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The roots of Monte dei Paschi di Siena lie in the spread, during the second half of the fifteenth century, of institutions called Monti di Piet\u00e0, whose purpose was to combat the practice of usury in an age (the early Renaissance) when the differences in income and standard of living between the social classes were growing more and more dramatic. The Franciscan Order in particular was especially active in promoting this type of initiative, which they conceived as a purely charitable aim. This is the context in which Siena\u2019s Monte di Piet\u00e0 was founded in 1472 by the Magistrates of the Republic of Siena, independently of any direct or indirect action on the part of the Franciscans.While the stated purpose of the institution was the same as that of the other Monti, the more strictly public and secular nature of Siena\u2019s Monte (established by the Magistrates themselves), together with the banking vocation that was still very much alive in the city, made it significantly different from the others, which were set up more as charitable institutions than banks. This was a fundamental aspect in the development of the Monte in the years \u2013 and centuries \u2013 to come.<\/p>\n
To meet the pressing needs of the city\u2019s economy, the Bal\u00eca di Siena (the principal body of local government) deliberated the establishment of \u201canother Monte\u201d to complement the existing one and perform the functions of a proper bank. It was indispensable for the Sienese economic system to have an agency that could operate on a broader scale with more capital, in order to infuse new energy into the various sectors of the economy \u2013 artisan work, agriculture, and commerce \u2013 that were in a state of persistent stagnation at the time. The deterioration of the Sienese economy finally forced the Grand Duke of Tuscany Ferdinand II to accept the Bal\u00eca\u2019s proposal. The new institution called Monte dei Paschi di Siena was created by a vote of the Magistrates and people of Siena, with Grand-Ducal rescript, on 30 December 1622 and subsequently established as a foundation on 2 November 1624.<\/p>\n<\/div>\n<\/div>\n
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\u2019s 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.<\/p>\n
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 Piet\u00e0 and Monte dei Paschi, which until then had enjoyed a certain amount of autonomy, even if it was mainly formal.<\/p>\n
The rapid growth of Monte dei Paschi\u2019s 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.<\/p>\n
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.<\/p>\n
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).<\/p>\n
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.<\/p>\n<\/div>\n<\/div>\n
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The roots of Monte dei Paschi di Siena lie in the spread, during the second half of the fifteenth century, of institutions called Monti di Piet\u00e0, whose purpose was to combat the practice of usury in an age (the early Renaissance) when the differences in income and standard of living between the social classes were […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":54094,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"dipi_cpt_category":[],"class_list":["post-54116","page","type-page","status-publish","format-standard","hentry"],"acf":[],"yoast_head":"\n