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,
@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
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.
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...
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
@@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.
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.
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]*
@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.
@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 TH-cam 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.
@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
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.
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.
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.
So did Michael the brave. He bought the throne from the Jewish lenders in Constantinopole, and then had their retinues killed when they came to get them back
“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.
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.
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.
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"
@@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 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.
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.
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.
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.
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.
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.
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.
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.
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.
@@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.)
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).
@@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.
@@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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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 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.
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.
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.
"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.
@History Matters - TY. We've made good English subtitles for this video. YT have a new policy that only you can add subtitles. Therefore, please can they be added? Here they are: ------------------------------------------------------------ 0:00:00.080,0:00:06.680 In the modern world, you can enter a bank, deposit money, travel halfway across the planet, and retrieve that money, no issues. 0:00:06.680,0:00:10.820 But could you do this in the past and, with that, how did banks work back then? 0:00:10.820,0:00:14.200 Now, banking hasn't changed all too much throughout European history 0:00:14.200,0:00:19.080 and, as such, we're going to focus on the late Medieval, early Renaissance period for 2 main reasons: 0:00:19.080,0:00:23.540 1) Renaissance banks operated across borders in different states with different laws; 0:00:23.540,0:00:28.940 and 2) the Catholic Church expressly forbid the act of charging interest on loans, a practice known as 'usury', 0:00:28.940,0:00:30.560 which is what we'll begin with. 0:00:30.560,0:00:33.280 So, since a banker couldn't charge interest on a loan, 0:00:33.280,0:00:36.340 how did they make profit and why bother loaning money out at all? 0:00:36.340,0:00:41.880 Well, banking families like the Medicis weren't fools and they managed to get around interest in 2 ways. 0:00:41.880,0:00:46.660 The 1st was via late payment fines: whilst you couldn't charge interest at, say, 10%, 0:00:46.660,0:00:51.040 you could fine someone 10% of the total of the loan if they were late in their payments. 0:00:51.040,0:00:54.240 If you were to, say, pay back a loan on time you'd get no fines, 0:00:54.240,0:00:58.240 but in return, you'd likely be blacklisted by every banking family in existence. 0:00:58.240,0:01:02.040 And so, if you ever wanted another loan again, you'd need to pay it back late. 0:01:02.040,0:01:05.580 The 2nd way they got around interest was via currency conversion. 0:01:05.580,0:01:08.620 You'd get out a loan which would be provided in 1 currency, 0:01:08.620,0:01:13.700 and you'd then pay it back in a different currency at a different time and thus at a different exchange rate. 0:01:13.700,0:01:15.740 The bank would then pocket the difference. 0:01:15.740,0:01:21.760 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'. 