Description

Banking on Prince Edward Island,
today controlled by huge conglomerates
headquartered in Central Canada, was
once served by five locally-owned and -
operated institutions. These banks served
Island communities well for the most
part, and contributed to the province's
economic expansion in the latter part of
the 19th century. The Bank of Prince
Edward Island was both the first institution
established in the colony, and the
first one to fail. An examination of its
26-year history reveals a great deal
about the benefits and shortcomings of
small, locally-owned banks.
At mid-century the Island was enjoying
an economic upswing. A need for
circulating currency was felt, as was a
need for a local bank, given the colony's
distance from the Halifax banks.