First banking activity of the world


How many of us have actually given it a serious thought. Ok let me ask you this question. When did the first banking activity in this world began ? How many of us know an answer to this question . I guess not many so for those who dont know . The first banking activity began during Roman empire . It was name as Bank of Saint George also known as Banco di San Giorgio in Roman ,where moneylenders converted foreign currencies to the legal tender of Rome issued by the Imperial mint.

This was established in 1406 AD in Italy. The bank’s headquarters were at the Palazzo San Giorgio, which was built in the 13th century by order of Guglielmo Boccanegra, uncle of Simone Boccanegra, the first Doge of Genoa.

Many of Genoa’s overseas territories were governed either directly or indirectly by the Bank. In 1453 the Republic handed over governance of Corsica, Gazaria, and a number of other possessions to Bank officials, though over the course of the fifteenth century the Republic gradually reclaimed many of its territories from Bank control.[4] The Taman peninsula remained in the control of the de Ghisolfi family, but the princes of that clan now reported to the Bank.

The Bank lent considerable sums of money to many rulers throughout Europe during the fifteenth and sixteenth centuries, gaining widespread influence. Ferdinand and Isabella maintained accounts there, as did Christopher Columbus. Charles V was heavily in debt to the Bank during much of his reign. Niccolò Machiavelli writes in book VIII, chapter VI of the Istorie Fiorentine:

This establishment presents an instance of what in all the republics, either described or imagined by philosophers, has never been thought of; exhibiting within the same community, and among the same citizens, liberty and tyranny, integrity and corruption, justice and injustice; for this establishment preserves in the city many ancient and venerable customs; and should it happen (as in time it easily may) that the San Giorgio should have possession of the whole city, the republic will become more distinguished than that of Venice.[1]

In the seventeenth century the Bank became heavily involved in maritime trade, and for a time competed with such concerns as the Dutch East India Company and the English East India Company.

After Napoleon invaded Italy, he suppressed independent banks, and this led to the Bank’s closure in 1805

Courtesy of this information is Wiki Pedia. I was reading through it so i thought to share it with my readers.

Hope you will enjoy…Looking forward to hear from my readers… This is Shwetal Signing off for now. I will be back

Shwetal – An Avid Writer.