A 14th century manuscript depicting bankers in an Italian counting house.
The Bank of Venice was the first national bank to have been established within the boundaries of Europe.[1] The first bank was established in Venice with guarantee from the State in 1157.[2]
According to Macardy this was due to the commercial agency of the Venetians, acting in the interest of the Crusaders of Pope Urban II.[3] The reason is given elsewhere as due to costs of the expansion of the empire under Doge Vitale II Michiel, and to relieve the subsequent financial burden on the republic[4] "a forced loan" was made necessary. To this end the Chamber of Loans, was created to manage the affairs of the forced loan, as to the loans repayment at four percent interest.[4] and continued until the bank was caused to cease to operate during the French invasion of 1797.[1]