0:01:21.760,0:01:27.140 Now, as the process of taking out a loan suggests, you'd be taking out and paying back money in different places, 0:01:27.140,0:01:30.640 meaning that these banks had multiple branches, as the Medicis did. 0:01:30.640,0:01:34.860 So how did these banks confirm details and prevent fraud between the different branches? 0:01:34.860,0:01:38.980 Why couldn't someone simply forge a note saying that they have an account and then run off with the money? 0:01:38.980,0:01:42.220 Well, there were several checks and steps to verify information. 0:01:42.220,0:01:45.140 As many of you will know, banks at this time were run by families 0:01:45.140,0:01:48.380 and members of these families would be sent to the bank's branches to run them. 0:01:48.380,0:01:53.260 These branch managers would know each other quite well and importantly know each other's handwriting well too. 0:01:53.260,0:01:59.820 The bank would then use their own trusted messengers who would travel as fast as they could to the numerous branches to update them on account information. 0:01:59.820,0:02:04.320 Thus it was possible for a person to deposit money in, say, Florence and withdraw it in Paris, 0:02:04.320,0:02:05.400 for a fee, that is. 0:02:05.400,0:02:09.980 Now, all of this was very profitable, but this didn't stop most banks from going bust very quickly, 0:02:09.980,0:02:11.840 and this was mostly down to warfare. 0:02:11.840,0:02:17.680 Kings needed money for wars and having a branch in a Kingdom meant that you were obligated to lend money to the king if they needed it, 0:02:17.680,0:02:20.260 and this led to Kings taking advantage of banks. 0:02:20.260,0:02:25.220 Since they had near absolute authority, they could and did simply refuse to pay the loan back. 0:02:25.220,0:02:28.880 In fact, Kings were often pressured by their own merchants and Lords to do so, 0:02:28.880,0:02:33.780 since this would then force a bank to default and close, meaning that it couldn't collect payments from anyone else. 0:02:33.780,0:02:37.680 And so, that's an extremely simplified way of how medieval banking worked. 0:02:37.680,0:02:42.500 Despite the lack of modern technology or the ability to charge interest, banks were extremely profitable. 0:02:42.500,0:02:48.360 However, it was an extremely risky business too and families were often taken down by Kings as quickly as they rose up. 0:02:48.360,0:02:50.880 I hope you enjoyed this episode and thank you for watching. 0:02:50.880,0:02:52.400 With a special thanks to my patrons: 0:02:52.400,0:02:53.520 James Bissonette 0:02:53.520,0:02:54.360 Kelly Moneymaker 0:02:54.360,0:02:55.380 The Pastry Section 0:02:55.380,0:02:56.260 Marvin Cassow 0:02:56.260,0:02:57.080 Rob Waterhouse 0:02:57.080,0:02:57.600 mo 0:02:57.600,0:02:58.240 AaronTheWhite 0:02:58.240,0:02:59.420 James Castañeda 0:02:59.420,0:03:00.340 Danny Maloney 0:03:00.340,0:03:01.280 Jordon Long-Lay 0:03:01.280,0:03:02.040 Markus Arzner 0:03:02.040,0:03:02.780 Gustav Swan 0:03:02.780,0:03:03.600 Jerry Lambdin 0:03:03.600,0:03:04.320 John Bailey 0:03:04.320,0:03:05.420 Spinning 3 plates 0:03:05.420,0:03:06.260 Rashid Ali 0:03:06.260,0:03:07.260 Calling Castleman 0:03:07.260,0:03:08.100 David Silverman 0:03:08.100,0:03:08.680 Izzy? 0:03:08.680,0:03:09.520 Coppertone 0:03:09.520,0:03:10.520 Maggie Paxkowski 0:03:10.520,0:03:11.320 Winston Caiuwood 0:03:11.320,0:03:11.940 Lexy Schwinn 0:03:11.940,0:03:12.700 Spencer Lightfoot 0:03:12.700,0:03:13.520 Robert Wetzel 0:03:13.520,0:03:14.360 Fortunate Calf 0:03:14.360,0:03:15.200 Anthony Beckett 0:03:15.200,0:03:16.400 and: Skye Chappell
Fun fact: Kelly Moneymaker is a singer, she has her own TH-cam channel and has performed on Jay Leno as part of a group! Well, those were three fun facts!
"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.
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?
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.
Merchant: Sorry, squire. We don’t take cash. It’s medieval times, remember? Shopper: Ok, then. I’ll pay by check. Pull out chisel and proceeds to engrave details into side of mountain.
I have always imagined a medieval king accidentally time traveling to modern days and then, not knowing what to do he would walk into a supermarket or any grocery store and be amazed
Even before the late middle ages, during the Crusades the Knights Templar became the first truly International bankers, pilgrims could deposit money with Templar houses in various European countries and receive a certificate of deposit that could be exchanged for cash as and when needed.The actual financial details were always in the Templar's own sophisticated code to ensure security.
Templars: You owe us money, your majesty. Phillip IV: help! I’m being harassed by Usury heretics! Pope: hold up! These are my men, and I get a say in how they’re treated! Phillip IV: nevermind, I’ll just burned them all at the stake!
