Bank of British Columbia

Bank of British Columbia refers to two separate Canadian banking institutions that used the same name at different points in the province's financial history. The first was established by royal charter in 1862, with its head office in London. It developed a network serving British Columbia and the Pacific Northwest, opening or operating branches in Victoria, New Westminster, Vancouver, Kamloops, Nanaimo, Nelson, Rossland, Sandon, San Francisco, Portland, and Seattle. The institution also issued its own dollar banknotes between 1862 and 1871, with notes later issued between 1863 and 1894 remaining collectible and some still outstanding. In 1901, the first Bank of British Columbia merged with the Canadian Bank of Commerce. The second institution was chartered in 1966 and headquartered in Vancouver. Its creation was closely associated with W. A. C. Bennett, then premier of British Columbia. Bennett sought a stronger regional banking institution that could make lending decisions within the province rather than requiring many significant corporate-loan approvals to pass through bank head offices in Montreal or Toronto. The bank therefore carried a distinct regional-development mission, even though it ultimately operated as a broad commercial banking organization. By 1986, the second bank employed approximately 1,410 people and maintained 41 branches in British Columbia and Alberta, alongside offices in the Cayman Islands, the United States, and Hong Kong. It reported assets of approximately CAD 2.7 billion and ranked 27th among Canadian banks and financial institutions at that time. Its business depended in part on wholesale deposit funding and was exposed to the economic conditions of Western Canada. The decline of the western oil economy created severe pressure on the bank and on other financial institutions with similar regional and wholesale-funding exposures. The failures of Canadian Commercial Bank and Northland Bank intensified that pressure and contributed to a broader 1986 crisis involving trust companies, credit unions, and financial institutions. The Canadian government allowed Hongkong Bank of Canada, later associated with HSBC's Canadian operations, to rescue the Bank of British Columbia. The second institution consequently ceased to exist as an independent bank in 1986. The name remains significant in Canadian financial history because it links an early colonial-era banknote issuer with a later regional bank created to challenge Canada's Central Canadian concentration of banking power.

The name Bank of British Columbia belongs to two distinct Canadian banks. The first was established by royal charter in 1862, although its head office was in London rather than in British Columbia. Its existence reflected the commercial importance of the Pacific coast and the expanding economic links between Britain, British Columbia, and the northwestern United States. From 1862 to 1871, it issued dollar-denominated banknotes. Notes associated with the institution continued to circulate in several denominations, and notes issued from 1863 through 1894 later became objects of numismatic interest. The first bank built a geographically broad branch system. Branches operated in Victoria and New Westminster from 1862, while Portland was established in 1866. By 1885, the institution also had a presence in San Francisco, and a Seattle branch followed in 1889. Its British Columbia network later included Vancouver, Kamloops, Nanaimo, Nelson, Rossland, Sandon, Victoria, and New Westminster. This network connected local commercial activity with the Pacific trade routes and financial centers of the United States and Britain. The institution also left a built-heritage legacy. Its Victoria branch, constructed in 1885, was later designated a heritage site by the City of Victoria in 1975. Its Vancouver branch was built between 1889 and 1891 and was added to Vancouver's Community Heritage Register in 1986. In 1901, the first Bank of British Columbia merged with the Canadian Bank of Commerce, bringing that phase of the name's history to an end. A second Bank of British Columbia was chartered in 1966, with headquarters in Vancouver. Its establishment was associated with W. A. C. Bennett, the businessman and premier of British Columbia. Bennett viewed the structure of Canadian banking as overly concentrated in Central Canada. In his view, businesses in British Columbia often had to obtain authorization from head offices in Montreal or Toronto for loans beyond smaller limits. A new regional bank was intended to retain more financial decision-making capacity within the province and to support Western Canadian enterprise. The second bank expanded beyond a purely provincial role. By 1986, it had 41 branches in British Columbia and Alberta, employed approximately 1,410 people, and maintained offices in the Cayman Islands, the United States, and Hong Kong. Its reported assets were approximately CAD 2.7 billion, placing it 27th among Canadian banks and financial institutions. Its scale reflected the development of a diversified commercial banking operation rather than a narrowly local savings institution. The bank's final years coincided with a major Western Canadian financial downturn. The fall in the western oil economy weakened borrowers and financial institutions, while the collapses of Canadian Commercial Bank and Northland Bank affected confidence in institutions that relied on wholesale deposit funding. The resulting stress extended beyond banks to trust companies and credit unions, prompting government involvement in a series of 1986 interventions and combinations. In that context, the Canadian government permitted Hongkong Bank of Canada to rescue the Bank of British Columbia. The transaction ended the second bank's independent life in 1986. The Bank of British Columbia is therefore remembered both for its nineteenth-century role as a chartered Pacific-region bank and for its twentieth-century role as a regional banking project intended to reduce Western Canada's dependence on financial decisions made in Montreal and Toronto.

