Banking in Venice

About Banking in Venice

Venice was Europes banking center during the medieval period. Venetian bankers developed the bill of exchange, maritime insurance, and double entry bookkeeping. The Rialto, Venices commercial district, was the Wall Street of its day. Venetian banks financed trade with the Byzantine Empire, the Crusades, and the spice trade. The Republic of Venice regulated banks strictly, requiring licenses and audits. Bank failures were punished severely, with bankrupt bankers sometimes exiled. The concept of giro banking, where transfers are made between accounts without physical money, originated in Venice. Venices banking innovations spread to Florence, Genoa, and eventually to Amsterdam and London. The financial foundations of modern capitalism were built in Venice.