The oldest banks in the world: The bank has been around since the beginning of human civilization, when ancient merchants provided grain loans to farmers and traders who transported produce between cities. The barter system, a kind of commerce, was the precursor to the first banks ever established in history.
In Italy, during the early Renaissance and the Middle Ages, the first versions of modern banking emerged. During this period, the Medici Bank, one of the most illustrious banks in history, was founded. The banks on this list have been continuously open for several centuries, despite the fact that the first banks on this list no longer exist.
The oldest bank on this list predates the famous Medici Bank, which closed in 1494.
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Top 10 oldest banks in the world
1. Banca Monte dei Paschi of Siena: The oldest bank still in operation in the world is the Banca Monte dei Paschi di Siena, or BMPS. It was created in 1472 as Monte di Pietà by order of the judiciary of the Republic of Siena and has been in continuous use ever since.
Following the unification of Italy in the 17th and 18th centuries, BMPS expanded its operations throughout the country and provided the first mortgage loans to Italian residents. The fourth largest retail commercial bank in Italy is now BMPS. Like many large banks around the world, BMPS has received bailout funds from the government in recent years in order to continue operating.
2. Berenberg Bank: The Berenberg/Gossler family formed the oldest commercial and private bank in the world in 1590. Officially named Joh. Berenberg, Gossler & Co. KG, Berenberg Bank has been in business ever since. The bank is still owned by a descendant of the original founders and has never changed its legal name or identity.
It bears the names of Johann Berenberg and his son-in-law Johann Hinrich Gossler; the Berenbergs were cloth merchants before becoming commercial bankers. The Gossler and Berenberg family coats of arms are combined in the bank’s emblem, which has never been altered.
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3. Sveriges Riksbank: Sveriges Riksbank, commonly known as Riksbanken, is the central bank of Sweden and the country’s third oldest bank in continuous operation. it is also the oldest central bank in the world.
In order to prevent the monarch from interfering in the affairs of the bank, the Riksdag of the States, which at the time was the second highest authority in Sweden after the king, founded the bank in 1668.
Because it issued an excessive number of banknotes without enough security, Sweden’s former bank, Stockholms Banco, collapsed during the king’s reign. After the founding of a new national legislature in 1866, the bank assumed its current name, Sveriges Riksbank.
The bank closed all of its branches in Sweden after the global financial crisis of the early 2000s and outsourced the processing of coins and banknotes to a private company.
4. C. Hoare & Co: The smallest and oldest private bank in the UK is called C. Hoare & Co. Sir Richard Hoare established it in 1672, and it is still owned by his family today, his parents from the 10th and 11th generation running the business. The bank offers loans, mortgages, savings accounts, tax and estate planning services and other financial products and services to high net worth clients.
The bank established several elements of contemporary banking in the 18th century, including printed checks. C.Hoare & Co, the oldest and one of the most important banks in England, has served a number of personalities including Lord Byron, Jane Austen, Eton College and Catherine of Braganza, wife of King Charles II.
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5. Metzler Bank: Benjamin Metzler established Bankhaus Metzler in 1674 as a textile trading company. Originally from Saxony, Metzler moved to Frankfurt in 1671 and, before founding his own business, spent a few years working as an accountant in a renowned drapery firm.
The company turned into a bank around 1760 and Friedrich Metzler was the family’s first recognized banker. Instead of the stock market, the bank focused on offering personal financial services towards the end of the 19th century. Metzler offers financial services in the present as a merchant bank, in securities operations, as an asset manager and as a corporate finance consultant.
6. Barclays: The sixth oldest bank still in operation is Barclays, one of the largest international financial institutions in the world. John Freame and Thomas Gould founded the first version of the bank in 1690 as a goldsmith banking company. When Freame’s son-in-law James Barclay joined the business as a partner in 1736, people started calling the business “Barclays. Barclays began expanding its business by buying up small English banks in the early 1900s, and it still does today.
Due to its scale and widespread influence, Barclays has been embroiled in a number of controversies, including allegations of tax evasion and money laundering in 2009, manipulation of the US electricity market in 2008 and manipulation of the price of gold in 2008.
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7. Costs: Another English bank that was established in the 17th century is Coutts. A young Scottish goldsmith-banker named John Campbell founded the bank in 1692, which was once a shop. After Campbell’s death in 1712, his family continued to run the business, and in 1755 Polly Campbell Coutts married James Coutts, a businessman and banker.
Polly and her father both died in 1760, leaving James the bank and most of Campbell’s fortune. James gave his own name to the company.
The Royal Bank of Scotland has owned Coutts since 2000. (RBS). RBS has transferred ownership of Coutts International to Union Bancaire Privée for an unknown amount in order to concentrate its operations in the UK.
8. Stadsbank van Lening: In Amsterdam, the Netherlands, the non-profit Bank van Lening (pawnbroker) was established in 1614. Six branches, two businesses and an auction house make up the bank. Gold and silver jewellery, diamonds and other items (such as bicycles, musical instruments and digital cameras) can be used as collateral by Stadsbank van Lening.
These pawned items can all stay in the bank for a maximum of six months. If the previous owners do not buy them back at the end of the term, the objects will become the property of the auction house.
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9. Bank of England: In the beginning, the Bank of England was a private institution that provided banking services to the government. It was created largely to finance the military effort against France. William and Mary, the reigning monarchs at the time, were two of the early investors. On July 27, 1694, the bank is said to have been established.
In 2006, the Bank of England was the scene of the biggest cash theft in British history. The Securitas facility in Tonbridge, Kent was raided and £53,116,760 was stolen.
10. Bank of Scotland: The Scottish Parliament passed a bill on July 17, 1695, creating the Bank of Scotland. It is one of the first banks in the UK and the first and oldest bank in Scotland.
Most of the original 172 shareholders were prominent members of Scotland’s political and business classes. They needed a banking system that would provide merchants and landowners with long-term credit and security. The Bank of Scotland first issued paper money in history in 1696, making it the first bank in all of Europe. The Bank retained the power to issue notes.
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The function of banks in developing a financial system that should support all areas of society makes them one of the most important institutions in the growth of any nation. In the past, the responsibilities of banks included taking deposits, transferring money, converting money, and lending money. While these roles of banks still exist, contemporary banking today places greater emphasis on providing convenient payment methods and a money supply that can adapt to the demands of business sectors. Also, compared to earlier banks, modern banks are more centralized and subject to government regulation.
Edeh Samuel Chukwuemeka ACMC, is a law student and certified mediator/conciliator in Nigeria. He is also a developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is determined to change the legal profession by creating web and mobile applications that will make legal research much easier.