Florentine Banking

Timeline

1. 1330–1335Florence · TuscanyFamilies such as the Bardi and Peruzzi established head offices in Florence and opened branches in London, Paris, Bruges, Avignon, and elsewhere, forming a commercial and financial network covering Western Europe and becoming the most important credit intermediaries in fourteenth-century Europe.
2. 1334–1337Avignon · ProvenceFlorentine banks managed taxes and exchange for the papacy in Avignon and extended war loans to monarchs such as Edward III of England; bills of exchange and letters of credit made long-distance bulk transactions possible, and Florence thereby became Europe's financial hub.
3. 1335–1340Florence · TuscanyBy the mid-1330s, the wealth and political influence of Florentine bankers had reached their peak, but excessive dependence on the debt-servicing capacity of royal houses and the papacy, combined with the lack of a central clearing mechanism, left the system vulnerable to devastating bankruptcies in the 1340s after the Hundred Years' War and royal defaults.