Bank of Venice

The Republic of Venice organized its first formal public bank in 1587, the Banco della Piazza di Rialto.

[2] Archival research corrected these accounts, distinguishing between the Republic's financing offices, the business of its private bankers, and the much later public banks.

[1] In 1282 the Republic organized most public finance activities under its Grain Office, which subsequently did a banking business on behalf of the government.

It accepted time deposits from wealthy citizens and foreigners, and advanced loans to government departments and private enterprises.

To ensure the availability of funds, the government mandated the deposit of some types of savings, such as dowries, at the Grain Office.

[5] These financial innovations gave rise to a legend that the Banco del Giro had been created in the twelfth century.

The legend claims that citizens adopted this imaginary money, finding it more convenient than coins, and the Chamber of Loans became the public bank.

The Banco del Giro (Bank of Circulation) was later established to serve a similar purpose, but also in the short run to finance a silver contract for the Venetian mint and several other public debts.