Lombard banking

From the 13th century these were considered Italian merchants as bankers on the Lower Rhine. They played an increasingly important role both in lending and in the trading of exchange. In this they were superior to both greater skill in the money business and large capital owned by local merchants. In addition, they were promoted from the 14th century by the princes of the Lower Rhine region. In this century, they were able to penetrate into the financial markets of the Middle Rhine region. All Italians in the money business of German-speaking regions of the Holy Roman Empire were called regardless of their actual origin as Lombards.

Causes of Italian banking in the Rhine basin

Italian merchants had developed superior methods of finance in the 13th century, so the payment transfer over long distances by means of bills of exchange and accounting practices to manage payment transactions with a wide variety of coin types. As part of the long-distance trade for Champagnemessen these techniques had become indispensable. With the decline of Champagnemessen end of the 13th century the European North -South trade was settled increasingly along the Rhine.

In the Rhine region lacked local business people to know- how and Münzkapital to cope with this trade. In addition, the administrative structures in the Rhine territorial rule changed. Military and political tasks were increasingly regulated financial transfers. One speaks of a commercialization of the administration, and it also lacked the territorial lords of Münzkapital.

Thus, on the one hand there were a need for financial professionals and lenders in the Rhine region, and on the other hand due to the decline of Champagnemessen incentives for Italian long-distance trade merchants, to resettle.

Branches of the Lombards

The most successful branches of the Lombards were found in the Lower Rhine in Cologne and Aachen. Their owner came mainly from Asti and Chieri. However, the entire Lower Rhine region was covered with a network of branches.

The settlement, however, was always limited in time and paid for the protection of the country gentlemen with high fees. It was mostly voluntary in colonies, for practical reasons and sense of belonging as a special group. An assimilation did not take place. Marriage connections with locals were rare and usually motivated business.

In the money business at Middle Rhine Moselle and the Lombards were able to penetrate only in the late 14th century, as the local rulers preferred Jewish financiers. From 1420 Lombards were expelled gradually from the Rhine region.

Business, the Lombards

Lombards were active in both the transfer of funds, in the small and medium-sized credit business as well as in the allocation of large exposures to sovereigns.

In the latter, they acted usually as a consortium. This placed a large exposure to a country gentlemen and then got the privilege of customs and tax laws to manage this country gentlemen and so the loan plus interest independently collect again. The Lombards were involved as a part of the territorial tax authorities. Frequently acted small aristocratic officers of the territory as a mediator.

Lombard loans were mostly short-term and high yield.

Reasons for the expulsion of the Lombards

Beginning of the 15th century did local merchants and bankers increasingly to acquire modern methods of business and money to accumulate larger amounts of capital. In parallel, changes in lending to low-and middle Rhine. Short-term, high-interest loans, such as the Lombards they offered, lost to long -term, low-interest loans as of the annuity and the Erbrente important.

There was no need to continue to tolerate the Lombards.