This Italian Bank, World’s Oldest Lender, Gives Loans To The Poor – News18

Monte dei Paschi di Siena, the world’s oldest bank, was founded in 1472. Its founding purpose was to provide loans to individuals classified as poor, miserable or needy. The step was initiated during a challenging period for the local economy and was conceived as a Monte Pio at the behest of the Magistracies of the Republic of Siena.

Despite being the fourth largest bank in Italy, Monte dei Paschi di Siena is currently deemed the weakest lender in Europe. With its establishment dating back to the 15th century, it holds a remarkable history of extending loans to individuals long before the discovery of America by Columbus. While the bank thrived for centuries, it faced significant setbacks following the 2008 recession.

Monte dei Paschi di Siena upholds a noble mission of offering loans to the less fortunate and frees them from the clutches of moneylenders. This 550-year-old bank has not only fostered employment opportunities in Siena but has also played a pivotal role in the development of public amenities, including ambulances and kindergartens. This led to the people of Siena considering Monte dei Paschi as the lifeblood of their city.

Apart from business loan services, Monte dei Paschi di Siena also extends loans for charitable causes. The bank has been instrumental in organising the renowned Palio di Siena horse race. Despite persistent talks regarding its potential sale, the bank remains unsold to this day, maintaining its independent status.

A United Nations report reveals that Monte dei Paschi di Siena boasts a customer base of 4.5 million individuals. The bank operates through its 1,500 branches and 200 specialized centres, with 4.5 million customers.

During the global economic recession of 2008, governments backed various countries financially including the USA, Britain, Spain, and Ireland, but Italy did not receive similar support. Unfortunately, even the world’s oldest bank was impacted by the economic downturn.

As per a report by The New York Times, Monte dei Paschi di Siena is currently considered the weakest lender bank in Europe. The bank’s financial condition has even deteriorated due to mismanagement and financial fraud. Even European regulators uncovered evidence of long-standing financial fraud during their investigation.