It was established under the economic regime of Governor Lachlan Macquarie (responsible for transitioning the penal settlement of Sydney into a capitalist economy).

At the time, the colony of Sydney had not been supplied with currency, instead barter and promissory notes was the payment method of choice.

The suggestion of establishing a bank was raised in March 1810; but it wasn't until November 1816 that a meeting was held to discuss the real possibility of such a proposal.

Campbell was elected the bank's first president[4] and Edward Smith Hall as its first cashier and secretary.

The arms featured an emu and a black swan (which is symbolic of Western Australia) rampant supporting a shield surmounted by a kangaroo and the emblem of the rising sun.