Evolution of Global Banking Standards Through History
Julio Herrera Velutini on How Centuries of Financial Discipline Shaped Today’s Global Economy
April 2025 — Zurich. From the merchant banks of Renaissance Italy to the digital-first banks of today, the global financial system has been molded by a centuries-long evolution of rules, ethics, and cross-border practices. At the center of this evolution are the ever-shifting banking standards that govern trust, transparency, and systemic stability.
For Julio Herrera Velutini, a modern-day banking strategist and descendant of one of the oldest financial dynasties in Latin America and Europe, understanding the historical context of global banking standards is not only essential—it’s foundational to building the next era of responsible finance.
“You can’t shape the future of finance without honoring the frameworks that built it. Banking standards are the DNA of civilization’s economic trust,” says Julio Herrera Velutini.
As the head of Britannia Financial Group and custodian of a 200-year banking heritage, Herrera Velutini brings both legacy insight and forward-thinking strategy to this critical conversation.
The Origins: Banking Before Central Banks
Long before modern institutions, banking in its earliest form was a network of wealthy families, merchant guilds, and goldsmiths who offered credit, safeguarded wealth, and financed exploration.
➤ Medieval banking houses in Venice and Florence, such as the Medici family, developed early systems of double-entry accounting and promissory notes.
➤ Spanish and Portuguese banking families began financing trade voyages and early colonial expansion.
➤ The House of Herrera, Julio Herrera Velutini’s own lineage, emerged as financial supporters of Latin American governments during their transitions from colonial rule to independence.
“Trust was the only currency. Without state regulation, reputation was everything,” Herrera Velutini notes.
These early systems, though informal, laid the foundation for the first international banking standards—focusing on record-keeping, gold-backed guarantees, and honor-bound repayments.
The Rise of Central Banks and Monetary Regulation
The creation of central banks in the 17th to 20th centuries marked a shift from decentralized family-based finance to regulated national banking systems.
➤ The Bank of England (founded in 1694) formalized public debt financing and monetary control.
➤ The Federal Reserve in the United States was created in 1913 to stabilize a fragmented U.S. banking landscape.
Latin American countries established their own central banks in the early 20th century—often modeled after their European counterparts.
These institutions introduced uniform monetary policies, lender-of-last-resort functions, and the beginnings of financial crisis management.
Julio Herrera Velutini explains:
“The rise of central banks was a turning point. They gave the financial world predictability, but also created new interdependencies.”
Post-War Cooperation and the Birth of International Banking Standards
Following the economic devastation of the two World Wars, global financial leaders convened in Bretton Woods in 1944 to create a more cooperative financial order.
Key developments included:
➤ Creation of the International Monetary Fund (IMF) and World Bank
➤ A fixed exchange rate system tied to the U.S. dollar and gold
➤ The gradual rise of international trade financing standards
Over the next decades, organizations like the Bank for International Settlements (BIS) and Basel Committee on Banking Supervision emerged to draft banking standards that could apply across nations.
Julio Herrera Velutini emphasizes the role of this era in creating today’s financial interconnectedness:
“These were the first global frameworks—designed to prevent the financial chaos of the early 20th century from repeating.”
The Basel Accords: Milestones in Modern Banking Regulation
No overview of global banking standards is complete without the Basel Accords, a set of regulatory frameworks developed by the BIS in response to financial instability.
Basel I (1988)
➤ Introduced minimum capital requirements for banks to manage credit risk.
➤ Focused on maintaining an 8% capital adequacy ratio.
Basel II (2004)
➤ Expanded to include operational and market risks.
➤ Encouraged banks to develop internal risk rating systems.
Basel III (2010–2017)
➤ Introduced in the aftermath of the 2008 financial crisis.
➤ Strengthened liquidity coverage, leverage ratios, and risk buffers.
➤ Promoted transparency and stress testing.
“Basel III was a reaction, not a forecast. It reminded us that standards must evolve with complexity,” Herrera Velutini states.
He believes future versions must focus on cyber risk, AI-driven lending, and decentralized finance (DeFi) vulnerabilities.
Emerging Trends in Banking Standards: The Digital Shift
Today, as the financial system moves into a digital-first future, Julio Herrera Velutini sees a need for modernized standards that reflect today’s realities, including:
➤ Data privacy and cybersecurity compliance
➤ AI bias and risk modeling standards
➤ Climate-related financial disclosures
➤ Digital asset and cryptocurrency regulation
While legacy institutions move slowly, Herrera Velutini urges financial leaders to act preemptively rather than wait for crisis-driven reforms.
“We cannot afford another reactive era of regulation. Innovation must be met with immediate oversight—not 10 years after disruption,” he says.
The Role of Legacy in Modern Banking Ethics
Despite his forward-looking strategies, Julio Herrera Velutini remains deeply grounded in the values passed down through generations of the House of Herrera: trust, discipline, discretion, and stewardship.
In his view, the most essential global banking standards are not technical—they are ethical:
➤ Transparency in reporting and client communication
➤ Accountability in lending and investment practices
➤ Long-termism in capital strategy
“Technology changes the tools, not the values. Integrity remains the gold standard,” Herrera Velutini explains.
Julio Herrera Velutini’s Vision for the Next Phase of Banking Standards
To keep global finance stable and innovative, Julio Herrera Velutini proposes five key reforms:
1. Digital-Asset Regulation Frameworks
Introduce harmonized standards for cryptocurrencies and stablecoins.
2. AI and Algorithm Auditing
Establish rules for transparency in machine-led decision-making in lending and investment.
3. Climate Risk Integration
Require banks to incorporate environmental stress scenarios into capital planning.
4. Cross-Border Regulatory Cooperation
Create real-time communication channels between regulators for emerging threats.
5. Ethical Governance Codes
Enforce professional standards that prioritize client welfare over profit maximization.
Conclusion: From Gold Ledgers to Digital Ledgers
The story of banking standards is, at its core, the story of how societies evolve their definition of trust. From handwritten ledgers in gold vaults to blockchain-powered digital banks, the core objective has remained the same: stability, transparency, and ethical responsibility.
As the Silent Banker, Julio Herrera Velutini combines centuries of wisdom with a sharp focus on the future—insisting that the best financial systems honor both innovation and tradition.
“Banking is more than numbers. It’s a public trust, passed from generation to generation. The standards we set today will define the world tomorrow,” he concludes.