The Ionian Bank (IB) was a British overseas bank that investors established in 1839 to operate in the Ionian Isles, which was then a British Protectorate. It served also as the central bank of the United States of the Ionian Islands. IB later expanded in Greece and the Eastern Mediterranean. After losing its branches in Egypt to nationalization, IB retreated from the Mediterranean, selling all its operations there. Michael Behrens and John Trusted then acquired Ionian Bank, converting it into a merchant bank in London. This London operation was never very successful and in 1977 it voluntarily gave up its banking licence. The Greek operation, renamed Ionian Popular Bank, was absorbed into Alpha Bank in 2000. History A "decree of the Eminent Senate of the Commonwealth of Ionian Islands" established the Ionian State Bank in 1839, to finance trade between the Ionian Islands (a British protectorate), and Great Britain. This made the bank the oldest in Greece. The bank received a 20-year grant of the exclusive privilege of issuing and circulating banknotes for the Ionian Islands. The bank soon changed its name to Ionian Bank (IB), and initially only operated in the Ionian Islands, opening branches in Corfu, Zakynthos and Kefalonia the following year. In 1845, a year after the bank received a UK royal charter, it established agencies in Athens and Patras, and appointed special agents in Venice and Trieste. In 1864, the Ionian Islands united with Greece. A new charter made IB a Société Anonyme, with the Greek government assuming its debt. That year too IB converted its agencies in Athens and Patras to full branches (possibly before 1864.) IB then extended its operations to the rest of Greece. The Athens office took over as Head Office from the Corfu office in 1873. By 1880 the bank had lost its legal monopoly position in the Islands, but gained an extension to its (no longer exclusive) right of note issue. In 1883, IB gave up its royal charter and registered as a limited liability company. IB retained its Greek charter until 1905 and expanded into Egypt by opening branches in Alexandria in 1907. During World War I, Ionian Bank served Allied military interests in the Balkans, opening branches at Salonika, Syra, Chios and Mitylene. Between the Wars In 1920, Ionian Bank lost its privilege of note issue. Two years later, IB acquired the Constantinople branch of Guaranty Trust Co.