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The modern system of branch banking (in which banks maintain a nationwide system of offices rather than one or two central offices) originated in Scotland. Only strong political pressure during the 19th century prevented the resultant strong banking system from taking over banking in England. However, although Scottish banks proved unwelcome in England at the time, their business model became widely copied, firstly in England and later in the rest of the world.

Banking in Scotland also features unique characteristics. Although the Bank of England remains the central bank for the UK Government, three Scottish corporate banks still issue their own banknotes: (the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank). These notes have no status as legal tender in England, Wales or Northern Ireland (although they can be used throughout the UK, particularly in Northern Ireland, where Irish banks also issue their own banknotes, and they are also freely accepted in the Channel Islands). In Scotland, neither they nor the Bank of England's notes rank as legal tender (as Scots law lacks the concept), however banknotes issued by any of the four banks meet with common acceptance

Scotland retains its own distinct sense of nationhood. Academic research consistently shows that people in Scotland feel Scottish, whilst not necessarily feeling the need to see that translated into the establishment of a fully-independent Scottish nation-state.

Tied as it was to the health of the British Empire, Scotland suffered after the First World War as it had gained beforehand. In the Highlands, which, for cultural reasons, had provided a disproportionate number of recruits for the British army, a whole generation of young men were lost, and many villages and communities suffered greatly. In the Lowlands, particularly Glasgow, the terrible working and living conditions for the industrial workers, many of whom did not agree with the motives of the war, led to industrial and political unrest. John MacLean became a key political figure in Red Clydeside and on Bloody Friday January 31st 1919, the British Government was so fearful of a revolutionary uprising in Glasgow that tanks and soldiers were stationed in George Square.

Scotland also has its own unique family of languages and dialects, helping to foster a strong sense of "Scottish-ness". An organisation called Iomairt Cholm Cille has been set up to support Gaelic-speaking communities in both Scotland and Ireland and to promote links between them.

Scotland currently elects 72 MPs from 72 single-member constituencies to serve in the House of Commons. This is an over-representation and it is expected that the number will be reduced in time for the next General Election. Indeed, the boundary commission for Scotland has recommended a reduction to 59 MPs. This over-representation was widely accepted before to allow for a greater Scottish voice in the Commons, but since the establishment of a Scottish Parliament it has been felt that this is less necessary.

In 1547, after the death of Henry VIII, forces under the English regent Thomas Somerset were victorious at the battle of Pinkie Cleugh, the climax of the Rough Wooing and followed up by occupying Edinburgh. However it was to no avail since Queen Mary was in France and Marie de Guise called on French reinforcements who helped stiffen resistance to the English occupation. By 1550, after a change of regent in England, the English withdrew from Scotland completely.

The feudal system lingered on in Scots law on land ownership, so that a landowner still had obligations to a feudal superior including payment of feu duty. In 1974 legislation began a process of redeeming feuduties so that most of these payments were ended, but it was only with the attention of the Scottish Parliament that a series of acts (http://www.ejcl.org/83/art83-5.html) were passed, the first in 2000, for The Abolition of Feudal Tenure on November 28, 2004.

Scotland's territorial extent is generally that established by the 1237 Treaty of York between Scotland and England and the 1266 Treaty of Perth between Scotland and Norway. Exceptions include the Isle of Mann, which is now a crown dependency outside the United Kingdom, Orkney and Shetland, which are Scottish rather than Danish, and Berwick-upon-Tweed, which was defined as subject to the laws of England by the 1746 Wales and Berwick Act.

In 1512 under a treaty extending the Auld Alliance, all nationals of Scotland and France also became nationals of each other's countries, a status not repealed in France until 1903 and which may never have been repealed in Scotland. However a year later, the Auld Alliance had more disastrous effects when James IV was required to launch an invasion of England to support the French when they were attacked by the English under Henry VIII. The invasion was stopped decisively at the battle of Flodden Field during which the King, many of his nobles, and over 10,000 troops — The Flowers of the Forest — were killed. The extent of the disaster impacted throughout Scotland because of the large numbers killed, and once again Scotland's government lay in the hands of regents.

At one stage, Scottish peers were entitled to elect sixteen representative peers to the House of Lords. In 1963, the Peerage Act was passed, allowing every Scottish peer to sit in the House of Lords. However, since the current Labour government's reforms of that house this is no longer the case and hereditary Scottish peers have to stand for election from amongst all eligible peers to sit in the house as part of a group of 92 entitled to do so.

In 1603, the Scottish King James VI inherited the throne of England, and became James I of England. James moved to London and only returned to Scotland once. In 1707, the Scottish and English Parliaments signed the Treaty of Union, which was deeply unpopular in Scotland, as it had been negotiating from a position of economic weakness and suffering from English tariffs. Implementing the treaty involved dissolving both the English and the Scottish Parliaments, and transferring all their powers to a new Parliament sitting in London which then became the Parliament of the United Kingdom. A customs and monetary union also took place.

The Scottish National Party (SNP) was formed in the 1930s with the aim of achieving Scottish independence. They are broadly on the left-of-centre and are in the European Social-Democratic mould. They are currently the second most popular party electorally, although their highpoint appears to have been in the 1970s.