Historedia
EuropeEvent

Royal Bank of Scotland Extends First Overdraft

When
1728
Where
Edinburgh
Episodes
1

On 31 May 1728, the Royal Bank of Scotland extended the first overdraft to Edinburgh merchant William Hogg, granting him access to £1,000 in credit. This transaction is recognized as an innovation in modern banking.

Episodes

  1. 31 May 1728 · EdinburghExtension of First Overdraft

    The Royal Bank of Scotland granted William Hogg access to £1,000 credit, establishing the overdraft as a banking innovation.

Background and detail

The Overdraft. The bank invented the overdraft mechanism on 31 May 1728. It specifically allowed William Hogg, a High Street merchant, access to £1,000 in credit. This move was later considered a significant innovation in the history of modern banking practices.

People involved

Sources

  1. Royal Bank of Scotland Wikipedia, revision of 2026-09-07

Machine-drafted from the cited Wikipedia passages and checked by a reviewing model, not by a human editor. Every passage cites the revision it was written from; dates and places follow those passages.