What is a banking house?

Banking houses are institutions that handle currency transactions. This includes lending money, making investments, transferring funds among banks, individuals or businesses (remittance), issuing bills of exchange etc., especially during medieval Europe.

Why were banking houses important?

Banking Houses were important due to the fact that it was basically the first form of modern banking to exist, and existed due to the fact that money economies and paper money became much more dominant than any other financial system.

Why did European banks develop during the Middle Ages?

These European banks developed during the Middle Ages to aid trade. Along with innovations such as bills of exchange, or bank drafts, and credit, the rise of banking houses supported the development of interregional trade in luxury goods. A Muslim-ruled region in what is now Spain, established by the Berbers in the eighth century A.D.