1. 1986Second bank rescued and ends independent operations

   During the Western Canadian financial crisis, the Canadian government permitted Hongkong Bank of Canada to rescue the Bank of British Columbia.

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2. 1986Vancouver branch added to Community Heritage Register

   The former Vancouver branch building, constructed between 1889 and 1891, was added to Vancouver's Community Heritage Register.

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3. 1975Victoria branch receives heritage designation

   The former Victoria branch building was designated a heritage site by the City of Victoria.

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4. 1966Second Bank of British Columbia chartered

   A new Vancouver-headquartered bank was chartered, associated with W. A. C. Bennett's effort to establish a stronger Western Canadian financial institution.

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5. 1901First institution merges with Canadian Bank of Commerce

   The original Bank of British Columbia was merged into the Canadian Bank of Commerce.

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6. 1889Seattle branch established

   The first bank added a Seattle branch, strengthening its cross-border Pacific Northwest network.

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7. 1885Victoria branch building completed

   The Victoria branch building was constructed and later became a designated heritage site.

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8. 1866Portland branch established

   The first bank expanded its branch presence into Portland, adding to its operations in British Columbia and the Pacific Northwest.

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9. 1862First Bank of British Columbia established by royal charter

   The first institution bearing the name was chartered, with its head office in London, and began building a Pacific-facing banking network.

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The second Bank of British Columbia was positioned as a regionally rooted Canadian bank capable of making lending decisions closer to businesses in British Columbia and Western Canada, rather than relying predominantly on financial centers in Montreal or Toronto. The earlier institution served as a Pacific-facing chartered bank with branches across British Columbia and the northwestern United States.

• Commercial bankingBanking services1966

  The second Bank of British Columbia provided general commercial banking services through its branch network in British Columbia and Alberta. Its regional rationale was to give Western Canadian businesses access to a bank whose lending and credit decisions were more closely connected to the local economy.

• Corporate and business lendingCommercial finance1966

  Business lending was central to the second institution's regional mission. The bank was created partly because major businesses in British Columbia often depended on approval from financial centers in Montreal or Toronto for loans above relatively small limits.

• Bank of British Columbia banknotesChartered-bank currency1862

  The first Bank of British Columbia issued dollar banknotes from 1862 to 1871, with notes documented from 1863 through 1894 in denominations including $1, $5, $10, $20, and $50. Some notes remained outstanding and later became collectible historical currency.

• 1986Accept rescue by Hongkong Bank of CanadaM&A

  The decline of the western oil economy and the failures of Canadian Commercial Bank and Northland Bank placed substantial pressure on institutions dependent on wholesale deposit funding.

  What changed. The Canadian government permitted Hongkong Bank of Canada to rescue the Bank of British Columbia.

  Aftermath. The Bank of British Columbia ceased operating as an independent institution.

  Assets. CAD 2.7 billion (1986)

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• 1966Create a regionally controlled Western Canadian bankStrategy

  W. A. C. Bennett argued that Canada's banking system concentrated important lending authority in Montreal and Toronto, limiting the ability of British Columbia businesses to obtain larger loans through local decision-makers.

  What changed. A new Bank of British Columbia was chartered in Vancouver to provide a stronger regional banking institution and retain more commercial-finance capacity in Western Canada.

  Aftermath. The bank grew into a multi-jurisdictional commercial institution, with branches in British Columbia and Alberta and offices abroad, before financial stress brought about its rescue in 1986.

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• 1986Bank of British Columbia faces pressure during Western Canadian financial crisis

  The decline of the western oil economy, together with the failures of Canadian Commercial Bank and Northland Bank, created serious difficulties for the Bank of British Columbia and other institutions dependent on wholesale deposit funding.

  BankruptcyRegulationOther
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• 1986Hongkong Bank of Canada permitted to rescue Bank of British Columbia

  The Canadian government permitted Hongkong Bank of Canada to rescue the financially troubled institution, ending the Bank of British Columbia's independent existence.

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• 1901First Bank of British Columbia merges with Canadian Bank of Commerce

  The first institution using the Bank of British Columbia name was absorbed into the Canadian Bank of Commerce after operating for nearly four decades.

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1. Bank of British Columbia
2. Bank of British Columbia Business Continuation Act