Ethan Riley
Banking as an activity is thought to have begun as early as the latter part of the 4th millennium BCE. During the time of Jesus, there was a great need for money changers and money changing, especially for foreign Jews who were forbidden by custom to put any but Jewish coins into the temple treasury. In the ancient world, banks were inside religious temples, and state-sponsored coinage was protected by divine spirits or gods, giving people a sense of security to deposit their money. In Christ's parable, the bank is taken by some to mean the synagogue, while others interpret it as the church. Bankers, often called usurers, were generally wealthy people who lent money for mortgages, purchases, and emergencies, charging high-interest rates. Jesus makes several references to banking in the Bible, including in Luke 19:23, which implies banks existed in Palestine during his lifetime.
| Characteristics | Values |
|---|---|
| Banking in Jesus' time | Banks existed in Jesus' time, though they were different from modern banks. They were often located in temples and run by money-changers who exchanged foreign currency and took deposits. |
| References in the Bible | Jesus made references to banking in the Bible, such as in Matthew 25:27 and Luke 19:23, indicating his recognition of lending and interest practices. |
| Money-changing | Money-changing was a common practice due to the variety of coins in circulation. Money-changers would exchange foreign currency into the local legal tender. |
| Interest rates | Interest rates were generally high, ranging from 12% to 20%. In times of high inflation, rates could reach up to 48%. |
| Bankers | Bankers were often wealthy individuals who lent money for various purposes, including mortgages, purchases, and emergencies. They also facilitated foreign exchanges and investments. |
| Banking establishments | Complex banking establishments existed in wealthy merchant centers of the Roman world. |
| Banking history | Banking as an activity is thought to have begun as early as the latter part of the 4th millennium BCE. |
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What You'll Learn
Money-changing tables in temples
During the time of Jesus, there was a great need for money changers and money changing, especially for foreign Jews who were forbidden by custom from placing anything but Jewish coins into the temple treasury. Money changers set up tables in the outer court of the temple for this purpose.
In the period of the Second Temple, large numbers of Jews travelled to Palestine and Jerusalem, bringing with them large sums of money in foreign currencies. These foreign coins had to be changed into local currency, and so the money changers played an important role in facilitating this exchange.
The money changers in the temple are mentioned in the New Testament in relation to Jesus expelling them from the temple in Jerusalem. This narrative appears in all four canonical gospels of the Christian New Testament and is referred to as the "Cleansing of the Temple". Jesus is described as overturning the tables of the money changers and accusing them of turning the temple into "a den of thieves" or "a market" through their commercial activities.
There are several interpretations of why Jesus took issue with the money changers. One common interpretation is that they were routinely cheating people and charging excessive prices, especially to the poor. Another interpretation is that Jesus was reacting to the practice of money changers extracting unlawful interest, which would have hurt the poor the most.
It is worth noting that banking and money-changing were common in the Hellenistic world during this time, and bankers often facilitated loans and investments.
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Lending money on interest
Banking systems were common throughout the Hellenistic world during Jesus' time. Bankers, often referred to as usurers, were generally wealthy individuals who lent money for mortgages, purchases, and emergencies. Interest rates were high, typically ranging from 12% to 20%. In times of high inflation, interest rates in Rome and Athens soared as high as 48%.
The Mosaic Law, as outlined in Exodus 22:25, Leviticus 25:35-37, and Deuteronomy 23:19, prohibited Israelites from charging interest to their fellow Israelites:
> "If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest." (Exodus 22:25)
> "You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest." (Deuteronomy 23:19)
However, lending money with interest to foreigners was permitted, as indicated in Deuteronomy 23:20:
> "To a foreigner, you may charge interest, but to your brother, you shall not charge interest, that the Lord your God may bless you in all that you undertake in the land that you are entering to take possession of it."
This distinction between "brother" and "foreigner" has been interpreted in different ways. Some scholars suggest that it refers to a contrast between the poor "brother" and the "foreigner" as a foreign trader or merchant. Mark Biddle, for instance, explains that the permission to charge interest to foreigners can be understood as a distinction between lending to the needy within one's community and credit as a component of commercial transactions.
In the New Testament, Jesus addresses the topic of lending and interest in several passages. In Matthew 25:27, Jesus says:
> "You ought to have invested my money with the bankers, and at my coming, I should have received what was my own with interest."
Similarly, in Luke 19:23, the phrase "to give silver to the table" implies putting money in the bank to earn interest. These references suggest that Jesus acknowledged the custom and propriety of lending money and receiving interest.
Jesus also instructed his followers to lend without expecting anything in return, even to their enemies in their time of need:
> "Love your enemies and lend to them without expecting to get anything back." (Matthew 5:42)
In conclusion, while the Old Testament prohibited Israelites from charging interest to their fellow Israelites, the New Testament seems to indicate a recognition of the practice of lending money with interest. Jesus' teachings emphasize both the importance of wise financial stewardship and generous lending without expecting repayment.
