Go way back, and further still.
To Florence, Italy. In 1397. To the establishment of the Medici Bank by Giovanni di Bicci de’ Medici.
There you will find the early framework for interlinking banking, business, and politics to consolidate wealth and power.
The Medici family, during a stretch of the 15th century, was estimated to be the wealthiest family in Europe. The family owned vast amounts of land, gold, and art. And it used its wealth to acquire political power, first in Florence, and then extending out into Italy and Europe.
Strategic marriages also elevated the Medici family’s influence. Catherine de Medici, for example, became the queen of France through her marriage to Henry II.
Not long after Medici Bank, the first real precursor to a modern-day central bank was formed. In 1407, the Banco di San Giorgio was founded. This bank served as the financial institution of the Republic of Genoa. Its initial purpose was to bailout the government. Continue reading