How did Medieval Banking Work? (Short Animated Documentary)

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  • Опубликовано: 7 июн 2024
  • Want an extremely simplified overview as to how Banking worked in the Late Medieval Era? No? Well, here's one anyway.
    / histmattersyt
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Комментарии • 1,7 тыс.

  • @sanchobanana3507
    @sanchobanana3507 3 года назад +10130

    Everyone out here talking about James Bisonette, but the real mastermind behind this episode is actually Kelly money-maker

    • @appleslover
      @appleslover 3 года назад +359

      A man of culture*
      😑

    • @uwtartarus
      @uwtartarus 3 года назад +191

      Izzy?

    • @PuckishAngeI
      @PuckishAngeI 3 года назад +253

      "amateurs.."
      "WHAT WAS THAT PUNK?"
      the pastry section: "AMATEURS"

    • @bryantgomez7135
      @bryantgomez7135 3 года назад +146

      But what about Guy Shapel 😭

    • @fatehyabali
      @fatehyabali 3 года назад +158

      @@uwtartarus spinning three plates

  • @af5377
    @af5377 3 года назад +4084

    *Someone:* Pays money back on time
    *The Medicis:* Wait you weren't supposed to do that

    • @jgr7487
      @jgr7487 3 года назад +155

      you can't pay on time if it's due yesterday!

    • @colonelautism9957
      @colonelautism9957 3 года назад +124

      *Someone:* Interest Rates Are Usury
      *The Medicis:* Thats where youre wrong kiddo

    • @TheSuperCoolMan122
      @TheSuperCoolMan122 3 года назад +18

      close the bank when you see someone coming lul

    • @miguelfilo962
      @miguelfilo962 3 года назад +26

      My uncle paid off a loan early. The banker then told him he no longer wanted his business.

    • @nanonymous9139
      @nanonymous9139 3 года назад +7

      @@miguelfilo962 to this day in some jurisdictions there's fine for closing loan prematurely

  • @milo4279
    @milo4279 3 года назад +9264

    imagine walking into a bank like:
    “hey can i get a loan”
    “sorry sir we can’t do that for you”
    “why not?”
    “your credit score is too high”

    • @jabber1990
      @jabber1990 3 года назад +897

      that EXACT conversation happened with a friend of mine. he's trying to get a loan but his credit score is too high so he can't get one at any bank
      he's confused too,

    • @mundogameplay1341
      @mundogameplay1341 3 года назад +355

      @Atlas aït Amazal Banks benefit more if you delay the payment of the loan, I mean, if you don`t pay the loan the interest will raise.
      If you still can`t pay the loan, They will do an embargo!!
      I think that`s how the Bank System works,however, I am not an eXpert

    • @johnladuke6475
      @johnladuke6475 3 года назад +419

      It depends on the type of bank/financial institution and their actual intent in loaning the money, but this absolutely happens. A more obvious example is credit cards. The credit card companies won't offer more/better cards to people who pay in full right on time every time, because they don't generate any interest. However people who carry some balance on the card at all times, never paying it off completely nor maxing out the limit, get offered so many cards they're sick of hearing about new offers. If you generate interest, you're a desirable customer, but if you're bound to pay off early, you're not very profitable.

    • @jimtaylor294
      @jimtaylor294 3 года назад +18

      This's true in the UK too.

    • @trikitrikitriki
      @trikitrikitriki 3 года назад +110

      This is why despite the fact I only owe less than $3000 on student loans I refuse to pay them back in full. I want to build credit

  • @LuckyBird551
    @LuckyBird551 3 года назад +1415

    The Medici: "Okay, the Pope can take us out... but what if WE become the Pope?"

    • @colonelautism9957
      @colonelautism9957 3 года назад +192

      Someone: The pope says usury is sin
      Medici: Yes *but what if we become the Pope?*

    • @luisvilca4467
      @luisvilca4467 3 года назад +47

      Sadly it didn't end well

    • @adamkerman475
      @adamkerman475 3 года назад +5

      Di Ravello is Probably gonna kill the pope oh wait wrong game

    • @jonathanwilliams1065
      @jonathanwilliams1065 3 года назад +11

      @Sin Bad I’ve never seen the show but I know how powerful the Medici were

    • @justanotherbaptistjew5659
      @justanotherbaptistjew5659 3 года назад +5

      Time to nail some stuff to a church door.

  • @rumkeg919
    @rumkeg919 3 года назад +1317

    I wish deadlines for university assignments operated like medieval banks in Europe

    • @Lucasal1296
      @Lucasal1296 3 года назад +198

      "I'll send you my homework with 2 more pages than the expected, but in russian"

    • @rumkeg919
      @rumkeg919 3 года назад +42

      @@Lucasal1296 Без проблем, я прекрасно владею русским

    • @somethingsecretsteersus5115
      @somethingsecretsteersus5115 3 года назад +13

      @@rumkeg919 Это русский язык владеет тобой.

    • @rumkeg919
      @rumkeg919 3 года назад +6

      @@somethingsecretsteersus5115 Значит мною владеют еще 2 языка помимо русского

    • @somethingsecretsteersus5115
      @somethingsecretsteersus5115 3 года назад +4

      @@rumkeg919 Нет. Такое возможно только In Soviet Russia (смекалочка)

  • @tsforteen9928
    @tsforteen9928 3 года назад +826

    King: I need a 10000 Ducat loan
    Lender: Will you pay me back?
    King: I wouldn't bank on it

    • @attiepollard7847
      @attiepollard7847 3 года назад +8

      Then you get no money......... So how you want to do this do you want to take the money or what? Because we got our own private army called the Golden company. Lol

    • @sangralknight3031
      @sangralknight3031 3 года назад +18

      @@attiepollard7847 Yeah... here is the thing, in reality most Condatirii or mercenaries were not stupid. They would not just up and fight a king's army for a bank, ESPECIALLY if they operated in that king's borders. Italy was the exception because there was no centralized rule in italy during the middle ages, it was a bunch of city states and petty kingdoms. Also, you must remember that these conversations usually happend in person, and said king would be right in front of you with a sword and several armed guards ready to kill you just because they did not like you.
      Remember what Circi did to little finger that one time when displaying that power is power? yeah, that was what it was like to talk to a king.