I don't think there were any formal schools, for the most part. A child would usually either take up his father's trade, or find someone willing to train him to become their apprentice. But most people were serfs, farmers who took care of their lord's fields in exchange for protection in the event of war. The nobility had private tutors. Illiteracy was widespread, and few people had the time or the means to leave the social class they were born into.
I woke up this morning not knowing that in the evening i'd watch a video from some random guy on the internet explaining with an animation how medieval banks work. I'm happy i woke up this morning
Everyone out here talking about James Bisonette, but the real mastermind behind this episode is actually Kelly money-maker
A man of culture*
😑
Izzy?
"amateurs.."
"WHAT WAS THAT PUNK?"
the pastry section: "AMATEURS"
But what about Guy Shapel 😭
@@uwtartarus spinning three plates
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”
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,
@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
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.
This's true in the UK too.
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
*Someone:* Pays money back on time
*The Medicis:* Wait you weren't supposed to do that
you can't pay on time if it's due yesterday!
*Someone:* Interest Rates Are Usury
*The Medicis:* Thats where youre wrong kiddo
close the bank when you see someone coming lul
My uncle paid off a loan early. The banker then told him he no longer wanted his business.
@@miguelfilo962 to this day in some jurisdictions there's fine for closing loan prematurely
I wish deadlines for university assignments operated like medieval banks in Europe
"I'll send you my homework with 2 more pages than the expected, but in russian"
@@Lucasal1296 Без проблем, я прекрасно владею русским
@@rumkeg919 Это русский язык владеет тобой.
@@somethingsecretsteersus5115 Значит мною владеют еще 2 языка помимо русского
@@rumkeg919 Нет. Такое возможно только In Soviet Russia (смекалочка)
“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
Or you know, by the time it starts to rain, you managed to get your own umbrella and give the old one back.
@@MrKingoffire with interest
@@MrKingoffire Lol boot licker
@@nohbuddy1 truth aint bootlicking
@@nohbuddy1 I mean if you took a loan you did kind of agree to get fucked afterwards xD
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...
You can't teach a bank how to make money.
@@rodrigovaccari7547 They literally make it out of thin air 😂
Did you watch the video where he said banks wouldn’t charge kings interest or fees so they wouldn’t get excommunicated
That probably applies to their own king. If a foreign king comes, he is a customer as any other, probably
@@panda4247 It probably depended on wether or not they had branches open in that particular country.
The Medici: "Okay, the Pope can take us out... but what if WE become the Pope?"
Someone: The pope says usury is sin
Medici: Yes *but what if we become the Pope?*
Sadly it didn't end well
Di Ravello is Probably gonna kill the pope oh wait wrong game
@Sin Bad I’ve never seen the show but I know how powerful the Medici were
Time to nail some stuff to a church door.
King: I need a 10000 Ducat loan
Lender: Will you pay me back?
King: I wouldn't bank on it
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
@@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.
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.
King, "I have no interest in doing that".
@@sangralknight3031 so the bank supposedly just take it and shut up and not ask about can I get the money back from the King?
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]*
Well 'baking' usually works by combining several ingredients and heating them in an oven to produce food. Glad to have helped.
@@roadhigher Ah, shoot. Thanks for letting me know. I'll be fixing that.
@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.
*[visible interest]*
ftfy
@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 TH-cam 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.
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...
I thought so too. But perhaps that's too hot a topic at this time.
they absolutely were.
@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
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.
@Deborah Meltrozo
Yeah in the middle ages religous killed and enslaved other religions
That was common
You’re apparently a credible source according to my nephew. He says he watched you in his history class.
I envy your nephew.... I hate my history classes cuz the teacher sucks but ur nephew must have a great history teacher
Yeah, my history class last year watched his video on the Suez crisis
Damn lucky I still watch videos from 2009
these are great videos for kids, interesting animations, short, and explains the topics simply.
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.
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.
Funnily in my language bank also means both couch and bank
And if they went bust they were a “banca rotta”, broken bench. Hence, bankrupt.
@@adamrodaway9116 Ha. That’s clever
Banco actually means table in Italian, not bench. A bench in Italian is called "Panchina".
