Private banks are banks owned by either an individual or a general partner(s) with limited partner(s). Private banks are not incorporated. In any such case, the creditors can look to both the "entirety of the bank's assets" as well as the entirety of the sole-proprietor's/general-partners' assets.
These banks have a long tradition in Switzerland, dating back to at least the revocation of the Edict of Nantes (1685). Private banks also have a long tradition in the UK where C. Hoare & Co. has been in business since 1672.
There were many private banks in Europe. However most have now become incorporated companies, so the term is rarely true anymore. Today, the term "private bank" can also refer to the financial institution specializing in financial advice and services for high net worth individuals (private banking).
"Private banks" can also refer to non-government owned banks in general, in contrast to government-owned (or nationalized) banks, which were prevalent in communist, socialist and some social democratic states in the 20th century.
Famous quotes containing the words private and/or bank:
“To believe your own thought, to believe that what is true for you in your private heart is true for all men,—that is genius.”
—Ralph Waldo Emerson (1803–1882)
“on a May morwening upon Malverne hilles
Me befel a ferly, of fairye me thoughte;
I was wery ofwandred and wente me to reste
Under a brod bank by a bournes side;
And as I lay and lenede and lookede on the watres,
I slomerede into a sleeping, it swyede so merye.”
—William Langland (1330–1400)