    • @Aimless6
      @Aimless6 3 года назад +2

      Oh, sorry.
      The vaults of your local Red Shield bank is empty. We loaned it all out to the Red Shield bank in a neutral Kingdom and they loaned it out to a bank in another neutral country.... or maybe your enemy.
      If you make peace, then your enemy can pay it's debt and maybe we will have available funds.

    • @Pfsif
      @Pfsif 3 года назад +15

      King, "I have no interest in doing that".

    • @attiepollard7847
      @attiepollard7847 3 года назад

      @@sangralknight3031 so the bank supposedly just take it and shut up and not ask about can I get the money back from the King?

  • @QuestionEverythingButWHY
    @QuestionEverythingButWHY 3 года назад +3328

    “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
    ― Mark Twain

    • @MrKingoffire
      @MrKingoffire 3 года назад +255

      Or you know, by the time it starts to rain, you managed to get your own umbrella and give the old one back.

    • @lexwayfarer5771
      @lexwayfarer5771 3 года назад +147

      @@MrKingoffire with interest

    • @nohbuddy1
      @nohbuddy1 3 года назад +119

      @@MrKingoffire Lol boot licker

    • @Drewman56
      @Drewman56 3 года назад +95

      @@nohbuddy1 truth aint bootlicking

    • @jayasuryangoral-maanyan3901
      @jayasuryangoral-maanyan3901 3 года назад +43

      @@nohbuddy1 I mean if you took a loan you did kind of agree to get fucked afterwards xD

  • @sarpbakrsoy8125
    @sarpbakrsoy8125 3 года назад +1953

    History Matters: "Want an extremely simplified overview as to how Banking worked in the Late Medieval Era?"
    Me, who doesn't even know how banking works in the modern age: *[visible confusion]*

    • @roadhigher
      @roadhigher 3 года назад +150

      Well 'baking' usually works by combining several ingredients and heating them in an oven to produce food. Glad to have helped.

    • @sarpbakrsoy8125
      @sarpbakrsoy8125 3 года назад +72

      @@roadhigher Ah, shoot. Thanks for letting me know. I'll be fixing that.

    • @ddobefaest9334
      @ddobefaest9334 3 года назад +51

      @Luís Filipe Andrade Actually, there's a little bit more. You give your money to a bank and the bank pays you interest for your deposit because... they don't lend out your money that you deposit there. Since the 1690s, under fractional reserve banking, money deposited in a bank allows that bank to simply invent new money by writing a fractional amount of that deposited money into another person's account whenever they come to that bank to take out a loan. That money never existed before. The bank just wrote that this borrowed amount of money is entitled to be withdrawn by this new borrowing customer from whichever branch. The original money you deposited never moves.
      When that new person spends their new borrowed money, the salesperson who received it may deposit it into a different bank, allowing that bank to begin that process of creating new money again whenever yet another customer arrives to take out a loan. The bank will just enter the amount the customer wishes to borrow as new money that now exists.
      Flash forward four hundred years and we now globally have hundreds of trillions of dollars created from this process. Which means that practically, all of the money in the world was all loaned into existence. And a loan is supposedly designed to be paid back.
      Finally, of course, banks charge interest on loaning out this money that they never actually had. What's resulted from this is that there is more collective principal loans and interest owed than there is money in the world available to pay it. It cannot physically all be paid back.
      Does it sound counter-intuitive and made up? Yeah. It does. Isn't that stupid??
      This started in England around the 1690s, after the Glorious revolution. If only somebody would make a ten minute video about that.

    • @thatguyshwag
      @thatguyshwag 3 года назад +1

      *[visible interest]*
      ftfy

    • @ddobefaest9334
      @ddobefaest9334 3 года назад +11

      @Luís Filipe Andrade It's true that government mints print the fiat currency promissory notes. But governments don't make the money when you take out a mortgage or a loan for your business for example. The bank that you go to won't say 'sorry ma'am, let us check how much we have on deposit here. Oh I'm afraid we don't have enough cash here to give you a loan.' They simply type a number into your account and that is new money. Now, likely, you won't go to an ATM to make a fiat currency transaction if you are buying a house. You may just transfer online to the property owner. And there you've just distributed new money into the system that has never existed before.
      If you haven't heard of this before, I intensely encourage you to look up fractional reserve banking. It's on its way to becoming common knowledge now, so there are a bunch of RUclips videos around about it. Some might be a bit long-winded and boring at first, but stick with them. It's a really important concept.

  • @theprofessional155
    @theprofessional155 Год назад +117

    King Phillip had the templars killed because he didn’t want to pay back his loans

  • @wesleyrichards6045
    @wesleyrichards6045 3 года назад +1799

    You’re apparently a credible source according to my nephew. He says he watched you in his history class.

    • @PelegdolevWackyycool
      @PelegdolevWackyycool 3 года назад +100

      I envy your nephew.... I hate my history classes cuz the teacher sucks but ur nephew must have a great history teacher

    • @thethirdsicily4802
      @thethirdsicily4802 3 года назад +15

      Yeah, my history class last year watched his video on the Suez crisis

    • @cottontheeastercottontailr265
      @cottontheeastercottontailr265 3 года назад +9

      Damn lucky I still watch videos from 2009

    • @magnusyarbrough5527
      @magnusyarbrough5527 3 года назад +18

      these are great videos for kids, interesting animations, short, and explains the topics simply.