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Bankers as wealthy moneylenders
Bankers, often called usurers, were generally wealthy people who lent money to others for mortgages, purchases, and emergencies. They were prevalent in Palestine during Jesus' time. Banking systems were common throughout the Hellenistic world. Bankers often entered the business through moneychanging, which was necessary in any city that used coins from other countries.
In the period of the Second Temple, vast numbers of Jews travelled to Palestine and Jerusalem, bringing with them large sums of money in foreign currencies. This led to a great need for money changers, who would exchange foreign coins into local currency and vice versa. The shulḥani, or exchange banker, played a crucial role in this process, charging a small fee called a kolbon for their services. They also received deposits for investment and paid interest, although this was contrary to Jewish law, which forbade Israelites from charging each other interest.
Jesus frequently referred to bankers and money changers in his teachings. In the famous narrative of the Cleansing of the Temple, Jesus drove the money changers out of the Temple in Jerusalem, accusing them of turning it into "a den of thieves" or "a market" through their commercial activities. He overturned their tables and expressed his anger at their unlawful extraction of interest, which hurt the poor.
In his parables, Jesus also acknowledged the custom of lending money on interest, as seen in Matthew 25:27, where he states, "Thou oughtest to have put my money to the bankers." Bankers during this time invested their profits in loans and investments, charging high interest rates that could reach up to forty-eight percent in times of high inflation in Rome and Athens.
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Banking in Roman society
Banking in ancient Rome was quite different from what we know today. The earliest banks in ancient Rome were located in temples, similar to the Etruscan civilization. Banks were established in Rome, modelled on their Greek counterparts, and introduced formalized financial intermediation. Livy, a writer, first acknowledged the rise of formal Roman banks in 310 BC.
Roman bankers belonged to the plebeian or freedmen classes rather than the aristocracy, and they sometimes became very wealthy. They organized themselves into groups of two or three members, and many of their children achieved equestrian rank.
There were a variety of officials tasked with banking, including argentarii, mensarii, coactores, and nummulari. The argentarii were money changers, the mensarii helped people through economic hardships, the coactores were hired to collect money and give it to their employer, and the nummulari minted and tested currency. They offered credit systems and loans, and charged interest on them.
Roman bankers provided a wide variety of services. They served as cashiers and money changers, sold goods at auctions, and determined the material and quality of currency or opened money bases. They also maintained records, exchanged currency, and made payments on behalf of their clients.
The development of Roman banks was limited by the Roman preference for cash transactions. During the reign of the Roman emperor Gallienus (260–268 CE), there was a temporary breakdown of the Roman banking system after the banks rejected the flakes of copper produced by his mints. With the ascent of Christianity, banking became subject to additional restrictions, as the charging of interest was seen as immoral.
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Jesus's attack on the temple-banking system
Banking systems were common throughout the Hellenistic world during the time of Jesus. In the ancient world, banks were inside religious temples. State-sponsored coinage was protected by divine spirits or gods inside the temples, giving people a sense of security to deposit their money. In Palestine, banks were prominent among the people, and Jesus made frequent references to the subject. For example, in Matthew 25:27, he said, "You ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest".
In the time of Jesus, there was a great need for money changers and money changing, especially for foreign Jews who were forbidden by custom to put any but Jewish coins into the temple treasury. Money changers set up tables in the outer court of the temple to convert the many currencies in use into the accepted currency for paying the temple taxes.
Jesus attacked the money changers in the temple, flipping over their tables and chasing them out. This was an attack on the temple-banking system, which was managed by the Sanhedrin (the high council of Israel) and the "Roman procurator". Both became very wealthy from managing the banks and collecting tribute for themselves. Jesus's attack on the banking system was, therefore, an attack on the Sanhedrin's personal finances. This would explain the accusations against Jesus for "blasphemy" from the Sanhedrin, as he had "blasphemed" against their banking scam.
Some sources suggest that Jesus was not concerned with the fiscal framework of the merchants in the temple, but rather that they were inhibiting the Gentiles from entering into worship. The merchants were selling sacrifices to make the lives of the worshippers more convenient on Passover, and Jesus disrupted them by overturning tables and driving animals away. The sellers were taking up the only area of the temple where Gentiles could worship. Jesus also put an embargo on people carrying any merchandise through the temple, a sanction that would have disrupted all commerce.
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Frequently asked questions
Yes, banking existed in the time and region of Jesus' life.
In Jesus' time, banks were often located inside religious temples. They were operated by money changers, who would convert foreign currency into the local legal tender. These money changers also gave out loans and accepted deposits.
Interest rates were very high, generally between 12 and 20%. During times of high inflation, interest rates in Rome and Athens could reach as high as 48%.
Yes, Jesus interacted with the banking system of his time. He made references to banking in his parables and is said to have attacked the temple-banking system by flipping over the tables of money changers.
Jesus' actions against the temple-banking system were seen as a threat to the Sanhedrin, the high council of Israel, who managed the temple banks and profited from them. His actions and teachings challenged the existing economic and religious power structures of his time.
