Bicci De Medici Bank

Economic growth laid the material basis from the Italian Renaissance, from 1050 to 1300, witnessed commercial and financial development, the growing political power of self-governing cities, and great population expansion (cultural achievements)

Next, the rise of commerce in Renaissance Florence was marked by key alliances and the development of the wool industry in the 13th century. The international banking web used by Dati and Pitti was developed earlier when; “[Florence] took over the papal banking monopoly… and established themselves

22. What was the banking family that became prominent in the Hansa and then in all of Europe?

Cosimo de’ Medici was born on September 27, 1389 in Florence, Italy at the time his family was middle class bankers. At a young age his father Giovanni, introduced his son to the family business of banking. As Cosimo grew older, he took on more duties in the family business and eventually became the head of the bank the family owned. When he was a young man he had an important relationship with the Catholic Church, at this time the Church was the dominant religious faith of Europe, the one most powerful men in Europe was the Pope. Cosimo recognized the important role of the Catholic Church and made a friendship with the Pope. After this relationship the Medici banks were handling most of the Church’s financial accounts. Some

During most of the Renaissance in Italy, the Medici family controlled Florence. They were most known for their success in banking and commerce. In these ways they were one of the main reasons for the political development of Florence. They were also known to be one of the biggest patrons of the arts of the time. Giovanni de Medici established in 1397 that Florence would be the Medici’s home. Giovanni was an influential, wealthy citizen, who was also the banker to the papal court. There was even a point in his life that he had even held every political office in Florence. He like most of his family, supported the arts and was a well-known patron. In 1429

Giovanni di Bicci de’ Medici founded the Medici bank in 1397 after splitting from his nephew to establish a bank branch in Florence. As the new bank grew and expanded, so did the wealth and power of the Medici family. When Cosimo il Vecchio de’ Medici, Giovanni’s son, took over the banking business in 1434, the increasing economic power of the Medici family allowed them to establish themselves as effective rulers of Florence while keeping the republican system of government nominally intact. The bank provided the Medici family a combination of economic and political power that facilitated the stability of Medici rule. Thus, the failure of the Medici bank during the reign of Lorenzo il Magnifico was key to the collapse of the Medici

By 1402, the Medici Bank had opened a branch bank in Venice, which was also an important outlet of investment opportunities. While all this was occurring the government system in Florence was slowly being infiltrated by the Medici. Since the Medici were not an elite family, “they seemed to rely more on friends than family for essential services because, the social and political position of the later was too weak”(Kent, 164). Kent touches upon the Medicis early struggles in his article when Giovanni was just starting to grow the bank and their family had not yet reached the status they wished to achieve. Once Cosimo Medici took control of the bank he became of of the most influential Italian citizens during his time due to his political, social, economic and decision making

“Lorenzo inherited not only his grandfather’s love of the arts and literature, but his political wisdom as well. The qualities would earn Lorenzo the title of ‘Magnificent,’ by which he would be deservedly remembered.” Lorenzo de’ Medici was an accomplished scholar and statesman who turned Florence into a center of culture and arts. His inner circle of intellectuals and artists spread humanistic ideas throughout Europe. Under Lorenzo, the Renaissance flourished.

The Medici family's dynasty originated in the banking boom of the Italian peninsula. Many families had established banking empires in this region and one would find Italian banks stretching from the Middle East to London, but the Medici's wealth became great enough where many speculate that they may have been the wealthiest family in Europe in this era. The Medici Bank's founder, Giovanni di Bicci de'Medici, started with very little personal wealth having his father's estate be divided amongst six family members, but was wise enough to make proper investments. Having reason to believe the papacy, which had endured constant turmoil within itself, would return to Rome some day he invested in developing a bank within the city. Upon the papacy's return, his endeavors

“Lorenzo de' Medici, byname Lorenzo the Magnificent, Italian Lorenzo il Magnifico (born January 1, 1449, Florence [Italy] died April 9, 1492, Careggi, near Florence), Florentine statesman, ruler, and patron of the arts and letters, the most brilliant of the Medici. He ruled Florence with his younger brother, Giuliano, (1453-78), from 1469 to 1478 and, after the latter's assassination, was sole ruler from 1478 to 1492” (Encyclopedia Britannica).

The House of Medici, or the Medici family, was a very influential and extremely powerful family during the time of the Renaissance in Italy. The Renaissance took place starting in the late 14th century. During this time, the people started to take interest in and have an appreciation for the classical times. The beginning of this powerful family really begins with Giovanni di Bicci deˈ Medici. He was born in the year 1360 in Florence, Italy. Originally from the Tuscan hillside, the Medici family immigrated to Florence during the 12th century. Giovanni di Bicci deˈ Medici was the man who really got the family moving. He founded the Medici Bank and began using money to gain influence. The Medici Bank eventually became the official bank of

Commerce was not enough to improve wealth. Therefore some merchants also became bankers. All banks became very important and they created a network in the middle ages that served to pay for massive people such as princes. The

The Medici Bank of Florence was the most important financial institution in the 15th century. The Medici Bank was the leader bank for the Roman Catholic curia. It also had branches in the main areas in Italy and around Europe, London, Lyon, Geneva, Bruges and Avignon. Around the end of 1300s, members of the Medici family have been involved in Florentine banking. In 1393, Giovanni di Bicci de’ Medici took the right of possession of the Roman branch of a bank that was owned by one of his Florentine cousins. In 1397, he moved the headquarters of his bank to Florence. Rome was the source of funds at the time, but Florence offered more opportunities and investments.

As “Italy was the cultural leader of Europe” (The Intellectual Renaissance in Italy), the Renaissance served as the needed change for the Medieval World to become the modern world. In politics, Machiavelli introduced a secularized political theory that would guide future rulers without dependence on God. In the economy, merchants became bankers by giving money to the wealthy and receiving interest back. Northern Christian Humanists used the Renaissance to enhance the Church through the encouragement of new education and ideals. The “Renaissance Man” became the example to strive towards in society to perfect one’s self in daily life. Education improved through the integration of classical works from authors, such as Cicero. Painters made Renaissance art distinct from Medieval art through the new technique of perspective. Geographically, Italy stands next to the Mediterranean Sea, allowing abundant trade. The technological creation of the printing press allowed news and writings to spread easily to people. The Renaissance was a bridge from the Medieval to modern world because of Machiavelli’s political theory which modeled a great ruler without God’s help, the combination of Christianity with the Renaissance to encourage religious feeling, society using the “Renaissance Man” to set an example of a perfect man, and the improvement of education by including liberal arts.

The members of the Medici bank also did their work sitting on benches and behind tables. The first location was in Via dell Arte della Lana, also known as, Wool Guild Street. Since they were confronted with different currencies they took out a commission for the conversion of the currency instead of charging interest. Since no interest was applied, there was no sin. Little by little they started expanding into areas such as Florence, Venice, and Rome. The Medici bank was doing everything right. They soon grew to be a powerful financial unit in