[10] Prior to ATB Financial's formation, Aberhart and Social Credit swept into power in the 1935 Alberta election in a wave of unrest following scandals surrounding the United Farmers Premier John Edward Brownlee.

The Supreme Court of Canada, in answering reference questions posed by the federal government, unanimously ruled that such disallowance was valid.

All three bills were reserved by Lieutenant Governor John C. Bowen, and the federal government posed the reference questions to the Supreme Court.

Subsequently, the Aberhart government created the Alberta Treasury Branches through a series of Orders in Council in late-August and early-September 1938,[14] following the judicial defeat of the Social Credit monetary reforms at the Supreme Court.

[19] Under the interim program, the Treasury Branches issued non-negotiable transfer vouchers in place of regular currency that could be redeemed at participating merchants in the province.

[16][20][21] The one-third Alberta-made program was generally ineffective in increasing domestic market demand as it was easy for consumers to meet the low threshold over the period of one month.

[24] The transfer voucher system worked considerably better than the previous attempt to issue a citizen's dividend in the form of prosperity certificates in 1936.

[27] Expanding into lending services was necessary to gain a stronger presence in retail areas, as many merchants who operate with the Treasury Branches also maintained a separate account at another bank to ensure access to credit.

Furthermore, the government charged consumers a two per cent penalty on cash withdrawals to continue to incentivize Albertans to use non-negotiable transfer vouchers to ensure capital did not flow out of the branches.

[29] Merchants were provided a means to withdraw a certain amount of cash without being charged a penalty in order to replace goods sold for vouchers.

[30] The calculation basic rate system was deemed cumbersome and replaced in February 1941 with a centralized list compiled by the Department of Industries and Labour, based on the type of products and services sold and the location of the business.

All Alberta industries suffered in the early 1980s owing to high interest rates, low world commodity prices, and the National Energy Program.

[45] ATB was the subject of scandal in the late 1980s after clients such as Peter Pocklington's Gainers Foods[48][49] and the Ghermezian Brothers' West Edmonton Mall defaulted on loans.

[50] Automated teller machines were introduced in 1989 and in 1990 the Treasury Branches became the first Canadian financial institution to offer telephone banking services.

[50][51] In the 1990s, the government reformed Alberta Treasury Branches with the intention of transforming it into a financial institution that could compete with Canadian chartered banks.

Mazankowski recommended the government articulate the public policy goals and benchmarks for the institution, ATB must operate at an arms-length from the government, operate under a board of directors, be provided equal treatment against other private sector banks, modernized to allow ATB to compete with modern banks, offer new and in demand financial services and products, deliver programs with a for profit emphasis, remain cost conscious and profit motivated, and be subject to an accountability regime similar to the private sector.

[55] The Alberta Treasury Branches rebranded in January 2002 as ATB Financial in an effort to gain stronger brand recognition in urban areas such as Calgary and Edmonton.

[61] The former superintendent claimed the financing occurred on the orders of Premier Ralph Klein and other provincial politicians, although a probe by the auditor general found no evidence of government direction.

[64] The Parkland Institute further argues against privatization due to the vast network of rural and remote branches ATB operates, which would not be financially viable for a traditional bank without a similar mandate.