    • @caseymiradewitt
      @caseymiradewitt 3 года назад +25

      That's a shame, because while these videos are well produced and fun, they get facts wrong pretty much all the time. Just the nature of non-scholarly research and topic compression.

  • @Luboman411
    @Luboman411 2 года назад +337

    Ah, that explains why these banking houses in Italy and Germany kept loaning to the King of Spain and the King of France. These kings were always late on their payments, and I always thought that was so foolish, that these Italian and German banks were willing to lend such huge sums to these irresponsible monarchs. Now I know why the kings were late and why the banks kept lending these kings money...

    • @rodrigovaccari7547
      @rodrigovaccari7547 Год назад +22

      You can't teach a bank how to make money.

    • @joecurran2811
      @joecurran2811 Год назад +1

      ​@@rodrigovaccari7547 They literally make it out of thin air 😂

    • @skiddlyd.244
      @skiddlyd.244 Год назад +4

      Did you watch the video where he said banks wouldn’t charge kings interest or fees so they wouldn’t get excommunicated

    • @panda4247
      @panda4247 11 месяцев назад +1

      That probably applies to their own king. If a foreign king comes, he is a customer as any other, probably

    • @skiddlyd.244
      @skiddlyd.244 11 месяцев назад +1

      @@panda4247 It probably depended on wether or not they had branches open in that particular country.

  • @RebornFitz
    @RebornFitz 3 года назад +179

    The best part is always when someone runs through the flowers

    • @ZiggySA
      @ZiggySA 3 года назад +18

      I'm partial to someone menacingly holding a sign saying 'SOON'

    • @IrishCarney
      @IrishCarney 3 года назад +8

      @@ZiggySA I prefer death by falling down fast with a thud

    • @spk1121
      @spk1121 3 года назад

      I concur, Reborn!

    • @mirzaahmed6589
      @mirzaahmed6589 3 года назад +2

      Fun fact, no.

    • @stevemc01
      @stevemc01 3 года назад +1

      @@IrishCarney Imagine if he did all three in one scene.

  • @stunner9005
    @stunner9005 3 года назад +579

    I'm surprised you didn't have an animation of the Templar's when you said "kings went after families" as homage to the French King destroying them because he didn't want to pay his loan back.

    • @thethirdsicily4802
      @thethirdsicily4802 3 года назад +39

      I still haven't forgiven the french for that

    • @shorewall
      @shorewall 3 года назад +44

      @@thethirdsicily4802Blame it on that specific King. Back then, nations didn't exist, and it was all about the King.

    • @thethirdsicily4802
      @thethirdsicily4802 3 года назад +32

      @@shorewall I know, I'm just being facetious

    • @Doogie2K3
      @Doogie2K3 3 года назад +4

      The Templars did make a cameo at the end.

    • @piersonjamesa
      @piersonjamesa 2 года назад +9

      That's a simplification, it's the estates they owned without having to pay taxes on by decree of the old pope. One of the Louis puts in a French Pope who decides to go after them because they didn't want to merge with the other orders and be under the Pope (French) who was sequestered and subservient to the French king.
      To quote a modern poet, "It's not about the money, it's about the power"

  • @Edmonton-of2ec
    @Edmonton-of2ec 3 года назад +178

    For anyone wondering, the word for bank comes from the Italian word for bench, banco, because much of these original currency exchanges predating formalized banking systems were done on benches.

    • @CrazyDutchguys
      @CrazyDutchguys 2 года назад +7

      Funnily in my language bank also means both couch and bank

    • @adamrodaway9116
      @adamrodaway9116 2 года назад +16

      And if they went bust they were a “banca rotta”, broken bench. Hence, bankrupt.

    • @Edmonton-of2ec
      @Edmonton-of2ec 2 года назад +7

      @@adamrodaway9116 Ha. That’s clever

    • @flavio7180
      @flavio7180 2 года назад +6

      Banco actually means table in Italian, not bench. A bench in Italian is called "Panchina".

    • @himhim3344
      @himhim3344 Год назад +2

      It's the same in German

  • @Mr_Mabasa
    @Mr_Mabasa 3 года назад +192

    "The exception to these rules were Kings and the Pope, who just got the loan for free because 'Please don't kill or excommunicate me' "🤣🤣🤣🤣

    • @Limrasson
      @Limrasson 3 года назад +16

      Then the kings be like: "What if I do anyway?"

    • @ReisskIaue
      @ReisskIaue 2 года назад +5

      @@Limrasson In this case it might be, that every bank will leave the kingdom and not coming again until there is a new king.
      The merchants won't like it either. It is one thing to not pay back the loan, but it is quite different, if there is noone at all where you can get a loan.

    • @Limrasson
      @Limrasson 2 года назад +1

      @@ReisskIaue But I mean where would you miss the loan from if you have already taken everything they had?

    • @ReisskIaue
      @ReisskIaue 2 года назад +2

      @@Limrasson If the king acts against a single bank like you suggest, that specific bank has screwed it. But the other banks might leave immediately.
      And if merchants need new loans after all the banks have left... well, it might be hard to find any.

    • @Limrasson
      @Limrasson 2 года назад +3

      @@ReisskIaue Well, might be true. But also might read up on jewish history see how it actually went down.

  • @tc2241
    @tc2241 3 года назад +192

    “Families were often taken down by kings as quickly as the rose”
    And that’s when bankers quickly discovered mercenaries and paying off the kings court.

    • @bobfg3130
      @bobfg3130 3 года назад +19

      The king's court was paid BY THE KING. Also, how would the banks pay the mercenaries if they couldn't get money out of the people that they've lent money too. Not only that but the court could be itself in debt to that bank or banking family. The court itself could be pressuring the king to destroy a bank.
      In other words...you're wrong.

