Money Changers and Banks

During the Middle Ages, every country minted gold and silver coins of varying amounts and sizes. In the expanding international trade, different coins circulated, but domestic consumption could only be paid for using the local currency. Foreign coins had to be exchanged for domestic money. Some merchants began to specialize in currency exchange and money trading. Money changers conducted their business on open markets, often on a bench. This is where their name originated: in Latin, a bench is called "banco," so the money changer was referred to as a "bancarius," and their business became known as a "banco." In Italy, these exchange locations were called "banco," in France "table de change," and in Flanders "wisselbank." In Bruges, in 1300, there were 17-20 such exchanges operating. This number gradually decreased from the 14th century, and by the end of the century, only four remained, located on the St. Peter's Bridge and under the arcades of the Halle de l'Eu. This concentration was also observed in Italy and other European cities.

These bench money changers were the predecessors of private banks. The first private bank was established in Venice in 1157. This was followed by a series of bank foundations during the 13th to 15th centuries. Due to poor public safety, it was not advisable to keep large amounts of gold coins at home, so people entrusted their money to the banks for safekeeping. This led to the accumulation of vast sums of money in the banks within a short time, and they began to lend out money. Loan transactions were initiated, often with "decent" interest rates. The bankers were also businessmen who dealt with everything related to money. The use of precious metals as currency became unreliable due to wear and value fluctuations. Paper money began to be used in Italy around 1300, though it may have appeared earlier. In the 14th and 15th centuries, this new financial technique spread, albeit with some delay, to other parts of Europe.

In the 16th and 17th centuries, large banking houses were established, introducing current account transactions. If an account holder had a payment obligation, the bank issued a cheque for the amount. With this, money could be safely transferred from the payer's account to the seller's account without cash transactions. The promissory note, which is a debt obligation with deferred payment, was also introduced. When people trust the promissory note and it is universally accepted as money, and when they have confidence in the bank that issues it, the banknote is born. While paper money is issued by the state and its acceptance is enforced by law, the banknote is not issued by the state and is accepted because people believe it can be exchanged for gold coins.

Pierre Léon "Histoire économique et sociale du monde" Tome I. L'ouverture du monde XIV. e XVI. siecles, 1977 , ford. Amrein Anna

József Róbert "A pénz története" Móra kiadó, Budapest, 1963