It's the same in German
King Phillip had the templars killed because he didn’t want to pay back his loans
GTA MONEY MAN?!?!?! WHY ARE YOU HERE LMAO
Nice to see you here
Based
Big brain moves
So did Michael the brave. He bought the throne from the Jewish lenders in Constantinopole, and then had their retinues killed when they came to get them back
“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.
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.
@@bobfg3130 kid named bribery:
@@bobfg3130 kid named fractional reserve banking:
@@potatosalad9085 There's no such as fractional reserve banking. Banks simply create money out of thin air.
@@joecurran2811 I'm not talking about money printing, FRB does create imaginary money that works out of a logical loophole
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.
I still haven't forgiven the french for that
@@thethirdsicily4802Blame it on that specific King. Back then, nations didn't exist, and it was all about the King.
@@shorewall I know, I'm just being facetious
The Templars did make a cameo at the end.
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"
The best part is always when someone runs through the flowers
I'm partial to someone menacingly holding a sign saying 'SOON'
@@ZiggySA I prefer death by falling down fast with a thud
I concur, Reborn!
Fun fact, no.
@@IrishCarney Imagine if he did all three in one scene.
"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' "🤣🤣🤣🤣
Then the kings be like: "What if I do anyway?"
@@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.
@@ReisskIaue But I mean where would you miss the loan from if you have already taken everything they had?
@@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.
@@ReisskIaue Well, might be true. But also might read up on jewish history see how it actually went down.
The last time I was this early I was able to get an interest free loan.
and thus you were never allowed to get a loan again.
@@Marinealver And here I thought it was because of bad credit.
The last time I was this early, The Trump Train and the Lolita Express were still hooked up together
But you were expected to not pay it back on time.
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.
"...and this lead to kings taking advantage of banks."
Guess the Iron Bank of Braavos actually *won't* have its due.
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.
The Templars Didn't Kill Themselves
@@Chapien Also, they can pay the Faceless Men and afford the exorbitant price.
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.
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.
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.
King Philip the Fair: Hmm, the treasury is empty yet again... *starts eyeing the Templars' money*
The first cheque?
@@akechijubeimitsuhide More like the Unfair
Phillip in a way did save the Middle East from another crusade
@@akechijubeimitsuhide yeah only problem is the Templars are the most Badass Knights at the time serving the Pope, good luck little King.
"A Lannister always pays his debts" and that's how they got bankrupt.
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.
Dude, you have a gift for finding questions that I didn't know I was interested in, and then answering them.
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.
That's my favourite book series! I really wish they made a proper high-budget adaptation that wasn't rushed.
@@akechijubeimitsuhide Netflix has entered chat. Sorry for your loss. 🤣
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.
@@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.)
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).
That’s very cool, could you please send the link?
You are one of the only people producing content I NEED. I've been tortured by these questions for years. You provide ANSWERS.
*Person* : *Forgets to pay bankers back*
*Medicis* : _You know the rules and so do I_
Never gonna give you up??
It's spelled Medici
Polarn Yeah the misspelling completely ruined the joke for me
@@nahomabreham Never gonna let you down
@@polarnnico In Portuguese, is spelled "Medichi" though.
“How did Medieval Banking work?”
“Barely, and when King’s got angry, not at all”
We need to check this information with James Bisonette's Great Great Great Great Great Great Great Great father.
*Bissonnette
Ah if you can’t come up with something funny and original, type James’ name. That’ll get you clout
@@legowagfles7287 tbh, in this scenario, it's pretty funny & smart as it fits nicely
Mayer Rothschild
@@appleslover James Bissonette-Rothschild*
@@syrialak101 😂👌
This topic is...
INTEREST-ing
(of course, I'm just late)
* comedic rimshot *
*slow claps*
How about.. a Bank run by the King!
Let's call it "central bank" or something
Central Bank (or NBP if you're Polish) isn't for everyone. It is a ,,bank of a banks".
