Economic Notes

Cover image for Vol. 44 Issue 1

Edited By: Alberto Dalmazzo, Giorgio Di Giorgio, and Giovanni Ferri

Online ISSN: 1468-0300

Society Information

Banca Monte dei Paschi di Siena

Banca Monte dei Paschi di Siena is the Parent Company of the Gruppo Montepaschi, the third largest banking group in Italy, with €219bn of assets (as of September 2009). The Gruppo Montepaschi has about 3,100 branches, employs 32,500 staff, and services more than 6 million customers. In addition, the Bank holds an absolute record, in that it is the oldest credit institution in the world, having been established in 1472 by the Republic of Siena. The activity of the initial ‘Monte Pio’ developed rapidly, and the original pawn business evolved to full banking from the 16th Century. Modern banking business started in 1624, as a result of the new Bank’s Articles of Association. Grand Duke Ferdinand II of Tuscany guaranteed, in the name of the State of Tuscany, the deposits placed with Monte against the income as collateral derived from the lease of the public pastures of Maremma (the so-called ‘Paschi’ which is part of the Bank’s name). Later on, the Bank expanded its activity beyond the borders of the traditional area of Tuscany, and at the time of the unification of Italy, the Bank was regarded as one of the soundest domestic banking institutions. In 1936 Monte dei Paschi di Siena was transformed into a public law credit institution, and in 1995 Banca Monte dei Paschi di Siena was converted into a joint-stock company. The Gruppo Montepaschi is active all over Italy and in the major international financial centers, with operations ranging from traditional banking activity to asset management and private banking (mutual funds, wealth management, pension funds, and life insurance policies), from investment banking to innovative business financing (project finance, merchant banking, and financial counseling), with a special vocation for “family” accounts and small and medium businesses. Banca Monte dei Paschi di Siena shares have been added to the following global sustainability indices: Dow Jones Sustainability Index World, Dow Jones Sustainability Stoxx, Ethibel – Pioneer Excellence Register, Aspi Eurozone Index, FTSE4Good Europe Index and FTSE4Good Global Index.

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