Paschi

Paschi, officially Banca Monte dei Paschi di Siena, commonly referred to as Paschi, is an Italian bank headquartered in Siena, Tuscany. It is widely regarded as one of the oldest banks in the world, with origins dating to 1472 when it was established as a Monte di Pietà to provide credit and social welfare. Over the centuries it grew into a major financial institution and a prominent regional lender in central Italy.

The bank has a long history in Italy, expanding its network and services to become one of the country's largest banks by assets. In the modern era, Paschi faced significant financial challenges linked to a legacy of non-performing loans and weak capital, culminating in a state-supported rescue process in the late 2010s. The Italian government intervened to stabilize the institution and gradually increased its ownership stake as part of a restructuring plan aimed at restoring financial strength and governance.

In the 2020s Paschi continued to operate primarily in Italy, emphasizing retail banking and small- and medium-sized enterprise lending, while maintaining regulatory oversight by Italian authorities and the European Central Bank as part of the European banking framework. The bank pursued a program of cost reduction, balance-sheet repair, and strategic review of its asset base and operations. Throughout this period Paschi sought to improve profitability and risk management, and to consider long-term ownership options, including the possibility of privatization or reduced state involvement, while preserving its historic role in Siena and broader Italian financial markets.