But their influence was not limited to the battlefield. As the order grew, so did its economic power. The Templars developed an early form of international banking, enabling pilgrims to deposit money in Europe and withdraw it in the Holy Land. They owned vast tracts of land, castles, farms, and even entire villages across Europe.
They operated effectively as a state within a state—reporting directly to the Pope, exempt from taxes, and independent of local kings and bishops. By the late 13th century, the Templars were among the wealthiest and most powerful organizations in Europe.
Challenges and Decline: The Fall of the Crusader States
The turning point came with the decline of the Crusader states. In 1291, the last Christian stronghold in the Holy Land—Acre—fell to Muslim forces, effectively ending the Christian presence in the region. With no Holy Land to defend, the Templars lost their primary military purpose.
They retreated to Cyprus, but their continued wealth and independence began to draw suspicion. As their original mission faded, European rulers and clergy questioned the necessity of the order.
The Knights Hospitaller, another military order, had taken on a more prominent role. Meanwhile, the Templars’ prestige was in decline, and their wealth became a tempting target shutdown123