The Five Oldest Banks in the World
With so much focus on the demise of banks of all sizes, its easy to imagine the worst doomsday scenarios and wonder if your own bank is next. However, some banks have continued operations throughout civil wars, world wars and economic depressions without going under. These are not the first banks in the world, which trace back to early lending from priests to merchants in 18th century B.C. Babylon and up through the Roman empire, but rather these are five of the oldest surviving banks in the world, and they each tell a story.
Bank of New York (now Bank of New York Mellon)
New York, New York (Founded 1784)
(Source)
It began with a press release in the New York Packet, announcing the plan to form New York’s first bank in 1784. Alexander Hamilton, a respected attorney at the time, drafted the bank’s constitution and led The Bank of New York through its formation and early years. Eight years later, it was the first company to be traded publicly when the New York Stock Exchange opened in 1792. There is also an abundance of history behind Mellon Financial Corporation dating back to the Industrial Revolution, who merged with Bank of New York in 2007 to become Bank of New York Mellon. Today, it is the oldest bank in the United States, and they get to have One Wall Street as their address to prove it.
The Bank of Scotland (now Halifax Bank of Scotland)
Edinburgh, Scotland (Founded 1695)
(Photo Courtesy of HBOS plc Group Archives)
Although the concept of currency and bank notes wasn’t necessarily new to Scotland in the 17th century, the Bank of Scotland was the first to print its own paper currency. Further, it was unique in the sense that it was set up to help businesses, whereas the Bank of England, established one year earlier, existed primarily to finance government defense spending. Early on, it faced fierce rivalry from the Royal Bank of Scotland, and in one instance, RBS (the “new” bank) began hoarding the bank notes issued by Bank of Scotland (Old Bank) in order to present them at once, forcing old Bank of Scotland to call their loans and cease payments for six months. This didn’t sink them though, and this old resilient bank has remained as the only existing commercial institution created by the Parliament of Scotland. The Bank of Scotland merged with Halifax Bank to become HBOS in 2001.
C. Hoare & Co.
London, England (Founded 1672)
(Source)
Before modern street numbering, people used signs to locate a shop, and Sir Richard Hoare couldn’t have chosen a much better symbol than the Sign of the Golden Bottle, as gilded bottles were a sign of luxury and wealth commonly used by the goldsmiths who shaped the precursors to more modern banking systems and paper currency. This private banking institution has proven to be remarkably resilient. Of note is the fact that their building was evacuated during World War II and saved from a fire by a few brave employees. Furthermore, the bank is still completely family-owned and managed by direct descendants of Sir Richard Hoare.
Berenberg Bank
Hamburg, Germany (Founded 1590)
(Source)
Formed in 1590 by Hans and Paul Berenberg, two brothers who ran a cloth trading and import/export business, the company was very lucky to be growing during a time of prosperity in Hamburg, Germany. The city quickly grew as a hub of financial and trading activity, and they were able to thrive along with other members of a small, tight-knit group of Dutch people that didn’t even have full citizenship rights in Hamburg. Berenberg Bank today has offices throughout Europe, and remains Germany’s oldest private bank today.
The Oldest Bank in the World: Banca Monte dei Paschi di Siena
Siena, Italy (Founded 1472)
(Source)
Originally formed as The Monte di Pietà, or Monte Pio, to make loans to the poor out of charity, this is the longest running bank in the world. “Monte,” meaning “heap” or “pile,” referred to the collection of money used for charitable distribution, and the bank truly served to benefit the city’s economy. One interesting historical note is that the citizens of Siena put up income from the land as guarantees against loans for farming and city infrastructure, which led to it being referred to as Monte dei Paschi in reference to the land. Today it stands out as the oldest existing bank in the world by far, and remains an esteemed bank that has branches throughout Italy.
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What about the Royal Bank of Scotland?
Founded 1727
What about the Royal Bank of Scotland?
Totally separate from HBOS
Founded in 1727
This financial crisis kick down many oldest banks in Russia. And we recall our oldest banks too
How about the bank of England established 27 July 1694
Poor research, Swedish Riksbank founded in 1668.
http://en.wikipedia.org/wiki/Sveriges_Riksbank
FilthyRichmond.com doesn’t wipe properly.
