Know More About The History Of Banking

05 Dec 2015 in Finance

In 18th century there are people who have lots of gold but it has its own disadvantages. The biggest one is that there were no place for people to hide this gold and so it easily gets stolen. So to make it safe  temple was considered as the best place to hide gold. The reason behind this is people feels that god will punish them if they steal the golden ornaments that the statue of god is wearing and hence they always stay away.

Banking has been started with a proper system by Greeks and Romanians. These banks pun on the base for todays banks. They have started depositing money and giving loans. They also change currency and test the purity of coins.

They even use to manage a book where every transaction is mentioned. At this time people who have lots of money use to save in banks. These banks also provided the money lending services. In this service one can deposit money in one bank and then he can withdraw money from other bank in the same city or in other city. The benefit of this system is that people don’t have to carry huge number of coins from one place to another.

As we all know Rome is known for its brilliant administration, and so they adopted this service and started as a regular service. They appointed notaries in order to manage the transactions. Soon these banks started getting richer and then they start giving money to the governments which further lead to grow the economy of that country.

In 13th century bankers of Italy were known as Lombards. They started managing double entry book and this has made this whole system more secure. In 14th century, two families which are known as Bardi and Peruzzi grew rich and wealthy. The reason behind this is that they have banking business. They started collecting transfer of money orders and then they started bill of exchange, using this system the debtor can pay money in one city and creditor can withdraw that in another city.

So these were the times when people launched the base of banking. And today it has grown to the huge level that they are maintaining the economics of the world. Today they are so advances that the customers don’t have to go anywhere in order to transfer funds or clear any bill.