Banca Monte dei Paschi di Siena is the world’s oldest surviving bank and Italy’s third largest bank. Founded in 1472, it was originally formed as The Monte di Pietà or Monte Pio to give loans to the poor. Monte, meaning ‘heap’ or ‘pile’, referred to the collection of money used for charitable distribution.
In the intervening 544 years, the prospects of the bank and the city of Siena became entwined. By 1624, a decision by the Medici Grand Duke to guarantee accounts held at MPS laid the foundations of the deposit protection schemes that are now used to provide confidence to savers in the banking system worldwide. The Grand Duke used the proceeds of pasture he held in the Maremma, in south-western Tuscany, to provide the guarantees.
For centuries, the bank had a reputation of being conservatively run, if generous to the local economy. The bank funded businesses, charities and supported the famous Palio di Siena horse race. Until recently, it was said that the population of Siena either already worked for the bank, aspired to do so, or were already drawing their pensions from it.
Credit : The Guardian
Picture Credit : Google
