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Period: 400 to
The developement of Modern Banking
During this period the baking system went through many changes including the introduction of paper money, letters of credit, loans, and usage. -
476
The Fall of the western Roman Empire
The fall of the Western Roman empire caused a large decrease in trade. This combined with the churches growing hostility towards usury caused a minor decline in the use of banks and usury. In fact one author stated "a usurer is a bawd to his own money bags, taking a fee that they may engender together" showing the growing hostility towards modern banking. -
Jan 1, 700
The Development of Paper Currency
The earliest form of paper money was developed during a time near the end of the Tang Dynasty. Called "flying cash" they were letters of credit used by merchants as an alternative to cash to adapt to the shortage of copper coins. -
Period: Jan 1, 1000 to Jan 1, 1300
High Middle Ages
During this period merchants were often issued letters of credit in Western Europe so that they could travel long distances and exchange them for the currency of these lands. This allowed trade to flourish as these areas could now become invloved in trade in various areas farther than previously possible. It also freed merchants from the burden of carrying coins and valuable metals on long journeys. -
Period: Jan 18, 1000 to Jan 18, 1500
Medieval period
During the medieval period trade and banking formed a cyclic relationship. Banking during this period expanded as foreigners from diffrent areas would first visit banks upon their arrival to change in their currency for the currency of the area they were in and as trade expanded so did the demand for banks. While at the same time the easily available loans and letters of credit (which freed merchants from carrying valuable coins) encouraged trade particularly over long distances. -
Jan 1, 1024
Goverment issued paper currency
The first paper money was issued under the goverment of the Song Dynasty. The right was from then on reserved to the goverment, to print or produce paper money. -
Jan 1, 1096
The First Crusade
After the Fall of the Western Roman empire the crusades very much helped Banking to re-emerge as a prominent buisnness. This was because the crusades needed to be funded by large amounts of money which needed to be transfered over long distances. This caused a re-emergence of banks and banking across many areas as the crusades traveled over very large distances and into many areas. -
Period: Jan 1, 1254 to Jan 1, 1324
The Life of Marco Pollo
Marco Pollo was remarkable in many aspects but perhaps none more so an his instrument al role in the spread of ideas from east to west.. Marco Pollo whom had lived in China as a court official (since a mongol ruler had taken a liking to him) served a very important role in the develpment of paper currencey and banking, particulary in Europe. He helped to spread the ideas of paper currency and advanced banking which were already in use China from as early as the seventh century CE into the west. -
Period: Jan 18, 1300 to Jan 18, 1500
The expulsion and elimination of Bankers
During this time period in Western Europe many rulers expelled Jews, Italians and Genoans on accounts of being bankers. They would expel or kill these groups and absorb their wealth into the goverment. One great example of this was the arrest of the Templar Knights in 1307 by Phillip IV. This was mainly to prevent the aquisition of too much private wealth and to fill state and church treasuries. -
Jan 1, 1340
The developement of Double-Entry Book keeping
The earliest known full record of double-book keeping was discovered in Genoa. This was a system in which the creditors or "lenders" and the debtors or "owers" (which are both derived from latin roots) accounts are both recorded so that one might easily see whom owes money and how much. This development was also said to have been acheived by Farolfi ledger in 1299-1300 -
Jan 1, 1397
Medici bank
A vital bank in Italy set up by Giovanni Medici. It was one of the first banks to move from market to a respectable castle and establish a wider range of clientel reaching as far as London. It dealt commonly with merchants and royals and was the main banker of even the Pope himself. -
Period: Jan 1, 1400 to Jan 1, 1500
Venice Loan sharks
During this time period in venice banking was becoming a booming industry as trading families developed and loans were in high demand to support the growing cost of war. Trading families were wealthy merchant families whom loaned to nobles and even monarchs at rates of high intrest. -
Jan 1, 1545
An Acte Agaynst Usurie
The act instituted by the catholic church condemning usury which caused a small reduction in the use of intrest and loans. It prohibited Christians and Catholics from participating in such ventures. However the morals and ethics did not cause this problems for Jewish people who majorly picked up the baking system and became known for it. This caused a rif between Jewish bankers and the Catholic Church which is tended to in the Magan Carta as in many later documents. -
Period: to
The Tang Dynasty
The period in which paper money first dveloped as a result of the shortage of copper and became permanant when the goverment found it illogical to ban it.
