WORLD HISTORY

Detailed explanation-1: -The Medici Bank (Italian: Banco dei Medici [ˈbaŋko dei ˈmɛːditʃi]) was a financial institution created by the Medici family in Italy during the 15th century (1397–1494). It was the largest and most respected bank in Europe during its prime.

Detailed explanation-2: -He moved the headquarters of his bank to Florence in 1397, the official founding date for the Medici Bank. At the time, Rome was a source of funds, but Florence offered more investment opportunities. The Medici set up a system of branch banks, any one of which could be declared independent by rearranging accounts.

Detailed explanation-3: -But it wasn’t until the late 14th and 15th century that the family truly came to power with the creation of the Bank of Medici. Giovanni de’ Medici opened up one of the first family banks in 1397 in Florence, the city which would become and remain a central hub for the family for the next four hundred years.

Detailed explanation-4: -For example, the Medici fortune was made by using foreign exchange trade and arbitrage. The way it worked is that the Medici’s would collect money, or tax if you prefer to think of it that way, being paid to the Holy Roman Empire under the new Catholic regime of Rome.