Banks have been around for centuries, and while some have changed hands, merged and disappeared, many have been serving their customers faithfully for over hundreds of years. This article will explore some of the world’s oldest and most established banks, highlighting interesting facts and background information about their history and longevity.
The History of Banking
The banking industry dates back to ancient civilizations such as the Babylonians, who used money and deposits as early as 2000 BC. The concept of modern banking is often attributed to the financial reforms of the Italian renaissance banker and statesman, Lorenzo de Medici. He developed the concept of double-entry accounting and developed Italy’s first cheques.
The English had their own banking system in the form of goldsmiths, who accepted deposits from the public and issued their own paper money in the form of promissory notes. The goldsmiths are credited with the basis of modern banking, where money deposited can be loaned and invested. Until the late 18th century, banking in Europe was still largely conducted by private banks, and it wasn’t until the industrial revolution of the 19th century that commercial banks began to emerge.
The Oldest Operational Bank
The oldest commercial bank still in operation is Monte dei Paschi di Siena in Italy, which was founded in 1472. The bank has its origins in the Magdalene charity of San Francesco in Siena, which was established in a bid to provide financial assistance in the Siena region. The bank is still family-owned to this day and is the third-largest Italian banking group.
The Oldest Banks in the World
The world’s oldest banks are mostly based in Europe, due to the continent’s long history and tradition of banking. Here are some of the most notable ones:
• Berenberg Bank – Germany (1590)
Berenberg Bank is the world’s oldest surviving merchant bank and one of the few that are still owned and controlled by the founding family, the Berenbergs. It was founded by the brothers Hans and Paul Berenberg in Hamburg, Germany in 1590, and it has remained in the hands of the family for 16 generations.
• Barings Bank – England (1762)
Barings Bank was founded in 1762 by Sir Francis Baring to trade wool. It quickly developed into one of the biggest banks in Europe, and in its heyday, it had possessions in more than 40 countries and its clientele list featured some of the world’s most famous names, such as the Rothschilds and the Dutch East India Company.
• Kreissparkasse Köln – Germany (1822)
This bank is one of the oldest and largest saving banks in Germany. It was founded in 1822 and has since been providing banking services to the citizens of Cologne and the surrounding area.
• Girobank – England (1968)
Girobank was founded in 1968 as a branchless bank operated through the post office network. By the late 80’s, Girobank had become one of the largest banks in Britain, with over 5 million customers.
• Kaunas Bank – Lithuania (1431)
Kaunas Bank is the oldest bank in Lithuania and one of the oldest in the world. It was established in 1431, and it has successfully weathered numerous wars and revolutions to become one of the largest banks in the country.
The Oldest Banks In Other Countries
Banking is an integral part of finance in many countries around the world, and many of them have ancient banks that are still in operation today. Here are some of the oldest banks in prominent countries:
• Banco do Brasil – Brazil (1808)
Banco do Brasil was founded in 1808, making it the oldest and largest bank in Brazil. One of its first and most important functions was to provide financial services to the Portuguese colony of Brazil, as well as to other former colonies around the world.
• Banque de France – France (1800)
Banque de France is the central bank of the country and one of the oldest in the world. Founded in 1800, it is responsible for providing the nation’s banking needs, issuing the Euro and conducting monetary policy.
• Bank of Ireland – Ireland (1782)
The Bank of Ireland is the oldest bank operating in Ireland and one of the oldest in the world. Founded in 1782, it has since grown to become one of the largest financial services groups in Ireland, with a wide range of banking, insurance and asset management products.
• Bank of Scotland – Scotland (1695)
The Bank of Scotland is the oldest bank in the United Kingdom, having been founded in 1695. It is one of the world’s first joint-stock banks and is still one of the five major retail banks in the United Kingdom.
• CAIXA – Portugal (1876)
Caixa is a Portuguese bank founded in 1876 to provide financial services to the Portuguese people. It is now one of the largest banks in Portugal, with a network of over 1,700 branches and over 5 million customers.
Banking has been around for centuries and is still evolving today. The banks listed above have withstood numerous wars and revolutions to remain in service and are living proof of their impressive longevity and resilience. They are a testament to the power of tradition and stability, both of which are essential ingredients in a successful banking institution.
