direct liaison with the District General Managers in respect of sterling deposits emanating from the bank's customers.

Additionally, the Director and General Manager is the group's representative on the Financial Committee of Compagnie Internationale de Credit a Moyen Terme S.A. in which the parent company has an interest and to whom the finance company has granted a stand-by line of credit.