They must have existed in medieval times because who else would print money
@@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.
@@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.
@@Admiral45-10 ??? Central Banks are for everybody - they print out money we use. They just have different goals than commercial bank.
“A bank is a place that will lend you money if you can prove that you don't need it.”
This is so deep, can we get a like
If you know that there's interest you should use the money you borrow to make more money to pay back with interest tho
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.
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.
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
It was part of China, then a Soviet puppet.
Genghis installed a good alarm system. 🤔
@@리주민
Genghis Khan was a German group known for the song 'Moskau'. 😂 🤣 😅
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.
@@googane7755 I think they also forced Chiang Kai-shek to recognize Mongolian nationhood as well in 1946.
It was rather simple, James Bisonette had all the money and power and generously gave money to his subjects
Welcome to today’s episode of the comments section spells his name wrong and it’s a repetitive meme at this point
@@legowagfles7287 I'm sorry, but the memes have already won
@@legowagfles7287 "Repetitive meme" is a pleonasm.
@@legowagfles7287 nobody asked
You know a comments section is stale and unoriginal when it’s all his name...you guys need new jokes
At the beginning: Not “Банка”, but «Банк».
Better be «Касса».
i lold
@@augustus8034 its true though
ору
(lmao)
Lmaoo you said kacca
Даже интересно - что он ввел в переводчике, что ему выдало слово "банка"?
Lets all agree, this is one of the best history channels out there
Medici Family: The Pope says we can't charge interest on loans
Also the Medici Family: *Becomes the Pope*
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.
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.
Last time I was so early, there were no jokes about James Bizonette
Danial -- So why don't you tell us what really happened in the Medieval Era?
There are no jokes about James Bissonette, only praises.
They worked really well - unless you were a member of Templar Order in france
2:21 Now I understand why Louis XIV called himself sunking, he is above the banks
Just like the iron banking game of thrones the medieval bank will get there do. We'll just fund your opposition.
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
I saw the thumbnail for this video and immediately said, “Ah yes, here come the Medici’s.”
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.
I like how well his choice of using a Russian bank at the beginning aged
The perfect history class includes a lesson from History Matters, powered by James Bissonnette. And a party with treats from the pastry section
History Matters, answering questions we never knew mattered
I was literally thinking about this yesterday how it worked. I legit got hyped when I saw you post this.
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.
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.
Peasant: Might I have a lone?
Banker: Perhaps? How much debt do you have?
Peasant: None. I always pay on ti-
Banker: GET OUT!
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.
Lmao funny. But what's wrong with paying it back on time?
@@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.
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.
I’d like to see one detailing the way massive ancient armies were coordinated on the battlefield!
0:00 This is a typo. In Russian, банка means jar, the actual world for bank in Russian is банк.
Fun Fact: after interest was legalized, bankers took over the world
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.
Thanks, I had it hard to find "how bank transfers worked without technology" so this is something
The, uh, first scene of this video hasn’t aged particularly well, I don’t think.
This was veeeeery interesting. Great work guys! Also love that it’s chunk sized!
"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.
@History Matters - TY. We've made good English subtitles for this video. YT have a new policy that only you can add subtitles.
Therefore, please can they be added?
Here they are:
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0:00:00.080,0:00:06.680
In the modern world, you can enter a bank, deposit money, travel halfway across the planet, and retrieve that money, no issues.
0:00:06.680,0:00:10.820
But could you do this in the past
and, with that, how did banks work back then?
0:00:10.820,0:00:14.200
Now, banking hasn't changed all too much throughout European history
0:00:14.200,0:00:19.080
and, as such, we're going to focus on the late Medieval, early Renaissance period for 2 main reasons:
0:00:19.080,0:00:23.540
1) Renaissance banks operated across borders in different states with different laws;
0:00:23.540,0:00:28.940
and 2) the Catholic Church expressly forbid the act of charging interest on loans, a practice known as 'usury',
0:00:28.940,0:00:30.560
which is what we'll begin with.