    • @SmileFile_exe
      @SmileFile_exe Год назад +12

      @@bobfg3130 kid named bribery:

    • @potatosalad9085
      @potatosalad9085 Год назад +3

      @@bobfg3130 kid named fractional reserve banking:

    • @joecurran2811
      @joecurran2811 Год назад +3

      ​@@potatosalad9085 There's no such as fractional reserve banking. Banks simply create money out of thin air.

    • @potatosalad9085
      @potatosalad9085 Год назад +1

      @@joecurran2811 I'm not talking about money printing, FRB does create imaginary money that works out of a logical loophole

  • @mdmjeremiah
    @mdmjeremiah 3 года назад +407

    The last time I was this early I was able to get an interest free loan.

    • @Marinealver
      @Marinealver 3 года назад +19

      and thus you were never allowed to get a loan again.

    • @mdmjeremiah
      @mdmjeremiah 3 года назад +8

      @@Marinealver And here I thought it was because of bad credit.

    • @Perririri
      @Perririri 3 года назад +1

      The last time I was this early, The Trump Train and the Lolita Express were still hooked up together

    • @mirzaahmed6589
      @mirzaahmed6589 3 года назад +1

      But you were expected to not pay it back on time.

    • @robymaru03
      @robymaru03 3 года назад

      When you take a loan you're supposed to multiply that money and share the profits with the bank by paying a little late or renewing the loan before it ends. If you pay early you're making them lose money, for them you basically run off with their money legally.

  • @Rinocapz
    @Rinocapz 3 года назад +62

    "A Lannister always pays his debts" and that's how they got bankrupt.

  • @pridelander06
    @pridelander06 3 года назад +195

    "...and this lead to kings taking advantage of banks."
    Guess the Iron Bank of Braavos actually *won't* have its due.

    • @Chapien
      @Chapien 3 года назад +45

      Well, the Medicis were able to ensure they got their money back because they ruled Florence. Sure, most bankers were easily exploited, but not the Medicis who Braavos are more heavily based on.

    • @colonelautism9957
      @colonelautism9957 3 года назад +19

      The Templars Didn't Kill Themselves

    • @novaterra973
      @novaterra973 3 года назад +8

      @@Chapien Also, they can pay the Faceless Men and afford the exorbitant price.

    • @mijanhoque1740
      @mijanhoque1740 3 года назад +13

      But the Iron Bank isn’t part of westeros and is continentally tied to Essos, so I’m pretty sure they’re exempt from this situation. Also Tywin Lannister himself feared and even said not to underestimate the Iron Bank as everyone lives in its shadow.

    • @45Loan
      @45Loan 3 года назад +13

      They won't get back their loans.
      The Medici Banks went bankrupt because of the Wars Of The Roses. As in the WHOLE Medici Bank network went bankrupt and fell in time, because most of the people who borrowed money for the war were either dead or destitute.

  • @patchworkfellow4262
    @patchworkfellow4262 3 года назад +178

    *Person* : *Forgets to pay bankers back*
    *Medicis* : _You know the rules and so do I_

    • @nahomabreham
      @nahomabreham 3 года назад +9

      Never gonna give you up??

    • @polarnnico
      @polarnnico 3 года назад +5

      It's spelled Medici

    • @samuelluce8286
      @samuelluce8286 3 года назад +3

      Polarn Yeah the misspelling completely ruined the joke for me

    • @fulcrum2951
      @fulcrum2951 3 года назад

      @@nahomabreham Never gonna let you down

    • @gohanssj48
      @gohanssj48 3 года назад +1

      @@polarnnico In Portuguese, is spelled "Medichi" though.

  • @AkademietHistorie
    @AkademietHistorie 3 года назад +54

    There's also the Knight's Templar order, who would let you deposit money in one of their castles and withdraw it in another, essentially creating the first credit notes.

    • @akechijubeimitsuhide
      @akechijubeimitsuhide Год назад +10

      King Philip the Fair: Hmm, the treasury is empty yet again... *starts eyeing the Templars' money*

    • @joecurran2811
      @joecurran2811 Год назад

      The first cheque?

    • @williambrennan104
      @williambrennan104 Год назад

      @@akechijubeimitsuhide More like the Unfair

    • @FauxReal.
      @FauxReal. Год назад

      Phillip in a way did save the Middle East from another crusade

    • @FunkyBuddha81
      @FunkyBuddha81 Год назад

      @@akechijubeimitsuhide yeah only problem is the Templars are the most Badass Knights at the time serving the Pope, good luck little King.

  • @coppeis
    @coppeis 3 года назад +2745

    What about the Jews? I thought they were bankers in the medieval period because they didn't have the issues with interest as they weren't Catholic...

    • @Xanous
      @Xanous 3 года назад +786

      I thought so too. But perhaps that's too hot a topic at this time.

    • @gufosufo337
      @gufosufo337 3 года назад +440

      they absolutely were.

    • @anonvideo738
      @anonvideo738 3 года назад +361

      @UCQDprvyWWJzRXHejBDAVvNQ Why would you. Just let them bank, borrow money, and deport them when they demand their money back. No king would pass up such an opportunity for free cash

    • @jayasuryangoral-maanyan3901
      @jayasuryangoral-maanyan3901 3 года назад +578

      Yeah Christianity only forbid you from adding interest to loans, not taking on loans with interest, so you technically could take a loan with interest as long as you took that loan from a non-christian who's religion didn't forbid adding interest to loans.
      Interestingly the first banks in Europe (I suspect they used the currency exchange rates and international fees route) were rum by the templars. When the king of France couldn't pay them what he owed he went on a campaign accusing them of Satan worship.

    • @degenerate3288
      @degenerate3288 3 года назад +59

      @Deborah Meltrozo
      Yeah in the middle ages religous killed and enslaved other religions
      That was common

  • @mackenziebeeney3764
    @mackenziebeeney3764 3 года назад +18

    “How did Medieval Banking work?”
    “Barely, and when King’s got angry, not at all”

  • @ransofaraway
    @ransofaraway 3 года назад +186

    We need to check this information with James Bisonette's Great Great Great Great Great Great Great Great father.

