The seventeenth and eighteenth centuries were marked by alternating periods of moderate prosperity and phases of stagnation. Needless to say, the fortunes of Monte dei Paschi reflected these ups and downs. In the first centuries of its history, therefore, the bank’s operations were significantly conditioned by an unfavorable economic environment, and it often had to adapt its strategies, within the limits allowed by its regulations, to the vicissitudes of the local economy.
In 1783, the Grand Duke introduced a substantial change in the organization of the institution, merging into one agency the two administrations of the Monte di Pietà and Monte dei Paschi, which until then had enjoyed a certain amount of autonomy, even if it was mainly formal.
The rapid growth of Monte dei Paschi’s banking activities was soon accompanied, from the mid-1800s, by a broad territorial expansion. By the time of Italian unification, it was one of the most solid banks in the entire country.
In 1936, in recognition of its public juridical nature, Monte dei Paschi di Siena was officially declared a public-law credit institution. A new charter was drawn up; albeit with later amendments, it remained in effect until 1995, when the institution underwent a major transformation.
A decree by the Minister of the Treasury dated 8 August 1995 created two separate entities: the Banca del Monte dei Paschi di Siena S.p.A. (a corporation) and the Monte dei Paschi di Siena Istituto di diritto pubblico (a public-law company).
Finally, on 14 March 2001, the Deputazione Generale (Board of Directors) of the Foundation ratified a new charter changing its juridical nature from public to private; this was approved by the Ministry of the Treasury on 8 May 2001.