0:00:30.560,0:00:33.280
So, since a banker couldn't charge interest on a loan,
0:00:33.280,0:00:36.340
how did they make profit and why bother loaning money out at all?
0:00:36.340,0:00:41.880
Well, banking families like the Medicis weren't fools and they managed to get around interest in 2 ways.
0:00:41.880,0:00:46.660
The 1st was via late payment fines: whilst you couldn't charge interest at, say, 10%,
0:00:46.660,0:00:51.040
you could fine someone 10% of the total of the loan if they were late in their payments.
0:00:51.040,0:00:54.240
If you were to, say, pay back a loan on time you'd get no fines,
0:00:54.240,0:00:58.240
but in return, you'd likely be blacklisted by every banking family in existence.
0:00:58.240,0:01:02.040
And so, if you ever wanted another loan again, you'd need to pay it back late.
0:01:02.040,0:01:05.580
The 2nd way they got around interest was via currency conversion.
0:01:05.580,0:01:08.620
You'd get out a loan which would be provided in 1 currency,
0:01:08.620,0:01:13.700
and you'd then pay it back in a different currency at a different time and thus at a different exchange rate.
0:01:13.700,0:01:15.740
The bank would then pocket the difference.
0:01:15.740,0:01:21.760
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'.
0:01:21.760,0:01:27.140
Now, as the process of taking out a loan suggests, you'd be taking out and paying back money in different places,
0:01:27.140,0:01:30.640
meaning that these banks had multiple branches,
as the Medicis did.
0:01:30.640,0:01:34.860
So how did these banks confirm details and prevent fraud between the different branches?
0:01:34.860,0:01:38.980
Why couldn't someone simply forge a note saying that they have an account and then run off with the money?
0:01:38.980,0:01:42.220
Well, there were several checks and steps to verify information.
0:01:42.220,0:01:45.140
As many of you will know,
banks at this time were run by families
0:01:45.140,0:01:48.380
and members of these families would be sent to the bank's branches to run them.
0:01:48.380,0:01:53.260
These branch managers would know each other quite well and importantly know each other's handwriting well too.
0:01:53.260,0:01:59.820
The bank would then use their own trusted messengers who would travel as fast as they could to the numerous branches to update them on account information.
0:01:59.820,0:02:04.320
Thus it was possible for a person to deposit money in, say, Florence and withdraw it in Paris,
0:02:04.320,0:02:05.400
for a fee, that is.
0:02:05.400,0:02:09.980
Now, all of this was very profitable,
but this didn't stop most banks from going bust very quickly,
0:02:09.980,0:02:11.840
and this was mostly down to warfare.
0:02:11.840,0:02:17.680
Kings needed money for wars and having a branch in a Kingdom meant that you were obligated to lend money to the king if they needed it,
0:02:17.680,0:02:20.260
and this led to Kings taking advantage of banks.
0:02:20.260,0:02:25.220
Since they had near absolute authority, they could and did simply refuse to pay the loan back.
0:02:25.220,0:02:28.880
In fact, Kings were often pressured by their own merchants and Lords to do so,
0:02:28.880,0:02:33.780
since this would then force a bank to default and close,
meaning that it couldn't collect payments from anyone else.
0:02:33.780,0:02:37.680
And so, that's an extremely simplified way of how medieval banking worked.
0:02:37.680,0:02:42.500
Despite the lack of modern technology or the ability to charge interest, banks were extremely profitable.
0:02:42.500,0:02:48.360
However, it was an extremely risky business too and families were often taken down by Kings as quickly as they rose up.
0:02:48.360,0:02:50.880
I hope you enjoyed this episode
and thank you for watching.
0:02:50.880,0:02:52.400
With a special thanks to my patrons:
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James Bissonette
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The Pastry Section
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Marvin Cassow
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AaronTheWhite
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James Castañeda
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Danny Maloney
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Jordon Long-Lay
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Markus Arzner
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Gustav Swan
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Jerry Lambdin
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John Bailey
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Spinning 3 plates
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Rashid Ali
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Calling Castleman
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David Silverman
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Izzy?