    • @legowagfles7287
      @legowagfles7287 3 года назад +6

      *Bissonnette
      Ah if you can’t come up with something funny and original, type James’ name. That’ll get you clout

    • @manooxi327
      @manooxi327 3 года назад +7

      @@legowagfles7287 tbh, in this scenario, it's pretty funny & smart as it fits nicely

    • @appleslover
      @appleslover 3 года назад +3

      Mayer Rothschild

    • @syrialak101
      @syrialak101 3 года назад +6

      @@appleslover James Bissonette-Rothschild*

    • @appleslover
      @appleslover 3 года назад

      @@syrialak101 😂👌

  • @JonatasAdoM
    @JonatasAdoM 3 года назад +211

    How about.. a Bank run by the King!
    Let's call it "central bank" or something

    • @Admiral45-10
      @Admiral45-10 3 года назад +7

      Central Bank (or NBP if you're Polish) isn't for everyone. It is a ,,bank of a banks".

    • @sinenominee1454
      @sinenominee1454 3 года назад

      They must have existed in medieval times because who else would print money

    • @edata5898
      @edata5898 3 года назад +18

      @@sinenominee1454 Usually the mint printed money by coining valuable metals. However, they didn't use the Open Market Operations or QEs used today and weren't used to regulate/store bank reserves either.

    • @Admiral45-10
      @Admiral45-10 3 года назад +11

      @@sinenominee1454 no one was printing money back then - king was just knocking out coins with his image on them.
      Actually, lords felt a little gold rush, and tried to make coins as thin as possible (finally, it was possible to knock a coin out on just one side), to save resources to produce it.

    • @sakakaka4064
      @sakakaka4064 3 года назад +1

      ​@@Admiral45-10 ??? Central Banks are for everybody - they print out money we use. They just have different goals than commercial bank.

  • @SeverityOne
    @SeverityOne Год назад +27

    If you want to know what running a bank can do for your family, visit Florence. Or just visit it, it's an absolutely gorgeous place, even by Italian standards.

  • @excitedneuron7849
    @excitedneuron7849 3 года назад +68

    If anyone is interested in more details, I found Geoffrey Parker's "The Army of Flanders and the Spanish Road" had a lot of interesting details on how the money moved around Europe in the 1500s. (In addition to an incredible level of detail on how the Spanish raised, funded, fed and got their army to Netherlands to suppress the revolts).

    • @igordepaulo1061
      @igordepaulo1061 3 года назад +5

      That’s very cool, could you please send the link?

  • @barbiquearea
    @barbiquearea 3 года назад +29

    One series of novels that detailed how banks and bankers did business in medieval times was the Accursed Kings series by Maurice Druon. The books followed Robert of Artois, a French nobleman who had his inheritance stolen from him and plotted throughout the books to get back his birthright, meanwhile he was always short on money and would constantly borrow from his banker friend. That banker was an Italian Lombard living in France name Spinello Tolomei. Although Tolomei was a side character, whenever the books showed events from his perspective, it showed how Tolomei made his money, not only from lending to powerful lords and nobles but also how by doing so he would gain insider information on laws and policies that would then allow him to invest his bank's money to make profit. Through him and his nephew Guccio (who was also a prominent character in the books), we get a whole lot of insights into how banks took people's money and how they made profits from lending that money out and investing it in the 14th century.

    • @akechijubeimitsuhide
      @akechijubeimitsuhide Год назад +1

      That's my favourite book series! I really wish they made a proper high-budget adaptation that wasn't rushed.

    • @cgavin1
      @cgavin1 Год назад

      @@akechijubeimitsuhide Netflix has entered chat. Sorry for your loss. 🤣

    • @robertmcgovern8850
      @robertmcgovern8850 Год назад +2

      Another is Dorothy Dunnett's "House of Niccolo" series. The central character starts his arc as a dyer's apprentice in Bruges, mixes with the Medicis and the power brokers of Venice, then starts his own medieval banking house. Transaction fees were another way these early banks got around the usury rules: I'm not charging you 10% annual interest on this loan -- but there is a 10% administrative fee on our one year notes.😏 Also, pawn brokers could pocket a sort of interest by charging more to redeem an item than they lent against it. A similar package of workarounds can be found in historical & modern Islamic banking, such as the practice of Wadiah.

    • @CarlOttersen
      @CarlOttersen 9 месяцев назад

      @@akechijubeimitsuhide They did, not the one you saw, but a TV series back in the late 1970s. Memorable!

    • @llywrch7116
      @llywrch7116 5 месяцев назад

      @@robertmcgovern8850Adding fees to a loan might appear to be interest under another name, but that does avoid one matter that gets borrowers into trouble: compounding interest. That's where one borrows (say) $1000, only to find in 5 years, despite making regular payments, one now owes $2000: the borrower failed to repay enough to cover both the interest & pay down the principle. (Something modern US law requires banks to inform customers about, notwithstanding borrowers often fail to pay enough to cover both.)

  • @cocomonkilla
    @cocomonkilla 2 года назад +9

    First three seconds aged like milk lmfao

  • @wishywish025
    @wishywish025 3 года назад +147

    This topic is...
    INTEREST-ing
    (of course, I'm just late)

  • @thebarber4397
    @thebarber4397 3 года назад +104

    I think I have an idea for the next video: why wasn't Mongolia annexed by China or the USSR?
    Edit: Wow, he actually did it

    • @Admiral45-10
      @Admiral45-10 3 года назад +17

      It was part of China, then a Soviet puppet.