Errrrr… If the bank of england was started 1 year before the bank of scotland why isn’t it on the list?
No mention of Bank of England - 1694
http://www.bankofengland.co.uk/about/history/index.htm
Interesting article! Might I suggest a change to your list? Van Lanschot Bankiers in the Netherlands was founded in 1737, so it is older than Bank of New York. Their website is http://www.vanlanschot.com.
The Five Oldest Banks in the World | Deliggit.com…
\r\nThese are not the first banks in the world, which trace back to early lending from…
Bank of Ireland was founded in 1782, making it slightly older than Bank of New York.
more research needed me thinks
What about the Royal Bank of Scotland?
Founded in 1727
When I was in Italy during the years (1997) when Monte dei Paschi di Siena celebrated its 525th jubilee, I heard that it is only the second oldest bank in the world: The oldest would be a bank in Iran (or founded in Persia) which was said to be almost 2000 years old. But I could not find information about this or any confirmation on the web yet.
(Imagine your grand-grand…-parents would have put one Dinar of gold on an account there for you …. how rich one could be today
Oldests, yes. But serious and efficients, too. Looking now in America: the “news, the “tigers”, going down. Is different with Wells Fargo, City Group, etc: those are standing and buying the “tigers”.
might consider adding Fugger Bank from 1487
http://www.historyworld.net/wrldhis/PlainTextHistories.asp?ParagraphID=idu
Hi,
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Mitsui, obtain from Shogunate a permission to act as a money changers, i.e. exchange transaction, bank/fund transfer, lending, providing deposit function to clients, etc in 1683. It is now a part of Sumitomo Mitsui Banking Corporation, oldest and one of the biggest private bank in the world.
No mention of the Rothschilds? If you are gonna do a piece on old school banks, please mention Mayer Amschel Rothschild and his five sons.
I recommend watching The Money Masters.
HBOS (Halifax Bank of Scotland) should not be in this list. It recently collapsed (RIP), and was taken over by Loyds TSB.
Just goes to show that being one of the oldest banks does not make it immune to financial crisis.
(Meanwhile, RBOS lives on)
Rather than calling this article the “Five Oldest Banks in the World,” it seems the author should have called it “Five of the Oldest Banks in the World.” However, the gains in accuracy with the proper title probably wouldn’t offset the gains in publicity this site has gleaned from its erroneous and misleading headline. Such is modern tabloid-style financial “journalism.”
I’m certainly not bookmarking this site; how can I trust information elsewhere on this domain when they can’t even be accurate and honest with their HEADLINES.
i laugh at all who have fact checked this article. muah ha ha.
And RBOS has now been nationalised!
Nice post and you have provided useful information about oldest banks of the world
You have really provided some great information
What about Bank of Sweden (Sveriges Riksbank). Established in 1668. Bank of New York is certainly not on this list. Maybe top 10.
some people need to learn to RTFA perhaps.. this is a list of the 5 oldest banks currently in business.. some of the mentions were obviously 1’s that should of been on the list.. but a few mentioned in comments are not currently operating banks..
The Bank of Amsterdam was founded before that of England, France, or Scotland. The Dutch were very financially prudent c. 1600.
I also have to say that the Banca Monte dei Paschi di Siena is very impressive to still be in existence.
When, where, what was the world’s first bank robbery? The details? Thanks.
There is obviously a lot more to figure out about this issue, but you made some really good points. I will definately be checking here more often. Thank you.
I’m no expert, but if profit related pay is concerned how much of the 650k pension does Fred Goodwin deserve? I believe the government should strip him of the pension he doesnt deserve. The RBS made recorded losses last year of 24 billion UKP.
“My bankers are Hoares.”
What about the Bank of Ireland-1783 (older than the Bank of New York)
Well i surely think that banks such as Barclays Bank which are well known should be there seriously, i mean 1690 compared to the 1700s….
Just to put the english in there place.
The bank of england was founded by a scot