#TodayinHistory in 1882, Monte de Piedad y Caja de Ahorros (Mount of Piety and Savings Bank), one of the 1st banks in #PH is opened. The bank was the 1st in #PH to offer financial loans to the poor w/ moderate interest. (THREAD)
Context: The bank of this nature began in Italy in 1462, initiated by Franciscans to provide safety net to the poor who wished to loan. The 1st Monte de Piedad in Spain was established in 1841. In 1880, Gov-Gen. Domingo Moriones y Murillo decreed its establishment in #PH.
At the time, w/ the end of the Galleon trade, the #PH economy had been diversifying. El Banco Español Filipino de Isabel II (now @TalktoBPI) was founded in 1851. Initial capital of Monte de Piedad was from Obras Pias (religious charitable foundations) via Casa de Misericordia.
With support from the Archbishop of Manila and the Spanish colonial government, the bank was established on 20 July 1882, and began operations on this day that same year. The implementation was attributed to the intervention & push of Franciscan friar, Felix Huerta.
The bank depended on funds donated by the wealthy to the Church. The principle applied was to benefit the borrower rather than to profit the lender. Hence, any amount that exceeded the initial debt unpaid would be given to the debtor or his descendants.
Photo credits:
- Postcard, Monte de Piedad in the early 20th century, at Santa Cruz, Manila, from Leo Cloma Flickr
- Monte de Piedad's building in ruins after the #BattleofManila1945, from Presidential Museum & Library
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