In 2009, following its acquisition of HBOS, Lloyds TSB Group was renamed Lloyds Banking Group, although the TSB initials initially survived in the names of its principal retail subsidiaries, Lloyds TSB Bank and Lloyds TSB Scotland.
In the first half of the 19th century, bank runs or bank collapses were common, so savings banks had no safe outlet for their own deposits.
From then on, regulation of savings banks in the UK was quite detailed, with several periods of “ill-health” and lack of trust in their capacity resulting in government intervention in most aspects of the operation and day-to-day management of savings banks, particularly the nature of their investment portfolios.
An essential feature of a savings bank in the UK was that depositors should have a guarantee of the nominal value of their savings, so that these could be withdrawn at their full value with interest no matter how long the deposit.
This article is about the former Trustee Savings Bank in the United Kingdom.
For the new TSB Bank divested from Lloyds Banking Group, see TSB Bank (United Kingdom). The Trustee Savings Bank (TSB) was a British financial institution.
Trustee savings banks originated to accept savings deposits from those with moderate means.Their shares were not traded on the stock market but, unlike with mutually held building societies, depositors had no voting rights; nor did they have the power to direct the financial and managerial goals of the organisation.Directors were appointed as trustees (hence the name) on a voluntary basis.The first trustee savings bank was established by Reverend Henry Duncan of Ruthwell in Dumfriesshire for his poorest parishoners in 1810 with its sole purpose being to serve the local people in the community .Between 19, the various trustee savings banks in the United Kingdom were amalgamated into a single institution named TSB Group plc, which was floated on the London Stock Exchange.In 1995, the TSB merged with Lloyds Bank to form Lloyds TSB, at that point the largest bank in the UK by market share and the second-largest (to HSBC, which had taken over the Midland Bank in 1992) by market capitalisation.