    • @user-nf9xc7ww7m
      @user-nf9xc7ww7m 3 года назад +9

      Genghis installed a good alarm system. 🤔

    • @TheCimbrianBull
      @TheCimbrianBull 3 года назад +4

      @@user-nf9xc7ww7m
      Genghis Khan was a German group known for the song 'Moskau'. 😂 🤣 😅

    • @googane7755
      @googane7755 3 года назад +10

      During the collapse of the Qing Dynasty, the Russian Empire wanted to grant mongolian independence to establish a buffer state between itself and China. During the Russian civil war, a chinese warlord did invade Mongolia but was repelled by a white army general named Ungern Sternbeg. When the Reds won, they followed the same policy as before by guaranteeing mongolian independence. Under Stalin, he managed to pressure Mao into accepting Mongolian sovereignty which is still in effect today.

    • @TheExodvs
      @TheExodvs 3 года назад +2

      @@googane7755 I think they also forced Chiang Kai-shek to recognize Mongolian nationhood as well in 1946.

  • @vottak5964
    @vottak5964 3 года назад +830

    At the beginning: Not “Банка”, but «Банк».
    Better be «Касса».

    • @augustus8034
      @augustus8034 3 года назад +14

      i lold

    • @pubs8837
      @pubs8837 3 года назад +7

      @@augustus8034 its true though

    • @evilmex1962
      @evilmex1962 3 года назад +5

      ору
      (lmao)

    • @GRANOLA77
      @GRANOLA77 3 года назад +8

      Lmaoo you said kacca

    • @Andartan21
      @Andartan21 3 года назад +25

      Даже интересно - что он ввел в переводчике, что ему выдало слово "банка"?

  • @thewhatifhistorian9431
    @thewhatifhistorian9431 3 года назад +132

    It was rather simple, James Bisonette had all the money and power and generously gave money to his subjects

    • @legowagfles7287
      @legowagfles7287 3 года назад +5

      Welcome to today’s episode of the comments section spells his name wrong and it’s a repetitive meme at this point

    • @thewhatifhistorian9431
      @thewhatifhistorian9431 3 года назад +7

      @@legowagfles7287 I'm sorry, but the memes have already won

    • @daisybrain9423
      @daisybrain9423 3 года назад +4

      @@legowagfles7287 "Repetitive meme" is a pleonasm.

    • @scottd1885
      @scottd1885 3 года назад +1

      @@legowagfles7287 nobody asked

    • @legowagfles7287
      @legowagfles7287 3 года назад +1

      You know a comments section is stale and unoriginal when it’s all his name...you guys need new jokes

  • @ahorrell
    @ahorrell 3 года назад +13

    Dude, you have a gift for finding questions that I didn't know I was interested in, and then answering them.

  • @QuestionEverythingButWHY
    @QuestionEverythingButWHY 3 года назад +142

    “A bank is a place that will lend you money if you can prove that you don't need it.”

    • @yeatnumber1Dmuncher
      @yeatnumber1Dmuncher 3 года назад +4

      This is so deep, can we get a like

    • @jayasuryangoral-maanyan3901
      @jayasuryangoral-maanyan3901 3 года назад +3

      If you know that there's interest you should use the money you borrow to make more money to pay back with interest tho

    • @stevenglowacki8576
      @stevenglowacki8576 3 года назад +10

      Well, they generally want some sort of reassurance that you're not just going to abscond with the money. If you have a significant source of legitimate wealth that's well known but illiquid, banks will gladly lend you the money because they know you're going to be able to pay it back, one way or another. If not in cash, then in the form of rights to that other source of wealth. It's certainly possible to get a loan for a small business from a bank, but you're generally need to have to personally guarantee the loan in case the business fails, and have some sort of skill that you can go back to being employed for to repay the loan. But if you have no established skill set, a bank is not going to risk the money on a new business venture unless they have solid collateral - like a house, which is why most bank loans ordinary people get are secured by the assets that the loan is used to purchase.
      There are lenders out there that aren't really banks (they don't take consumer deposits, they just have large-pocketed investors; this makes them subject to less government scrutiny since they're not holding on to money someone may need to survive) that will lend you money for your business without having any security, but because of the risk involved you will pay interest rates that are illegal for consumer loans, and then you still need to show that you have already been running the business a little while and have incoming cash you can pay them back with. The most notorious of these is On Deck. Whenever I see a client get a loan from them, I know it's basically the beginning of the end. It's like crack for businesses; the high of being flush with cash is gone in a few months as most of your free cash flow is tied up in repayments, and you have to go and get another hit, putting you deeper in the hole.

  • @LookBackHistory
    @LookBackHistory 3 года назад +25

    Medici Family: The Pope says we can't charge interest on loans
    Also the Medici Family: *Becomes the Pope*

  • @voxincaelo
    @voxincaelo 3 года назад +11

    You are one of the only people producing content I NEED. I've been tortured by these questions for years. You provide ANSWERS.

  • @danzoom
    @danzoom 3 года назад +32

    Last time I was so early, there were no jokes about James Bizonette

    • @uekiguy5886
      @uekiguy5886 3 года назад

      Danial -- So why don't you tell us what really happened in the Medieval Era?

    • @migukmoonpark4312
      @migukmoonpark4312 3 года назад +1

      There are no jokes about James Bissonette, only praises.

  • @DarkAvatar1313
    @DarkAvatar1313 2 года назад +6

    Russian Bank in the beginning -- retrieve money -- well that hasn't aged well...

    • @kwando472
      @kwando472 2 года назад

      I was going to comment this but u are faster 🤣

  • @hanafuda
    @hanafuda 2 года назад +6

    The, uh, first scene of this video hasn’t aged particularly well, I don’t think.

  • @WayOutGaming
    @WayOutGaming 3 года назад +22

    Peasant: Might I have a lone?
    Banker: Perhaps? How much debt do you have?
    Peasant: None. I always pay on ti-
    Banker: GET OUT!

