In what year was the Medici Bank founded?

The Medici Bank was founded in 1397. Its establishment is conventionally associated with Giovanni di Bicci de' Medici, who separated his operation from the banking interests of his relative Averardo and moved the business from Rome to Florence.

The bank began modestly, but Giovanni’s position and connections helped it secure important clients, including the papacy. Florence offered access to wealthy merchants and commercial networks, while the Medici family’s financial expertise allowed the institution to expand through branches in major European trading centers.

Under Giovanni’s son Cosimo de' Medici, the bank became a powerful financial and political force. It supported the Medici family’s influence in Florence and helped fund artistic and architectural commissions associated with the Renaissance. The bank later operated branches in cities such as Venice, Milan, Geneva, Lyon, London, and Bruges.

The institution’s peak did not last indefinitely. Poor management, costly loans, political upheaval, and weak branch oversight contributed to its decline. The Medici Bank was eventually liquidated in 1494, nearly a century after its traditionally accepted founding date.