Category: History > Banking
One of the most significant yet often overlooked events in the history of banking was the establishment of the Medici Bank in the 15th century. Founded by Giovanni di Bicci de' Medici in Florence, Italy, this bank revolutionized the concept of banking by introducing double-entry bookkeeping, which allowed for more accurate tracking of financial transactions. This innovative accounting method not only improved the efficiency of banking operations but also laid the groundwork for modern financial systems. The Medici Bank played a crucial role in funding the Renaissance, providing loans to artists and merchants, and significantly influencing the political landscape of Europe through its financial power. The rise and fall of the Medici Bank highlight how finance can shape culture and politics, making it a pivotal moment in history that continues to impact our economy today.