Wednesday, November 27, 2013

First Bank In The World - When was the first bank established in the world?

History of Banking

Today banks provide a variety of services, but they actually have two main tasks.
The first task is to accept deposits from people and keep their money until they need them again.
The second task is to give money loans to people that they are willing to pay back with interest.
Having this definition in mind, we can say that the banking is old as mankind.
In ancient Babylon, Egypt and Greece people were engaged in banking.
The temples were usually the place where the money were deposited.
In Rome, in 210 BC with decree published by the Forum, the location of the money changers was determined.
However, in the Middle Ages, taking interest was considered a sin, and some countries have banned their citizens to establish a bank.
Of course, some people were still doing it.
Thus, in the Middle Ages money changers in Italy did their business on the street, on the bench, which on Italian is called “banco”, and hence came the name "bank".

When was the first bank established in the world?

Modern banking first emerged in Venice in 1587, when the “Banco di Rialto” was founded. 

The bank received deposits and allowed the investors to write checks based on money they had in the bank.
In 1619 “Banco del Giro” took over “Banco di Rialto” and started to give receipts on the invested silver and gold, which were used as a cash receipts.
Bank of Amsterdam, founded in 1609, also issued certificates which were used as a "bank's money."
In England the jewelers were also bankers until 1694, when the Bank of England was founded, which held a monopoly on public banking in England until 1825.

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