A Glance at the History of Banking Systems - Part 2

There are other stories as to the history of banking systems. There are traces of banking systems in ancient temples of Egypt, Babylonia, and Greece where gold and silver were loaned at very high rates. Private banking was also found to have started as early as 600 BC by the Greeks, Romans, and Byzantines.

Forerunners of the banks we know today have been established for specific purposes like the Bank of Venice in 1171 and the Bank of England in 1694, which provided loans to the government. There was also the Bank of Amsterdam in 1609, which accepted deposits in the form of gold and silver. With the expansion of trade between nations, bank saw a rapid growth throughout the eighteenth century up to the nineteenth.

Origin of the word bank

Bank derived its name from the Italian word, which means desk or bench. This was a term used by the bankers during the Renaissance period to refer to the transactions they make over a desk. Banco can also be traced back to Ancient Rome where the lenders would set up stalls and people will deal with them over a long bench called bancu. That time, the merchant just converts the currency into the Imperial Mint, which was the only thing, accepted in Rome that time.

Modern banking and technology

Through the long history of banking systems, several laws have already been put in place to regulate the banking system. International laws have been passed in order to facilitate smooth transactions between nations. With the aid of modern technology, banking has enabled faster transfer of money from point to point regardless of geographical locations.

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