logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Action Movies
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel
Southwest USA


dailyclick
All times in EST

Autism Spectrum Disorders: 4:00 PM

Full Schedule
g
g Renaissance Site

BellaOnline's Renaissance Editor

g

Renaissance Banking

Guest Author - Laura A Zennie

In addition to giving a rise in the arts and sciences, the Renaissance is responsible for giving rise to the banking system. Not surprisingly, this originated in Florence, Italy as did most other Renaissance accomplishments. The great Medici family, who ruled Florence for several centuries, was responsible for this rise in banking. At one time it is estimated that the Medici family was the richest in Europe. Of course, estimating their wealth is almost impossible as they owned numerous priceless works of art.

The Medici bank was started by Giovanni di Bicci de’ Medici. He was not born into a wealthy family. His uncle, however, was a successful banker. He originally started working at his uncle’s bank in the Rome branch, and founded his own bank in 1397 in Florence, while also keeping a branch in Rome. One reason for the great success of his bank was that he moved his main branch to Florence, which had much greater investment opportunities than Rome, and was able to invest the Church’s deposited money for a greater return. Also because of the Church depositing and not withdrawing money, little of his own capital was required for these investments.

The bank flourished under his son, Cosimo de’ Medici, called Cosimo the Elder. By the time he took over when his father died, there were branches in Venice, Naples, which was later replaced by one in Geneva, and Gaeta. They later had branches in London, Bruges, Avignon, Milan, and Lyon.

It was after Cosimo’s death that the bank started to decline and branches started to fail. This was mainly due to the branches lending money to bad credit risks, such as the London branch lending to Edward IV. Further decline happened when his grandson, Lorenzo, referred to as “The Magnificent” for his great interest in the Arts, was not really interested in banking. The bank was dissolved two years after Lorenzo’s death.

Even in its decline, the Medici bank was the largest in Europe. Because of this, many people throughout Europe would only conduct business in gold florins, the coin of Florence, as it was considered the most stable and widely spread. It was the first gold coin in Europe to be struck in significant quantities since the seventh century. It was also a standard size at 54 grains of gold. The fact that there were Florentine banks all over Europe made it the coin of choice for large scale transactions, as opposed to silver bars.

A contribution that can be linked to the Medici and their banking is the general ledger system of debits and credits developed in the double entry accounting system.
This site needs an editor - click to learn more!

Add Renaissance+Banking to Twitter Add Renaissance+Banking to Facebook Add Renaissance+Banking to MySpace Add Renaissance+Banking to Del.icio.us Digg Renaissance+Banking Add Renaissance+Banking to Yahoo My Web Add Renaissance+Banking to Google Bookmarks Add Renaissance+Banking to Stumbleupon Add Renaissance+Banking to Reddit




RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map


For FREE email updates, subscribe to the Renaissance Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Laura A Zennie. All rights reserved.
This content was written by Laura A Zennie. If you wish to use this content in any manner, you need written permission. Contact BellaOnline Administration for details.

g


g features
Printing Press

Da Vinci - Renaissance Man

Religion due to the Renaissance

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor