Banking Development in Brief:
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| Origin and Development of The Bank |
It is difficult to determine the time of origin of the banking business. Along with the development of society, after people started living in groups, their needs increased. The need to protect the property that he had acquired started to be felt. As a result of which, the practice of allowing faithful people to keep liquid assets, gold, silver etc. valuable metals was started. Later, the faithful traders started doing that work. Along with the growth of economic transactions, the need for organized organizations was felt. The common people also started taking money from the big traders according to their needs. After receiving the amount, such merchants started writing it on paper, which has now evolved into a deposit voucher. While giving the loan, they started charging some amount which has now developed as interest.
Gold Smith, a gold trading community, also started coming to the market over time. Later they started winning the trust of the people. As a result, people started entrusting their property to them. Along with the growth of commercial business, people's need for capital started to increase. As a result, as the demand for loans increased in places where business transactions were increasing, banking institutions started to develop. Looking at the development of the banking business, the industrial development took place first in the USA and banking business was developed to meet its needs. In England, the development of banking business was first followed by industrial development. In ancient times, banking business was also started in Rome.
The beginning of the development of the modern banking system can be found in Genoa in 1148 with the establishment of the Casa de San Giorgio Bank and in 1157 with the establishment of the Bank of Venice. Similarly, Barcelona Bank was established in 1401, Bank of Geneva in 1407, Bank of Amsterdam in 1609. In the year 1619, the German Bank of Hamburg was established in Germany and in the year 1694, the Bank of England was established in England. Similarly, the Bank of United States was established in the USA in 1791, which was also given the right to print notes up to the amount equal to the capital. In this way, the modern banking system has been developed in the world.
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