8 Oldest Operational Banks in the World                             

“Happiness: a good bank account, a good cook, and a good digestion.”

– Jean-Jacques Rousseau

Just like Jean-Jacques Rousseau said, a sound bank balance is an important ingredient of happiness today. It implies stability and security. Banks are undoubtedly one of the foundational blocks of any modern economy. They play an important role in shaping the future of a country.

Though modern banks have been here since the medieval ages, the idea of banking predates this by many years. Way back in the 2000 BCE, merchants would offer grain loans to farmers and traders. During the Roman Era in ancient Greece, there were lenders based in temples who gave loans, accepted deposits, and changed money. Some rudimentary forms of banking not only existed in ancient Europe but also in ancient India and China.

It was during the medieval and Renaissance periods, that modern banking started taking root in Italy. Established in 1397 by Giovanni Medici, the Medici Bank was the most renowned Italian bank of the era. With the rise of the Holy Roman Empire, the concept of banking started spreading like wildfire throughout Europe. The world’s oldest modern banks were founded during this time in the 15^th and 17^th centuries.

Let us have a look at some of the oldest banks in the world that are still incredibly in operation.

Bank: Monte dei Paschi di Siena

Country: Italy

Year of Origin: 1472

Known as Daddy Monte, Monte dei Paschi di Siena is the oldest bank in the world that still exists today. It was established in 1472 in Siena, Grand Duchy of Tuscany. Today, it is a part of Italy. At first, the bank’s aim was to offer charitable loans to the poor. Later, it expanded its services. Over the centuries, the Monte dei Paschi di Siena had to go through a lot of economic ups and downs. Still, it has survived till today, cementing its spot in the banking industry. It is interesting to note that Monte dei Paschi di Siena assisted the local people by helping them financially despite the crisis presented by the war.

Bank: Berenberg Bank

Country: Germany

Year of Origin: 1590

Established in 1590 by the Berbenberg family, the Berbenberg Bank, legally known as Joh. Berenberg, Gossler & Co. KG, is the oldest merchant bank in the world. The German bank mainly focuses on private banking and asset management. It is known for offering financial services to wealthy individuals and institutions. It is interesting to note that the bank has been in the same family since its inception in 1590. The family still owns over 30% of the bank. Even the bank’s logo, which combines the coat of arms of the Berenberg and Gossler families, has remained unchanged over the centuries.

Bank: Sveriges Riksbank

Country: Sweden

Year of Origin: 1668

Established in 1668, the Sveriges Riksbank is Sweden’s central bank and the oldest central bank in the world. When it was first founded, it was under the control of the Riksdag of Estates so that the King of Sweden did not have any influence on it. In 1904, the Riksbank earned the exclusive right to print Swedish currency. The bank got its independence from the Swedish government in 1999 so that Sweden could enter the European Union. In the aftermath of the global financial crisis of the 2000s, the bank had to close its Swedish branches and outsource the handling of coins and bills to a private company.

Bank: C. Hoare & Co.

Country: United Kingdom

Year of Origin: 1672

Founded by Sir Richard Hoare in 1672, C. Hoare & Co. is the oldest privately owned bank in the United Kingdom. Incredibly the bank is still owned by the descendants of Sir Richard. C. Hoare & Co. is known for providing highly personalized services to wealthy clients. Over the centuries, it has been successful in weathering a number of financial storms. It is interesting to note that it is England’s oldest bank and can boast of a prestigious list of clientele that included Lord Byron and Jane Austen at one point.  

Bank: Metzler Bank

Country: Germany

Year of Origin: 1674

The Metzler Bank, also known as Bankhaus Metzler, was established by Benjamin Metzler in 1674. Originally hailing from Saxony, Metzler moved to Frankfurt in 1671 and found his own business after working as a bookkeeper in a draper firm. In 1760, Benjamin’s company was shaped into a traditional bank under the stewardship of Christina Barbara Metzler, with Friedrich Metzler being the first official banker. Still owned by the Metzler family, the bank has proved its mettle by surviving over three centuries.

Bank: Barclays

Country: United Kingdom

Year of Origin: 1690

Barclays is one of the most renowned international banks in the world. It was established in 1690 as a goldsmith banking business by John Freame and Thomas Gould. When Freame’s son-in-law, James Barclay, joined the business in 1736, the bank came to be known as Barclays. It is interesting to note that the easily recognizable blue and white Barclays logo,featuring a spread eagle, has been in use since 1777.

Bank: Coutts 

Country: United Kingdom

Year of Origin: 1692

Coutts was founded as a goldsmith’s bank in London by Scottish goldsmith, John Campbell, in 1692. After Campbell died in 1712, thebusiness was inherited by his family. After the marriage of his granddaughter, Polly, to a merchant banker named James Coutts, the bank came to be known as Coutts. Today, Coutts is by the Union Bancaire Privée.

Bank: Bank of England

Country: United Kingdom

Year of Origin: 1694

Founded in 1694, the Bank of England’s primary aim was to be the private banker to the government and fund England’s war with France. In 1725, the bank was authorized to print the paper currency that was used throughout England. In 1946, the Bank of England was nationalized. It now operates independently of any political influence. It is interesting to note that the Bank of England is fondly called the Old Lady of Threadneedle Street.

Conclusion

Banks have evolved to meet the growing needs of the modern population. They now provide a wide range of services to individuals as well as businesses. It is no wonder that banks are the bedrock of modern economies.

Do comment and let me know your thoughts about the oldest banks that are still in operation.