Scribd
Upload
59 views2 pages

Origins of the Banking System

A bank is a government-licensed financial institution primarily involved in borrowing and lending money, with various financial services offered over time. The history of banking dates back to ancient civilizations, evolving significantly through medieval Italy and into modern times with technological advancements. The 21st century has introduced tech banking, further transforming the industry into retail and corporate banking sectors.

Uploaded by

rohitdodmani192004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
59 views2 pages

Origins of the Banking System

A bank is a government-licensed financial institution primarily involved in borrowing and lending money, with various financial services offered over time. The history of banking dates back to ancient civilizations, evolving significantly through medieval Italy and into modern times with technological advancements. The 21st century has introduced tech banking, further transforming the industry into retail and corporate banking sectors.

Uploaded by

rohitdodmani192004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

INTRODUCTION

A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example
banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in
industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-
shareholding entity known as the zaibatsu. In France, banc assurance is prevalent, as most banks offer insurance services (and now real estate services) to their clients.

History of banking

The History of Banking begins with the first prototype banks of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began
around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples made loans and added two important innovations: they accepted
deposits and changed money. Archaeology from this period in ancient China and India, also shows evidence of money lending activity.

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi
families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established by
Giovanni Medici in 1397.

The development of banking spread from northern Italy through Europe and a number of important innovations took place in Amsterdam during the Dutch Republic in the 16th century, and in
London in the 17th century. During the 20th century, developments in

Telecommunications and computing caused major changes to banks operations and let banks dramatically increase in size and geographic spread. The Late-2000s financial crisis caused
many bank failures, including of some of the world's largest banks, and much debate about bank regulation.

The world of banking has assumed a new dimension at dawn of the 21st century with the advent of tech banking, thereby lending the industry a stamp of universality. In general, banking may
be classified as retail and corporate banking. Retail banking, which is designed

You might also like