Usury and Credit Practices in Italy in the Middle Ages

Accounting and Culture Review, 23 April 2018 - Special Issue: Banks and Financial Institutions in Historical Perspective, Forthcoming

37 Pages Posted: 10 May 2018

See all articles by Stefano Adamo

Stefano Adamo

University of Salento

David J. A. Alexander

University of Birmingham Business School

Roberta Fasiello

University of Salento Department of Economics, Management, Mathematics and Statistics

Date Written: January 31, 2017

Abstract

This paper presents a historical investigation of usury in the context of the development of credit activities. The definition of usury and the attitudes towards usury changed multiple times over the centuries. We focus on the 12th to the 14th centuries and the changes in the operating, economic and reporting practices resulting from changes in the economy - from subsistence farming to sophisticated international trading. We analyse the relationship between the Church’s usury prohibitions and the development of trading and credit. As a one-sentence summary of our conclusions, we can claim that during the 14th century usury was radically condemned only in theory, but despite this prohibition the Church was not able to contain the spread and the development of credit, and merchants made operations charging interest in the substance of the operations, whilst concealing the existence of interest in visible formal terms.

Keywords: Middle Ages, Usury, Credit Practices, Church, Lenders, Italy

Suggested Citation

Adamo, Stefano and Alexander, David J. A. and Fasiello, Roberta, Usury and Credit Practices in Italy in the Middle Ages (January 31, 2017). Accounting and Culture Review, 23 April 2018 - Special Issue: Banks and Financial Institutions in Historical Perspective, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3167871

Stefano Adamo

University of Salento ( email )

via per Monteroni - complesso Ecotekne
Lecce, Lecce 73100
Italy

David J. A. Alexander

University of Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom

Roberta Fasiello (Contact Author)

University of Salento Department of Economics, Management, Mathematics and Statistics ( email )

via per Monteroni - complesso Ecotekne
Lecce, Lecce 73100
Italy

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