Final answer:
Banking in Italian cities like Florence developed during the 13th century, with Florence becoming a significant commercial and financial center due to its thriving textile industry and influential merchant class.
Step-by-step explanation:
Banking developed significantly in Italian cities like Florence during the 13th century, specifically around the period known as the High Middle Ages. The city of Florence experienced a surge in economic growth during this time and became a hub for commerce, which was largely driven by the textile industry. Notably, the merchant class rose to prominence, further stimulating the development of financial systems and practices. Florence's success in trade and commerce led to advancements in various economic infrastructures, including double-entry bookkeeping, joint stock companies, an international banking system, a systematized foreign exchange market, insurance, and government debt, establishing a solid foundation for modern banking.