What Is The Historical Background Of Bank?

It is very difficult to state the complete historical background of banks or banking. It is not possible to learn when or how the banking system came into existence. Of course, it is sure that the banking system did not come all on a sudden by way of any revolution. Rather, it came into existence naturally and gradually. In its crude form, the banking business was confined in the hands of money lenders in the pre historic days.

It may be said that banking in its most simple form is as old as authentic history. As early as 2000 B.C. Babylonians has developed a system of banks. In ancient Greece and Rome the practice of granting credit was widely prevalent. In Rome some of the banks carried business on their own account and others were appointed by the government to receive the taxes. With the gradual development, different types of documents, hand notes, slips, etc., used by the early money lenders in transacting their business have been turned into different documents and instruments of modern banking.

During the early periods, although banking business was mostly done by private individuals, many countries established public banks either for the purpose of facilitating commerce or to serve to the government. The bank of Venice, established in 1157, is supposed to be the most ancient bank. In some other countries of Europe, deposit and exchange banks were established in 14th century. First bank of Sweden was established in 1556.

The beginning of English banking may be correctly attributed to the London gold smiths.

Importance of money as the medium of exchange and necessity of controlling was realized since the human society begin "Babylonian" were the firth development of the banking system as early as 2000 BC Banking activities of the same nature were started in the third century BC. In the Roman Empire and continued through 3rd century AD But with the fall of this kingdom, these institution were totally finished from that part of the Europe. Banking activities in either from remained in China, Egypt and subcontinent.
During the middle of the 12th century, banking spread in different European countries particularly in Italy, "Bank of Venice" is probably the first public banking institution founded in 1157. Similarly Bank of Barcelona funded in the 1407. "Bank of England" was founded in England in 1694. All these were public bank and their principle function were dealing with foreign exchange.
Development of the modern banking, especially in England was started by Jewish merchants who migrated from Lombard in Italy in the 14th century, but the goldsmiths are considered the real ancestors of present day banking system. During the second half of the 18th century various relating to banking came into beginning and banks spread in all important countries of the world. During the first half of the 21st century banking underwent great changes and great verity of function came under the range of banking business.
In the subcontinent indo pak, foundations of modern banking were laid in 18th century in Calcutta when with the help of European banker's first bank "Bank of India" was established. After that government of India founded "Bank of Bengal" also new opening at Madras and Bombay. Imperial "Bank of India" was founded in 1921, where as "Reserve Bank of India" was established in 1935 with the power as the central bank.

Historical background of commercial banks in Nigeria