    • @jonathanccast
      @jonathanccast 3 года назад

      To be fair, you can *still* get a higher credit score today by keeping a small balance on your credit card month-to-month and paying the interest on it faithfully.

    • @attiepollard7847
      @attiepollard7847 3 года назад

      Lmao funny. But what's wrong with paying it back on time?

    • @WayOutGaming
      @WayOutGaming 3 года назад +3

      @@attiepollard7847 He said in the video that paying on time meant bankers couldn't charge you late fees, which is essentially how they made the bulk of their profit before interest could be charged.

  • @sail2byzantium
    @sail2byzantium 3 года назад +3

    I am always excited when a new video is up for viewing History Matters--but I must say, I really enjoyed this. I teach history and I really learned something here for a brief and yet synoptic overview of early Modern European banking (true for other videos too, but I was really taken with this--esp. on how the ban on usury was gotten around--I just assumed bankers just flouted this in more assertive ways, but couldn't figure out why ecclesiastical penalties didn't accrue . . . ).
    And as always, very entertaining besides with the definite, signature animation.

  • @asfdfa2999
    @asfdfa2999 3 года назад

    I was literally thinking about this yesterday how it worked. I legit got hyped when I saw you post this.

  • @djeurdjel1
    @djeurdjel1 Год назад

    This was veeeeery interesting. Great work guys! Also love that it’s chunk sized!

  • @SoupTurtle16
    @SoupTurtle16 3 года назад +7

    This is a great video! Sometimes it better to see how things worked in history then it is in modern times because the core principle behind people's interest doesn't change. Rather things in modern times get sugar coated with jargon and much more confusing.

  • @audeobellicus
    @audeobellicus 3 года назад +13

    I saw the thumbnail for this video and immediately said, “Ah yes, here come the Medici’s.”

  • @oliversherman2414
    @oliversherman2414 7 месяцев назад

    I love your channel keep up the great stuff

  • @tomaszzalewski4541
    @tomaszzalewski4541 3 года назад +33

    They worked really well - unless you were a member of Templar Order in france

  • @AverytheCubanAmerican
    @AverytheCubanAmerican 3 года назад +19

    The perfect history class includes a lesson from History Matters, powered by James Bissonnette. And a party with treats from the pastry section

  • @brandonrenard5192
    @brandonrenard5192 2 года назад +4

    I like that you used Russia in the intro, because that's no longer the case.

  • @middleearth8809
    @middleearth8809 2 года назад

    Brilliant! Absolutely love your videos.

  • @Alkivo
    @Alkivo 3 года назад

    Wow, I never thought of this before. Great video!

  • @alvin6805
    @alvin6805 2 года назад +9

    I like how well his choice of using a Russian bank at the beginning aged

  • @dddsss2023
    @dddsss2023 11 месяцев назад +5

    it just demonstrates how powerful families such as the Medicis must have been to keep up their operations for centuries without being shut down or forced out

  • @guillaumedugas2367
    @guillaumedugas2367 3 года назад +1

    Hey! Just subscribed to your channel. Great bite-sized historical content, cheers!

  • @oliversherman2414
    @oliversherman2414 7 месяцев назад

    Great video as always 👍

  • @samiamrg7
    @samiamrg7 Год назад +3

    This puts the word “bank account” into a new light. You used to literally have a person “give an account” that you have dealings with a bank in order to confirm that those dealings are real and legitimate.

  • @nekomarulupin
    @nekomarulupin 2 года назад +6

    Big oof at that example in the beginning.

  • @chilcos2791
    @chilcos2791 2 года назад +3

    Lets all agree, this is one of the best history channels out there

  • @cisium1184
    @cisium1184 2 года назад +5

    There is a really fascinating book by a guy named de Roover that lays out exactly how the Medici Bank operated and the ingenious ways they made money. It's one of the best history books I've ever read, which I would never have expected to say of a book about banking.

  • @bertaroo
    @bertaroo 3 года назад +10

    I am here before James Bizzonette

    • @Safinitzine
      @Safinitzine 3 года назад

      You can"t be, he is James Bizzonette O.O

  • @strangeisreal
    @strangeisreal 3 года назад +4

    History Matters, answering questions we never knew mattered

  • @juliandavidarcerodriguez5400
    @juliandavidarcerodriguez5400 3 года назад

    I f*cking love your videos ! They're freaking great and interesting !

  • @bellehogel8665
    @bellehogel8665 3 года назад

    Thanks for that quick blurb on usury and explaing what the de Medici did to get around it. Watched Medici series a while back and was a bit confused.

  • @jmp1983
    @jmp1983 2 года назад +4

    Walks into Russian bank, deposits money, flies halfway around the world, withdrawals cash... "Not in 2022, you don't!"

  • @calus-superiorjackass3906
    @calus-superiorjackass3906 3 года назад +23

    2:21 Now I understand why Louis XIV called himself sunking, he is above the banks

    • @attiepollard7847
      @attiepollard7847 3 года назад +3

      Just like the iron banking game of thrones the medieval bank will get there do. We'll just fund your opposition.

  • @1959ticktock
    @1959ticktock 3 года назад +2

    Probably the perfect History Matters short form video. An explanation of a system both comic and tragic, with a big dose or surreal. Hey, that's history.

  • @McRocket
    @McRocket 3 года назад

    Fascinating.
    Thank you.

  • @mysteryman447
    @mysteryman447 2 года назад +5

    watching this in early march 2022 it’s funny that the first image shown was a russian bank, given current circumstances…

  • @grangermontag1824
    @grangermontag1824 3 года назад +69

    Fun Fact: after interest was legalized, bankers took over the world

    • @user-nf9xc7ww7m
      @user-nf9xc7ww7m 3 года назад +20

      Before interest, life sucked for the peasants. After interest, life sucks but not nearly as bad. Better quality of life...and easier to become a burgher, etc.

