This bank was opened when even the Mughals had not come to India; Even today it does business worth billions

Banca Monte dei Paschi di Sienna: Banking originated from the need to secure trade and currency transactions. The first banks opened centuries ago in Europe, serving merchants and rulers who wanted to safeguard their wealth and access credit.

At that time, these institutions mainly served merchants, royal families, and the church. Over time, they began issuing banknotes, accepting deposits, and managing payment systems for foreign trade. Despite wars, economic recession and political turmoil, some of these institutions still exist today. But do you know which is the oldest bank in the world that is still running? If not, let us know its whole story in detail.

Which is the oldest bank in the world?

Banca Monte dei Paschi di Siena SpA, better known as BMPS, is an Italian bank. Its history is linked to the ‘Mount of Piety’ established in 1472 (554 years ago), and it was established in its present form in 1624 (402 years ago), i.e. it predates the Mughal period. It is the oldest bank in the world, and after the acquisition of Mediobanca in 2025, it became the third largest bank in Italy.

Who started it?

Banca Monte dei Paschi di Siena SPA was established by the General Council of the Republic of Siena. Initially, it was established to provide loans at fair and reasonable terms to the needy people against collateralized property.

When did it face crisis?

During the Eurozone crisis, MPS lost more than $2 billion in the first half of 2012, due to rising yields on Italian government debt and falling valuations. As a result, it had to raise new capital.

Later, in 2017, the Ministry of Economy and Finance became the largest shareholder of MPS, after injecting €8.3 billion of capital. Along with this, the bank started a major transformation process with the aim of promoting innovation, improving the use of resources and keeping customers at the center of its business.

Who has the stake and what is the valuation of the bank?

Italy’s Ministry of Economy and Finance (MEF): 11.731%
Grupo Francesco Gaetano Caltagirone: 9.963%
DELPHIN SARL: 9.866%
Banco BPM SpA: 8.996%
Other shareholders: 59.444%

Banca Monte dei Paschi di Sienna SpA is a listed company. Its current market capitalization is €28.44 billion. In Indian currency, €28.44 billion is equivalent to ₹3.15 lakh crore.

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