Bank of London and Montreal

The Bank of London and Montreal Limited, commonly known as BOLAM, was a historical international bank created in 1958 as a 50-50 joint venture between the Bank of London and South America and the Bank of Montreal. The Bank of London and South America, commonly abbreviated as BOLSA, was associated with Lloyds Bank and contributed an existing network of branches in northern South America and the West Indies. The Bank of Montreal supplied capital and brought Canadian banking expertise to the venture. BOLAM was headquartered in Nassau, Bahamas, giving the joint venture an operating base in an important Caribbean financial centre. The bank was established to conduct commercial and international banking in markets where both parent institutions saw opportunities for trade finance, corporate banking, correspondent relationships, and regional financial services. Rather than functioning primarily as a domestic retail bank in one country, BOLAM was designed as a cross-border network. Its geographic footprint included parts of Latin America, the Caribbean, and the West Indies, and it expanded through new branches as well as inherited operations. In 1959 it opened a branch in Jamaica, followed by a Trinidad branch in 1960. By 1970, the institution had 28 branches across Latin America and the Caribbean. BOLAM's ownership and structure changed during the 1960s. In 1965, Mellon National Bank acquired a minority shareholding of 15 percent. The transaction reduced Lloyds' effective interest to 24 percent, while the Bank of Montreal remained a major participant. BOLAM also adjusted its Venezuelan operations during this period, closing its offices in Venezuela and acquiring a substantial holding in Banco La Guaira Internacional, which operated in Caracas and La Guaira. In 1968, the Bank of England permitted Mellon to increase its interest to 25 percent. The joint-venture model did not last indefinitely. In 1970, BOLSA purchased BOLAM, ending the original 50-50 structure. The Bank of Montreal's former regional operations were subsequently separated or transferred in several markets. In Trinidad and Tobago, the government's acquisition of the Bank of Montreal's operations helped finance the creation of National Commercial Bank, an institution that later became associated with First Citizens Bank. In Jamaica, the government bought the Bank of Montreal's operations in 1971 and renamed them Bank of Surrey, although that institution closed five months later. Other BOLAM-related operations were incorporated into successor organizations connected with Lloyds and the Bank of Montreal. BOLAM's absorption also formed part of a broader Lloyds international-banking reorganization. In 1971, Lloyds combined Lloyds Bank Europe, BOLSA, and BOLAM into Lloyds and Bolsa International Bank. Lloyds held a majority stake and Mellon Bank retained a minority interest. Lloyds later acquired Mellon and the other minority holdings, after which the institution was renamed Lloyds Bank International. BOLAM therefore ceased to operate as an independent branded bank, even though elements of its branch network and business continued under successor institutions. The former BOLAM network included a Tokyo branch opened in 1971; Lloyds Bank International closed that branch in 1975. Later changes to related Bank of Montreal operations in the Bahamas and the Caribbean further fragmented the original network.

The Bank of London and Montreal Limited was established in 1958 as an equal joint venture between the Bank of London and South America and the Bank of Montreal. The former was connected with Lloyds Bank and brought an established branch presence in northern South America and the West Indies. The Bank of Montreal contributed capital. The new institution selected Nassau, Bahamas, as its headquarters and pursued a regional international-banking model rather than concentrating on one domestic market. The bank expanded its network soon after formation. It opened a Jamaican branch in 1959 and a Trinidad branch in 1960. Its operations covered commercial and international banking in Latin America and the Caribbean, using branches and local banking investments to serve regional customers and cross-border commerce. The institution was also granted a coat of arms by the College of Arms in March 1960. Ownership became more complex during the 1960s. Mellon National Bank acquired 15 percent of BOLAM in 1965, reducing Lloyds' stake to 24 percent. BOLAM closed its Venezuelan offices and acquired a substantial interest in Banco La Guaira Internacional, which had branches in Caracas and La Guaira. In 1968, the Bank of England authorized Mellon to increase its holding to 25 percent. In 1970, BOLSA bought BOLAM. At that point BOLAM had 28 branches across Latin America and the Caribbean. The transaction was followed by the redistribution and renaming of related operations. The Bank of Montreal transferred its Trinidad and Tobago branches and operations to the government, which used the proceeds to establish National Commercial Bank. That institution is now associated with First Citizens Bank. The Bank of Montreal's Jamaican operations were sold to the Jamaican government in 1971 and renamed Bank of Surrey, which closed five months later. BOLAM's absorption was part of a wider Lloyds restructuring. In 1971, Lloyds merged Lloyds Bank Europe, BOLSA, and BOLAM into Lloyds and Bolsa International Bank. Lloyds held 55 percent and Mellon Bank 13 percent. Lloyds subsequently bought out Mellon and the remaining minority investors, and the institution was renamed Lloyds Bank International. The former BOLAM Tokyo branch, opened in 1971, was closed in 1975. The Bank of Montreal's remaining Caribbean businesses also developed through later successor arrangements. In 1983, Bank of Montreal Bahamas Limited became the name of the Bahamian operation. When the Bank of Montreal announced in 1988 that it intended to withdraw from the Bahamas, the Bahamian government intervened. A joint business involving the government and Euro Canadian Bank eventually led to the institution known as Bank of The Bahamas, later associated with International Bank of the Bahamas. These successor developments illustrate how BOLAM's original regional network was gradually dispersed among government-backed and larger international banking institutions. BOLAM itself no longer exists as an independent bank.