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Coppertone
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Maggie Paxkowski
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Winston Caiuwood
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Lexy Schwinn
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Spencer Lightfoot
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Robert Wetzel
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Fortunate Calf
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Anthony Beckett
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and:
Skye Chappell
We always talk about James Bizonette, but what about my dude Kenny Money Maker; his name fits PERFECTLY with this episode
Oof, another James meme...at least spell his name right
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.
I like that you used Russia in the intro, because that's no longer the case.
I can’t believe how fundamental the profit model is and has remained.
Walks into Russian bank, deposits money, flies halfway around the world, withdrawals cash... "Not in 2022, you don't!"
Fun fact: Kelly Moneymaker is a singer, she has her own TH-cam channel and has performed on Jay Leno as part of a group! Well, those were three fun facts!
"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.
i could literally hear a ten minute long video of you saying Renaissance and love it
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...
“A tiny bit harder”
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?
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.
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.
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
I love your channel keep up the great stuff
Russian Bank in the beginning -- retrieve money -- well that hasn't aged well...
I was going to comment this but u are faster 🤣
Loans to kings were sometimes accompanied by concessions. The King would not pay back the loan but the bank would make money on the concession
Please do a part 2! When did the church allow banks to charge interest?
I think it's more a case of banks starting to not care what the church thought.
0:01 this guy knew what was up a year in advance
Merchant: Sorry, squire. We don’t take cash. It’s medieval times, remember?
Shopper: Ok, then. I’ll pay by check.
Pull out chisel and proceeds to engrave details into side of mountain.
*hears "Medici"*
*Assassin's Creed 2 Ezio's Family plays*
James Bissonnette: Now this is my kind of thing
I have always imagined a medieval king accidentally time traveling to modern days and then, not knowing what to do he would walk into a supermarket or any grocery store and be amazed
watching this in early march 2022 it’s funny that the first image shown was a russian bank, given current circumstances…
Caught this on my homepage. Title and thumbnail grabbed me. I never knew that this was a question I wanted an answer too.
I am here before James Bizzonette
You can"t be, he is James Bizzonette O.O
1:30 Holy shit the duchy of Burgundy was bonkers huge! Look at that!
Shorter video script: *They didn’t work*
Much love, your friends at Rev Media!!
These short videos really make AP World a bit more interesting
I was banking on a video about this topic! Nice job!
Even before the late middle ages, during the Crusades the Knights Templar became the first truly International bankers, pilgrims could deposit money with Templar houses in various European countries and receive a certificate of deposit that could be exchanged for cash as and when needed.The actual financial details were always in the Templar's own sophisticated code to ensure security.
Templars: You owe us money, your majesty.
Phillip IV: help! I’m being harassed by Usury heretics!
Pope: hold up! These are my men, and I get a say in how they’re treated!
Phillip IV: nevermind, I’ll just burned them all at the stake!
Did he really do that and what was the outcome?
@@attiepollard7847 Yes, he did with a positive outcome. He even forced the Pope to leave Rome and set himself up in France for 70 years.
You pronounced "Medici" correctly, that alone deserved an upvote.
Good luck depositing any money in a Russian bank today and getting it back somewhere else
Great video as always 👍
Banks making money through late fees. Good thing that’s a thing of the past.
Till the iron bank of Bravo's that.
I needed this since one of the characters in the fantasy medieval book I’m writing literally created the first bank
Link to book?
Monte de pasci?
I have an idea for the next video: how did medieval schools work?
I don't think there were any formal schools, for the most part. A child would usually either take up his father's trade, or find someone willing to train him to become their apprentice. But most people were serfs, farmers who took care of their lord's fields in exchange for protection in the event of war. The nobility had private tutors. Illiteracy was widespread, and few people had the time or the means to leave the social class they were born into.
I woke up this morning not knowing that in the evening i'd watch a video from some random guy on the internet explaining with an animation how medieval banks work. I'm happy i woke up this morning