Barcelona established the first public bank to facilitate trade without charging prohibited interest
Barcelona's Taula de Canvi, founded in 1401, became Europe's first public bank by operating as a non-profit institution to circumvent religious prohibitions against charging interest.
The Taula de Canvi, or 'Table of Exchange,' was established by the city of Barcelona to provide a stable financial infrastructure for the Mediterranean wool and spice trades. Unlike private banks of the era, the Taula was backed by municipal taxes and operated primarily to facilitate the clearing of bills of exchange. By not charging traditional interest, the bank successfully navigated the Catholic Church's strict usury laws while providing essential liquidity to merchants.
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