Banks During The Renaissance Era

In the same way, the Renaissance Era introduced the formation of banks, thus a new economic system, and the beginning of an urban movement. In the Medieval Ages some people used to exchange goods instead of using money to buy them. However as trade increased and city-states like Venice took place on the trade routes, people began to use money to buy their goods, which created a monetary economy. Exchangers arose because people needed to change from one currency to another. Craftsmen, merchants, and bankers became important. Craftsmen made the goods, merchants traded them, and bankers exchanged and loaned money, and provided funding for business. The banks, and bankers provided funding for many buildings, and some of them provided art, making
various city-states educational and cultural centers. Italian financiers arose and started to shift their operations to Germany, France, England, Spain, and others, this attracted local competitors, which caused the centers of trade to shift westward. Italy’s new economy influenced the urban movement in western Europe, and just like Italy, western Europe experimented “similar social changes, and a like stimulus to art and letters” (The Intellectual Renaissance in Italy). The Renaissance introduced a new economic system causing Feudalism to break down, the middle class contributed to the creation of a capitalist society based on trading and monetary profit. Therefore, the Renaissance provided more money and created an easier way to finance, it introduced banks, and the roots of capitalism to the Modern World, leaving Manorialism, and Feudalism in the Medieval Age.