DescriptionBank of Venice, the first bank with guarantee from the State, is established to relieve the financial burden on the republic, thus making Venice a major center of finance and trade
RateVery important (8)
SphereEconomics & Agrocaltures
The most ancient bank was that of Venice. It is supposed to have been established in 1157. The State being involved in debt, through a long and severe war, the public creditors were formed into a corporation, with peculiar privileges, and the debts were allowed to be transferred from one name to another, much in the same way as our public funds, or the stock of our public banks. It was made a particular regulation that all payments of wholesale merchandise, and bills of exchange, should be in bank money; and that all debtors and creditors should be obliged, the one to carry their money to the bank, the other to receive their payments in banco, so that payments were made by a simple transfer of stock from one account to the other.