• 1975

  Tokyo branch closes

  [1]Bank of London and Montrealen.wikipedia.org

  Lloyds Bank International closes the Tokyo branch originally opened by BOLAM.

• 1971

  International banking reorganization

  [1]Bank of London and Montrealen.wikipedia.org

  Lloyds combines Lloyds Bank Europe, BOLSA, and BOLAM into Lloyds and Bolsa International Bank.

• 1970

  BOLSA acquires BOLAM

  [1]Bank of London and Montrealen.wikipedia.org

  Bank of London and South America purchases BOLAM, which then has 28 branches across Latin America and the Caribbean.

• 1968

  Mellon stake increases

  [1]Bank of London and Montrealen.wikipedia.org

  The Bank of England permits Mellon to raise its interest in BOLAM to 25 percent.

• 1965

  Mellon acquires minority interest

  [1]Bank of London and Montrealen.wikipedia.org

  Mellon National Bank purchases 15 percent of BOLAM.

• 1960

  Trinidad branch opens and coat of arms granted

  [1]Bank of London and Montrealen.wikipedia.org

  The bank opens a Trinidad branch and receives a coat of arms from the College of Arms in March.

• 1959

  Jamaica branch opens

  [1]Bank of London and Montrealen.wikipedia.org

  BOLAM expands its Caribbean presence by opening a branch in Jamaica.

• 1958

  Formation of the joint venture

  [1]Bank of London and Montrealen.wikipedia.org

  Bank of London and South America and Bank of Montreal establish BOLAM as a 50-50 joint venture headquartered in Nassau, Bahamas.

A cross-border commercial bank built around the combined British and Canadian resources of its parent institutions, with a regional focus on Latin America, the Caribbean, and the West Indies.

• Banking · 1958

  Commercial banking

  BOLAM's principal business was commercial banking conducted through a regional branch network. Its geographic design connected British, Canadian, and local banking interests across Latin America and the Caribbean. The available historical record identifies the institution as an international and commercial bank but does not provide a detailed catalogue of individual account, lending, or payment products.

• International banking · 1958

  Regional branch banking

  The bank operated branches and related banking interests across the West Indies, Caribbean, and Latin America. Its network included Jamaica and Trinidad, and by 1970 it comprised 28 branches across the region. Some operations were later sold, renamed, or absorbed by successor banks.

• 1971

  Creation of Lloyds and Bolsa International BankM&A

  Background

  Following the acquisition of BOLAM, Lloyds reorganized several international banking businesses.

  Action taken

  Lloyds merged Lloyds Bank Europe, BOLSA, and BOLAM into Lloyds and Bolsa International Bank.

  Aftermath

  Lloyds later bought out Mellon and other minority shareholders and renamed the institution Lloyds Bank International.

  Source

• 1970

  BOLSA acquires BOLAMM&A

  Background

  The original joint-venture structure had become more complex after Mellon National Bank acquired a minority holding in the 1960s.

  Action taken

  Bank of London and South America purchased BOLAM and assumed control of the regional business.

  Aftermath

  BOLAM's operations were subsequently reorganized with Lloyds-related businesses, while Bank of Montreal operations in several territories were sold or transferred.

  Source

1. 1Bank of London and Montrealen.wikipedia.org