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Wikipedia / State Bank of New South Wales

The State Bank of New South Wales, from 1933 until 1981 known as the Rural Bank of New South Wales, was a bank owned by the Government of New South Wales. In 1994, it was taken over by Colonial Mutual and became the Colonial State Bank. It was sold to the Commonwealth Bank in 2000.

History of operations

Founding and growth

In early 1931, the Government Savings Bank was in financial trouble in the midst of the Great Depression and, on 22 April 1931, the Bank suspended payments after a drain on its cash resources. On 15 December 1931, the majority of the Government Savings Bank was amalgamated with the Commonwealth Savings Bank.

However, the Rural Bank and Advance Homes Departments of the Government Savings Bank were not taken over by the Commonwealth Savings Bank, and continued to operate. In late 1932, the NSW Government, led by Assistant Treasurer Eric Spooner, introduced legislation to reconstitute what remained of the Government Savings Bank into a new "Rural Bank of New South Wales", governed by a board of three commissioners, with a specific mandate to support primary industries and not to operate as a traditional general lending bank.

On 23 December 1932, the Rural Bank of New South Wales Act, 1932 was passed by the NSW Parliament, and on 1 July 1933 the new institution and board of commissioners commenced operations to replace the old Government Savings Bank. The former chairman of the GSB, William O'Malley Wood, was appointed president and commissioner, with Clarence McKerihan and Henry Rogers appointed as commissioners.

On 19 December 1947, the NSW Parliament passed the Rural Bank of New South Wales (General Banking) Act, 1947, which merged the Rural Bank Department, the Advances for Homes Department, and the Personal Loans Department, into a General Bank Department, and authorised the bank to operate as a regular trading bank. About the change, the Premier of NSW, Jim McGirr, commented:

State Bank

On 2 November 1981, the State Bank Act came into effect, which reconstituted the Rural Bank as the "State Bank of New South Wales", governed by a board of seven directors, and changed the mandate to that of a standard commercial bank. The bank's slogan for many years was "We do more for you personally". On the change of the Rural Bank to the State Bank, a former bank employee, Bruce R. Turner, later recalled: The bank was 'corporatised' in 1990, under the State Owned Corporations Act 1989 (NSW) and the State Bank (Corporatisation) Act 1989 (NSW). On 14 May 1990, the existing State Bank was dissolved, and all of its assets and business undertaking were vested in an incorporated State Bank, limited by shares.

Privatisation and merger

On 23 November 1994, the NSW Government sold the bank to Colonial Mutual, a financial services company, through the State Bank (Privatisation) Act 1994. Although initially retaining the State Bank name, the bank changed its name to Colonial State Bank in 1996. In 2000, it too was taken over, this time by the Commonwealth Bank.

Executives

Rural Bank, 1933–1981

The board of the Rural Bank consisted of three (later five) commissioners, appointed by the Governor on the advice of the Premier, for a term of seven years, with one of the commissioners appointed as president/general manager. A deputy president could also be appointed to fill in during a long period of absence of the president.

Presidents

Commissioners

State Bank, 1981–1994

From 2 November 1981, the board of the State Bank consisted of seven directors appointed by the Governor on the advice of the Premier, with one of the directors appointed as managing director.

Managing Directors/CEO

Directors

Former bank buildings

There are many former buildings of the Rural Bank and its successors that are heritage listed:

References