Portrait of the Oldest Bank in the World, 551 Years Old

Dream - The banking industry is growing with the increasing number of banks around the world. Banking challenges are also increasing, varied, and dynamic. 

According to the OJK website, there are several structural banking challenges that still need to be faced, related to the scale of business and banking competitiveness.  Other challenges include the rapid development of digital economy and finance accompanied by changes in economic behavior of society.  

Recently, Silicon Valley Bank (SVB), the 16th largest bank in the United States, was declared collapsed by the Federal Deposit Insurance Corporation (as the regulatory body) on March 3, 2023.

Among many banks, do you know where the oldest bank in the world is? 

The oldest bank in the world that is still alive today is Banca Monte Dei Paschi di Siena 

This bank was founded in 1472 in the city of Tuscan Siena, which was a republic at that time. If calculated, it means that the bank has been operating for 551 years.

According to cobaltrecruitment.co.uk, this bank was established to offer loans to "the poor or unfortunate or needy", and expanded its operations nationwide after Italy united. 

Although it has managed to survive for years, this bank has faced increasing problems since the 2008 financial crisis, when it was forced to recapitalize. 

In 2013, the bank confirmed losses of up to 730 million euros. However, like many other banks, Banca Monte Dei Paschi  has been trying to raise capital to avoid closure.

Currently, Banca Monte dei Paschi di Siena is the fourth largest commercial and retail bank in Italy.