NAPLES, BANK OF, is an autonomous, public utility, non profit earning foundation, incorporated under a charter granted in 1866. Its origins date back to 1539 when two public-spirited Neapolitans, Aurelio Paparo and Leonardo di Palma, founded in their city a first bank with a capital of 4,000 ducats for granting loans on pledge and without or at a very low rate of interest to free the poorer classes from the evils of usury.
The institution rapidly developed, and survived all the vicis situdes of the kingdom of Naples. After the annexation of Naples to the kingdom of Italy the Banco di Napoli remained a bank of issue. Regional interests and the still strong traditions of regional independence maintained this situation until May 6, 1926, when the Banca dItalia became the sole bank of issue.
The Banco di Napoli is a foundation organized as a trust, ad ministered by a Board whose members are nominated by the Government, by the province and municipality of Naples, and by the organs representing the commercial activities of the province. Its officers have the status of public officials. Its
capital and reserves stood in Dec. 1927 at 1,251.7 million lire. It acts as a savings bank, an agricultural credit bank, and a pledge bank for the southern provinces, and discharges the services con nected with emigrant remittances from abroad, for which purpose it has agencies in New York and Chicago. Part of its profits are assigned to purposes of public utility and charity, the bulk going to increase its reserves.
By a process of amalgamation it has absorbed the agricultural credit institutes of the Southern provinces and is now the most powerful instrument for the progress of South Italian agriculture and one of the most effective agencies for economic development.
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