Lodovico Capponi: A Florentine Banker and a Lending Transaction in 16th Century Florence

This paper examines how loans transpired in early 16th century Italy, taking a look at a specific transaction involving Lodovico Capponi of Florence and the Vatican in Rome. The study breaks down into three separate themes: lenders, collateral, and interest. The paper takes a look at what sorts of people were lending money to whom, the importance of collateral and the kind of objects that were deemed acceptable for it, and the delicate application and retrieval of usurious interest on a loan. This is followed by a debate concerning the economy and the movement of money during this era. Although at this time there was not yet a regimented banking system as we understand it today, it is clear that there were understood rules and regulations that were followed between two parties joined in a loan