Wikinventia — Atlas of discoveries and inventions · Middle Age

Structured European banking system — Medici Bank

1397 AD · Transmission: Global
LawSystemItalian

Giovanni di Bicci de' Medici founds in 1397 in Florence the Medici Bank, which develops, until 1494, the first modern European banking system: a network of autonomous international branches (Venice, Rome, Bruges, London, Geneva, Lyon), standardized bills of exchange, generalized double-entry bookkeeping, and structured credit for states and the papacy. The ledger-and-double-entry system — codified by Luca Pacioli in 1494, a client and protégé of the Medici — is the foundation of all modern accounting. Earlier medieval banking (Templar, Lombard) operated locally and without the coordinated multi-branch architecture the Medici institutionalize.

InstitutionMedici Bank, Florence
Historical regionRepublic of Florence (present-day Italy)
Primary sourceDe Roover, R. — The Rise and Decline of the Medici Bank, 1397–1494 (Harvard University Press, 1963) — standard academic reference on the Medici Bank
Secondary sourceBritannica — Medici family; Pacioli, L. — Summa de arithmetica, geometria, proportioni et proportionalità (1494)
Original languageItalian / Latin
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