Banca Monte dei Paschi

About Banca Monte dei Paschi

The worlds oldest continuously operating bank, founded in Siena in 1472 as a charitable mount of piety. Monte dei Paschi initially provided loans to the poor against collateral. It evolved into a full commercial bank. The bank served the Republic of Siena and later the Grand Duchy of Tuscany. Monte dei Paschi received deposits from popes and Medicis. After 540 years, the bank needed a government bailout in 2017 due to derivative losses hidden by previous management. Italy nationalized Monte dei Paschi, ending its independence. The bank was restructured and returned to partial private ownership. Its survival through five centuries of wars, plagues, and revolutions is remarkable.