Venetian Banking System

About Venetian Banking System

Venice developed Europes most sophisticated medieval banking system. The Banco di Rialto, founded in 1587, was a public bank handling state finances. Venetian merchants used bills of exchange, maritime insurance, and partnership contracts. The Venetian ducat became a trusted international currency. Venetian banking law influenced European commercial law. The concept of limited liability for business partners was developed in Venice. Venetian banks financed the Crusades, the spice trade, and European commerce. Shylock from Shakespeares Merchant of Venice reflects the importance of Jewish moneylenders in Venice. The fall of Constantinople in 1453 disrupted but did not destroy Venetian commercial dominance.