HISTORY OF STANDARD CHARTERED

The early years

Standard Chartered in Gurgaon, India

The name Standard Chartered comes from the two original banks from which it was founded and
which merged in 1969 — The Chartered Bank of India, Australia and China, and The Standard
Bank of British South Africa.[2]

The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal
Charter by Queen Victoria in 1853,[2] while The Standard Bank was founded in the Cape Province
of South Africa in 1862 by another Scotsman John Paterson.[2] Both companies were keen to
capitalize on the huge expansion of trade and to earn the handsome profits to be made from
financing the movement of goods from Europe to the East and to Africa.

In those early years, both banks prospered. Chartered opened its first branches in Bombay,
Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. [2] With the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871,
Chartered was well placed to expand and develop its business.[2]

In South Africa, Standard, having established a considerable number of branches was prominent
in financing the development of the diamond fields of Kimberley from 1867 and later extended its
network further north to the new town of Johannesburg when gold was discovered there in
1885.[2] Half the output of the second largest gold field in the world passed through The Standard
Bank on its way to London.

A Standard Chartered Bank in Singapore.

Both banks – at that time still quite separate companies – survived the First World War and the
Depression, but were directly affected by the wider conflict of the Second World War in terms of
loss of business and closure of branches. There were also longer term effects for both banks as
countries in Asia and Africa gained their independence in the ‘50s and ‘60s.
Each had acquired other small banks along the way and spread their networks further. In 1969,
the banks decided to merge,[2] and to counterbalance their existing network by expanding in
Europe and the United States, while continuing their expansion in their traditional markets in Asia
and Africa.

In 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group.[3]. The bid
was defeated however it spurred Standard Chartered into a period of change, including a series
of divestments notably in the United States and South Africa.

Chartered bank
The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal
Charter by Queen Victoria in august 1853(james Wilson from June 3 1805-1860 was a Scottish
hat maker, politician and economist, as well founder of Economist and the modern standard
chartered bank).

Political condition

• During the decade of the 1850’s, Britain had been involved in the Crimean War and had
also fought a number of bitter battles to suppress insurgents in South Africa. However,
these crises had more or less passed by the late 1850’s,
• British dominancy was over India and the neighboring countries.
• Abraham Lincoln was elected as president of USA during this time period.

Economical condition

• Industrial Revolution was taking place in UK (its roots are from Manchester 1844).
• London exhibition for different products (mainly industrial) was also held in 1951 in which
6 million visitors participated.

Corporate Mission
Since the name of the bank was The Chartered Bank of India, Australia and China, the UK
wanted to enhance its business safely. Soon after its establishment it opened its branch in
Sydney. The above statement is supported by news published in The Sydney Morning Herald-
Nov 5 1853 which tells about the Bills of exchange on England purchased and sold for
general business.

Establishing international goals and Objectives;

“To expand the trade and commerce of UK in foreign courtiers.”

Degree of involvement

The bank was involved directly. It was indented to open branches to become the first mover.

Resource Allocation

500,000 pounds for Sydney branch established in 1854.

Level of Risk
Conditions were favorable. The risk was low.