The Iron Bank of Braavos: Unveiling the Secrets of Debt Collection in Game of Thrones

Highlights

The Iron Bank of Braavos is a powerful financial institution in Westeros that lends money to the Crown and other clients in both Westeros and Essos.

The Iron Bank enforces stringent collection policies and demands repayment from borrowers, wielding the authority to finance the adversaries of those who default on their debts. The Lannisters heavily depend on the Iron Bank to finance both wars and weddings, yet this reliance exposes them to potential conflict with the institution. In the event that current rulers fail to honor their payments, other leaders can approach the Iron Bank for financial support.

Upon Ned Stark's arrival in King's Landing, the small council of King Robert immediately engaged in heated debates regarding the extent of the Crown's debt. In episode 3 of Game of Thrones season 1, titled "Lord Snow," it is revealed that Lord Tywin Lannister holds a debt of three million, contributing to a total debt of six million. Petyr Baelish, the Master of Coin, casually claims the ability to locate and spend the necessary funds at the king's discretion.

Although Petyr Baelish does not explicitly mention the Iron Bank of Braavos as the lender, it becomes clear that a formidable financial entity within Westeros or the Known World is responsible for such lending activities. Game of Thrones provides further insight into the realm's borrowing practices through Lord Tyrion Lannister, the astute son of Tywin.

The Iron Bank Will Have Its Due

Located in the Free City Braavos, the Iron Bank is renowned for its esteemed clientele from both Essos and Westeros. It holds a strong reputation as a financial institution, evidenced by its history of lending to the Crown. In Game of Thrones season 3, episode 3 "Walk of Punishment," Tyrion Lannister, the new Master of Coin for King Joffrey, makes an intriguing discovery about the bank's financial state. He realizes that Petyr Baelish, also known as Littlefinger, was not a miraculous money conjurer for the Crown, but rather adept at borrowing funds. Over the years, the tales of Littlefinger's magical ability to generate vast sums of gold for the Crown have been nothing but folklore.

Tyrion discovers that the realm is in dire financial straits, burdened with a staggering debt owed to his father. However, what truly instills fear in Tyrion is the formidable Iron Bank of Braavos:

We are indebted to them for tens of millions. Should we falter in repaying these loans, the bank will provide financial backing to our adversaries. In one manner or another, they invariably reclaim their precious gold.

The foreign financial institution possesses significant authority and inevitably collects what it is owed. Amidst the substantial costs associated with Joffrey and Margaery's wedding and the crown's expenses during wartime, Tywin and Lady Olenna Tyrell discuss the imminent covert menace imposed by the Iron Bank. During Season 4 of Game of Thrones, Lady Olenna reminds Tywin that she has financed fifty percent of the wedding and remarks:

The Iron Bank will ensure that it receives what is owed to it. They take great pleasure in reminding everyone, much like you Lannisters and your debts.

At that point in Game of Thrones, Tywin says he doesn't care much about the Iron Bank, but the truth is, he knows what's coming for the Crown.

The Lannisters And Stannis' Dealings With The Iron Bank

Aware of the consequences of crossing paths with the Iron Bank, Tywin imparts his wisdom to his daughter, Cersei. As the upcoming nuptials between Tommen and Margaery Tyrell approach, Tywin aims to keep the event as uncomplicated as possible. Recognizing the need for strategic alliances with affluent Houses, he now proposes a marriage between Cersei and the future Lord of Highgarden, Ser Loras Tyrell. The Lannisters have depleted their mines, relying on the continued support of the Iron Bank to finance both military campaigns and extravagant weddings. Highlighting the substantial debt owed to the bank, Tywin sternly emphasizes its unswerving nature.

And that is the essence of the Iron Bank - a revered institution that casts its influence over us all, unbeknownst to most. Evading, deceiving, or reasoning with them is futile. If you are indebted to them and wish to avoid ruin, repayment is essential."

In order to secure the prosperity of House Lannister, Tywin declares that Cersei must wed Loras. The sixth episode of Game of Thrones season 4, "The Laws of Gods and Men," commences in the Free City of Braavos, where Ser Davos, Stannis' advisor, meets with representatives from the Iron Bank. Led by Tycho Nestoris, these bankers possess a thorough understanding of the intricacies of Lannister rule and Stannis' unsuccessful endeavors. Tycho, having previously interacted with Tywin, places great significance on numerical figures. Initially declining the request for financial support, Tycho eventually acquiesces at Ser Davos' compelling argument, which highlights Stannis' integrity, accountability, and Tywin's advancing age.

He's an honest man, and he's your best chance to get back the money you've sunk into Westeros, which is a lot, I imagine.

How Does The Iron Bank Collect Its Debts?

In Game of Thrones season 5, episode 4 "Sons of the Harpy," we get a glimpse into the Iron Bank's pursuit of debt repayment. Following the assassination of Tywin Lannister, the bank's confidence in the ruling King begins to waver, prompting them to demand one-tenth of the outstanding debt. Although the Crown can only manage to pay half of this amount, Cersei dispatches Lord Mace Tyrell to Braavos as an envoy, tasked with negotiating more favorable terms with the Iron Bank. Mace describes the bank as "the world's best gamblers," highlighting their skill in investing and reaping rewards.

In the Game of Thrones season 7 episode titled "The Queen's Justice," a character named Tycho is sent by the Iron Bank to collect their debts. At this point in the story, many significant changes have occurred in Westeros, such as the deaths of Tommen and most of House Tyrell. The Lannisters, once a powerful family, now find themselves isolated, with Queen Cersei lacking successors and allies. Additionally, Daenerys Targaryen is preparing to arrive in Westeros. Tycho suggests that Cersei may have been involved in the destruction of the Sept of Baelor and demands repayment. Aware of Cersei's empty vaults and her enemies surrounding her, Tycho makes veiled threats. Cersei requests a fortnight and, following the successful conquest of Highgarden, uses the Tyrell gold to settle the Crown's debts with the Iron Bank.

Aside from pursuing debt collection, the Iron Bank also plays a role as a kingmaker. They provide financial support for endeavors that they believe will be successful. Essentially, if current rulers cannot fulfill their financial obligations, the Iron Bank may support potential kings or princes, with the expectation that these endeavors will repay the outstanding debts. With substantial wealth at their disposal, the Iron Bank has even been known to fund Stannis Baratheon, a rival of the Lannisters, in the Game of Thrones narrative.