Anglo-South American Bank
| Company type | Private |
|---|---|
| Industry | Banking, Finance |
| Predecessor | Bank of Tarapacá and London, Anglo-Argentine Bank |
| Founded | 1900 |
| Defunct | 1936 |
| Fate | Liquidated; operations acquired by Bank of London and South America |
| Headquarters | London (headquarters), Buenos Aires (Argentine headquarters) , United Kingdom, Argentina |
Area served | Argentina, Bolivia, Central America, Colombia, Cuba, Ecuador, Germany, Mexico, Peru, South America, Uruguay, Venezuela |
Key people | John Thomas North (founder of predecessor) |
| Products | Banking services |
The Anglo-South American Bank emerged as a British-Argentine financial institution in 1900, resulting from the Bank of Tarapacá and London’s acquisition of the Anglo-Argentine Bank. Originally established under the name Bank of Tarapacá and Argentina, it adopted the Anglo-South American Bank title in 1907.
History
The Bank of Tarapacá and London was created in 1888 under the leadership of British financier John Thomas North to support Chile’s burgeoning nitrate sector, following Chile’s annexation of Tarapacá after the War of the Pacific. With its headquarters based in London, the bank expanded its operations internationally, diversifying into coffee and cocoa markets.
Around 1900, aiming to broaden its reach beyond Chile, the bank set its sights on Buenos Aires but encountered stiff competition from four well-established British banks. To establish a foothold in this competitive environment, it purchased the smallest of these rivals, the Anglo-Argentine Bank (founded in 1889), which maintained branches in Buenos Aires and Montevideo. Following this consolidation, the bank fostered strong connections with Belgian financial entities and secured accounts with Belgian companies. Additionally, it operated a branch in Germany and maintained an account at the Bank of England.
In 1910, it took a minority stake in the Commercial Bank of Spanish America and gained controlling interest by 1917, although it continued to manage it as a separate entity. This institution had evolved from Banco de Nicaragua (established 1888), which financed coffee trade, later becoming known as the London Bank of Central America. It merged with Banco Particular de El Salvador (established 1885) to form Banco Salvadoreño (currently HSBC El Salvador). By 1911, it had adopted the name Commercial Bank of Spanish America.
The Anglo-South American’s Argentine headquarters were situated at 46 Reconquista Street in Buenos Aires’ financial district. Designed by British architects Paul Bell Chambers and Louis Newbery Thomas in an Academic architectural style, this building—completed in 1920—is recognized as the Palacio de la Reconquista.
World War I adversely affected the Commercial Bank’s stability, leading its shareholders to divest a majority interest to Anglo-South American. This acquisition broadened Anglo-South American’s footprint throughout Argentina (including Buenos Aires, Mendoza, Bahía Blanca), Bolivia, Central America, Colombia, Cuba, Ecuador, Mexico, Peru, Uruguay, and Venezuela. In 1926, it fully integrated Commercial Bank branches located in Central America and northern South America.
In 1920, the bank expanded further by acquiring the British Bank of South America, which originated as the Brazilian and Portuguese Bank (1862) before being renamed English Bank of Rio de Janeiro (1866). It also secured a controlling stake (60%) in Chile’s private Banco de A. Edwards y Cía., established in 1867 by Agustín Edwards Ossandón. Banco Edwards issued currency denominated both in Chilean pesos and pounds sterling.
The late 1920s introduced significant difficulties: synthetic nitrates diminished demand for natural nitrates, while the Great Depression compounded financial strains. These challenges culminated in Anglo-South American’s liquidation in 1936. Many of its operations were acquired by its competitor, the Bank of London and South America (BOLSA). Banco A. Edwards remained active under BOLSA’s ownership until Midland Bank acquired it in 1987; it was later incorporated into HSBC Bank Argentina (1997) and eventually merged into Banco de Chile by 2001.
Sources
- Graham, Richard. 1972. Britain and the Beginning of Modernization in Brazil, 1850-1914. (Cambridge University Press).
- Jones, Geoffrey. 1995. British Multinational Banking 1830-1990. (London: Oxford University Press).
- Joslin, David. 1963. A Century of Banking in Latin America. (London: Oxford University Press).
- Rippy, J. Fred. 1948. "British Investments in Latin America, 1939," Journal of Political Economy Vol. 56, No. 1, pp. 63–68.