  • @alexfranz817
    @alexfranz817 3 года назад +2

    I love all thing that he puts up that are things I didnt know that I wanted to know.

  • @ILUVBlogs1
    @ILUVBlogs1 3 года назад

    Just subscribed your videos are 🙌🏾

  • @TheMAO17
    @TheMAO17 3 года назад +6

    *hears "Medici"*
    *Assassin's Creed 2 Ezio's Family plays*

  • @notabot1798
    @notabot1798 3 года назад +3

    I’d like to see one detailing the way massive ancient armies were coordinated on the battlefield!

  • @kevin_dasilva
    @kevin_dasilva 3 года назад

    i could literally hear a ten minute long video of you saying Renaissance and love it

  • @TheDnaitsirc
    @TheDnaitsirc 3 года назад +1

    Thanks, I had it hard to find "how bank transfers worked without technology" so this is something

  •  2 года назад +15

    In March 2022 depositing money in a Russian bank and retrieving it in America just became a tiny bit harder than this intro wants you to believe...

  • @solinvictus4367
    @solinvictus4367 2 года назад +3

    Man that opening with withdrawing money from a bank in Russia then traveling to the US to retrieve it did not age well at all XD

  • @DACalvinify
    @DACalvinify 3 года назад

    Nice vid!
    Ideas for next vid:
    1. Why was Sakhalin divided into two for the treaty of Portsmouth?
    2. What was life like in the Japanese part of Sakhalin island?
    3. What was life like in the Republic of China pre WW2?

  • @daviddavies3637
    @daviddavies3637 3 года назад

    This is something I had actually been wondering about after watching Medici. Thanks.

  • @NinjaMan47
    @NinjaMan47 3 года назад +3

    "If you owe the bank a hundred dollars, that's your problem. If you owe the bank a hundred million dollars, that's the bank's problem."
    Tldr: Collecting in small loans is easy for the bank but collecting on massive debts (say to a King) are a nightmare.

  • @adythedog
    @adythedog 2 года назад +4

    You missed something extremely important. The banks of antiquity and the Middle Ages functioned quite differently. The main difference is the obligation to keep customer deposits at 100%. Fractional reserve being illegal and sometimes punishable by death. The main role of the banks was not to provide loans, but to provide deposits, for which a fee was paid. The coin was stored like any other commodity.

  • @bobbypetrelli6844
    @bobbypetrelli6844 3 года назад

    Caught this on my homepage. Title and thumbnail grabbed me. I never knew that this was a question I wanted an answer too.

  • @Tenchinu
    @Tenchinu 3 года назад

    Would love to hear more about the history of banks

  • @supersoaker6717
    @supersoaker6717 2 года назад +4

    Well that intro aged well.

  • @vladimirprostakov2862
    @vladimirprostakov2862 3 года назад +3

    I like how in the beginning the sign says "Банка" which means "jar" or a "pot", i guess thats because before if you wrote "Bank" for Google to translate it to Russian it will translate it to jar. It has been fixed now though.

  • @renanfelipedossantos5913
    @renanfelipedossantos5913 2 года назад +2

    Another way to bypass the ban on usury was the "contractum trinius" which consisted of three contracts: one of investment, one of insurance and one for selling the rights to any profit beyond a certain amount. This essentially replicated the effect of interest lending.

  • @grizzle273463
    @grizzle273463 3 года назад

    This was very interesting. I am saddened it was so short.

  • @davebo9615
    @davebo9615 3 года назад +9

    Please do a part 2! When did the church allow banks to charge interest?

    • @MuchWhittering
      @MuchWhittering Год назад +2

      I think it's more a case of banks starting to not care what the church thought.

  • @dnaseb9214
    @dnaseb9214 2 года назад +3

    "You can place your money, travel to the other side of the worls and retreive the money no problem."
    Tell that to Bank of America. I dont think they knew it was possible.

  • @AinsleyTheBard
    @AinsleyTheBard 3 года назад

    There're questions i have always wondered in the back in my head

  • @henripentant1120
    @henripentant1120 2 года назад

    Wish there was more content on this. Was reading the artist formerly known as Richard Blake novels and they give up some really interesting (and varyingly anachronistic) images of the way this all worked in Romania and the implications.

  • @Untitled_Pribor
    @Untitled_Pribor 2 года назад +4

    That example at the beginning aged like milk

  • @rotationalshorts9104
    @rotationalshorts9104 3 года назад +4

    Never knew I needed this.

  • @keshavgupta7025
    @keshavgupta7025 3 года назад

    This channel is too damn addictive

  • @undolf4097
    @undolf4097 3 года назад

    Once again here is History Matters answering a question I didn’t know I wanted to ask

  • @Sinannuncioshasta--k
    @Sinannuncioshasta--k 3 года назад +3

    It’d be interesting to see how investing and (what passed for (?)) stock markets was like during this time period esp. given how new approaches to the logistics of resource distribution (since mercantilism and colonialism) were emerging, which in ‘the long run’ hypothetically were factors to making feudalism and monarchy based overclasses less relevant.

    • @CrazyDutchguys
      @CrazyDutchguys 2 года назад

      During the Dutch golden age. Citizens were able to buy what are essentially stocks for naval trade. You'd literally fund a part of a ship and you got returns on it the same way dividends work, you were able to sell these stocks if you chose. So in effect they were exactly like stocks.

  • @josephjackson1956
    @josephjackson1956 2 года назад +3

    Imagine your credit score being so high that you can’t get a loan from a bank because of an integer overflow that makes your credit score -850.

  • @greenbutter3190
    @greenbutter3190 3 года назад

    Stable video👍

  • @adamdacosta9470
    @adamdacosta9470 3 года назад

    You should provide sources in your video description like how Historia Civilis does because everything you talk about sounds so interesting and I want to know more.