The Oldest Bank in the World

Banca Monte dei Paschi di Siena
dal 1472

Turns out that the cash machine that we use, downstairs from our apartment, is at this bank's branch in Rome.  It is a fine cash machine and gives us Euros whenever we ask.  For us, this is sufficient in a bank so we have been happy with our financial partner here.

Finally we looked at its name and sign--Banca dal 1472.

Double-take: 1472?  Bank since 1472? Yes.


Our bank in Rome.  Sadly, not our motorcycle.

Our Italian bank has been around awhile.  We love that.  Wells Fargo has only been going since stagecoach days in the American West and they don't even have the stagecoaches on their logo any more.  What kind of sense of history is that?

I imagine our bank having a stake in the original journeys of Christoforo Columbus, although he was Genoese, not Sienese.  One of the banking innovations of the era was the concept of spreading risk. Along with the adoption of Arabic numerals, double entry-bookkeeping, and some other significant financial innovations, this risk-spread thing ushered in a new financial era, underpinning the Renaissance and beginning the modern era in Europe. It's easily possible that they had a stake in Columbus' voyage.

All the early banks were financing shipping, from Italy around to Bruges, London and points west. (No doubt also to Wormerveer, the world center of the whale oil industry in the 1500's.) Although we hear about Spain's Queen Isabella selling her jewels to finance Columbus, as far as I can follow this thread she sold them to banks in Northern Italy.  The banks sensibly were requiring some sort of guarantee in case Columbus fell off the edge of the world, causing severe capital loss.

Banca Monte dei Paschi is the oldest bank in the world now.  They have a fabulous collection of art and architecture from the 14 C. onwards. Their headquarters building shown in this picture dates to the early 1400's, but parts date to the Middle Ages.  This fortified castle became the bank headquarters when the bank was founded in 1472.  Obviously, a period in which banks faced more than financial danger.


Bank headquarters in Sienna

Their website gives much of their history which fascinates me--I am really interested in the financial innovations of the period as a foundation for our current world financial system.  I have been exploring the finances of the Medici in Medici Money by Tim Parks.  Now, we are actually banking (well, getting cash) with one of the institutions of the era.  Florence, and the Medicis, conquered Sienna later, forcing our bank to restructure.  Learning the general financial structures underpinning the Renaissance is interesting but it is really fun following those financial and political twists and turns in the fate of our bank.

Our bank has not done that well during the recent world financial downturn.  Some scandals.  Some mismanagement. Some bad luck.  Failed recent ECB stress test.  Credit ratings agencies do not give good reports.  The banks is putting out news releases that they are improving.  Share price tanked but now is going up a bit.  Many of their competitors from the 1400's have gone out of business, including the Medici.  So we hope Banca Monte di Paschi will be able to carry on now too.



Here is our cash machine--"bancomat" in Italian.  Graffiti is ubiquitous here in Rome and even the oldest bank in the world quietly lives with graffiti and stickering.

None of the bad news affects us--we put in our card, get Euros. Not a complex financial transaction.  But we have bonded with our bank and wish it well.