History of Banking

History of Banking

which bank is oldest bank in th world

Banking history is curious by many people. It is a matter of curiosity when and by whom the first bank was established. We have prepared a short article about the world banking history for you. We hope we can answer all your questions.

Historical Development of Banking

Banking BC It is a system starting from Sumer and Babylon until today. In the past, the banking system was not as advanced as it is now, as there was no high technology as it is now. The banking system, which started by only lending money in the past, currently serves with many products.

Development of Banking in the World

Banking has gained great momentum in the 20th century and has developed very rapidly in the last 20 years with technological and financial developments. On the other hand, the origin of banking goes back to the ancient times. In the early ages, banking services were offered intertwined with religion. It is known that priests, who are seen as reliable people, carry out banking transactions in the Red Temple in Mesopotamia. At that time, temples functioned as a kind of banking. B.C. The famous Hammurabi from the 2000s
It is reported that the laws regulate the lending transactions to be made in the temples, the methods of debt collection, the interest rates to be collected and the forms of pledge, mortgage and surety.

Sumerians-history-of-banking-min
Sumerians

Banking, which improved during the Sumerians, was carried out by bankers named Trapezites in Ancient Greece. The first banking crisis was experienced in the Athens Site. The problem was solved by forgiving some debts and re-evaluating the money in favor of the borrowers. Another interesting point is that the first state banks were established in Ancient Greece. The very high interest rates of the bankers caused each site to establish a state bank. Banking, which developed simultaneously with the growth of trade during the Roman Empire, later declined with the prohibition of interest by the Vatican Church, as interest rates reached excessive levels. For a while, the usury business passed into the hands of the Jews. Lending transactions, which came under the control of Lombards since the 13th century, shifted to London. In parallel with the gradual strength of the Lombards, banking also developed. These people, whose workplaces are called “Banchum” and themselves “Bancheri”, have been operating in the markets with a wooden desk and table called “Banco”.

which bank is first bank in the world medici bank siena

Banking has shown very important developments from early ages to today. Banking activities carried out in a Banco in the 13th century continued with technologically and modernly structured systems. The interest banned in banking activities performed in religious environments, with the effect of Reform and Renaissance movements, has made a significant contribution to the development of banking when this obstacle is overcome. In addition to these developments, banks have been established in today’s sense since the beginning of the 17th century. “In this framework, the Bank of Amsterdam (Amsterdamsche Bank) in the Netherlands in 1609, and the Bank of Venice in Italy in 1637. The Bank of England, which functions as a central bank, was established in 1654 in order to prevent instability in the market in England. “

oldest bank in us - bank of north america
Bank of North America, 1782


Modern banking in America started with the establishment of Bank of North America in 1782. When this bank was successful, other banks started to be established. The Bank of The United States, which is both a private bank and a central bank, was established in 1791. This bank operated as a public institution responsible for the amount of money and loans. With the Banking Law enacted in 1863 in the USA, a dual banking system consisting of state banks and national banks was established. However, the current Central Bank, the FED, was established by a law enacted in 1913. Banks were institutions that lent money and carried out banking activities by using their own resources from their establishment until the 19th century. However, starting from the 19th century, they started to use resources by collecting deposits, discounting notes and intermediating capital market issues. These developments gradually increased the importance of banks in economies and banks started to specialize according to their activities. After the “Great Depression” of the 1930s, II. Development and investment banks, which were established to finance the reconstruction of the places destroyed in the war after World War II, started to come to the fore. Resources created by the oil exporting countries investing their profits in banks after the oil crisis of the early 1970s in the same period, as a result of the collapse of the Bretton Woods monetary system, many changes and innovations took place in the banking sector, and new products and new financing techniques emerged. Banking, where computer technologies became widespread in the 1980s, was a period in which internet banking and electronic banking products spread rapidly in the 1990s.

online-banking-systems-in-uk

With the developing technology in the 2000s, banking has reached a different dimension. Now, instead of paper and metal coins, bitcoin and similar metals are now produced. For banking transactions, instead of going to the branch, it is done over the internet. Therefore, banking is no longer the same as before.

Questions and answers about banks

  1. What is the first bank in the world?

    The most famous Italian bank was the Medici bank (Banco Medici), founded by Giovanni Medici in 1397. Operating until 1327, Avignon had 43 bank branches. The oldest bank that still exists is Banca Monte dei Paschi di Siena, located in Siena, Italy, which has been operating continuously since 1472.

  2. What is the first modern bank?

    In 1609, the Amsterdam Bank, the first modern bank, was established to operate under the guarantee of the City of Amsterdam. Later, banks were opened in various cities, mainly Amsterdam, Paris and Hamburg.

  3. What is the first bank in UK?

    This instruction was the forerunner to the modern banknote or cheque. Around 1650, a cloth merchant, Thomas Smith opened the first provincial bank in Nottingham. During 1694 the Bank of England was founded.

  4. What is the oldest bank in world?

    1. Banca Monte dei Paschi di Siena (1472, Italy)
    2. Berenberg Bank (Joh. Berenberg, Gossler & Co. KG) (1590, Germany)
    3. Sveriges Riksbank (1668, Sweden)
    4. C. Hoare & Co (1672, England, UK)
    5. Bankhaus Metzler (Metzler Bank) (1674, Germany)
    6. Barclays Bank (1690, England, UK)
    7. Coutts Bank (1692, England, UK)

 

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