Banking

   From the 14th century on, banking was central to the Florentine economy. Banking families, such as the Bardi, Peruzzi, Medici, and Acciaiuoli, owed their wealth to the making of loans, collection of moneys owed to the papacy and other entities, currency exchange, the arranging of insurance, and the engaging in direct commerce through branches all over Europe, Constantinople, and Jerusalem. The supremacy of the Florentines in the banking industry continued well until the 16th century, though the Bardi and Peruzzi declared bankruptcy in the 1340s when rulers such as Edward III of England and others defaulted on their loans. After the 16th century, the major banking families were the Spinola, Pallavicini, and Sauli of Genoa, who benefited from their dealings with Spain and the silver and gold the Spanish monarchy had obtained from the Americas. Germany at this time also came to the forefront with the establishment of banks by the Fugger and Welser families of Augsburg, whose wealth was determined by their involvement in Hapsburg finances.