Neapolitan Banks in the Context of Early Modern Public Banks

Abstract

I examine the Neapolitan public banks, a group of non-profit institutions that emerged in the late sixteenth century, in the context of the early public banks that existed elsewhere in early modern Europe. In terms of size and stability they compare well with their peers, in spite of a difficult political and economic environment. They were also remarkably financially advanced for their time. Their success is likely due to their ownership structure, governance, and well managed relationship with the monarchical authorities.

The Historical Evolution of Central Banking

“…Chartered banks of issue were formally independent, but they were strictly supervised by the Viceroyalty, which also appointed a representative to their boards. The expedient proved successful, and allowed the Neapolitan monetary system to withstand a number of shocks until the Napoleonic wars prompted its reorganization in 1808, with the creation of a monopolistic bank of issue called Banco delle Due Sicilie (De Rosa 1991;Balletta 2008;Velde 2018).…”