When Did The Banks Originate

 

A bank is a place where we deposit our savings to make it secure. The bank provides loan and various interest subjected agreements and thus makes its earnings, adding a requisite sum to our account as a gift of making its business. Banks can be thus thought to as a successful money saving business and talking about how banks originated, this is quite in fashion these days. In case to know how banks got originated, you may choose to read the information that we are providing here.

When Did The Banks Originate

1. The Origination of Word “Bank”:-

The word Bank has been originated from the Italian word “Banko” which means Bench. In the medieval period, the Italian people used to make transactions sitting on benches and thus the banks got this name as it was as easy as the way the Italian people used to make transactions sitting on benches.

2. The Earlier Form of Banking:-

You must have heard about the term ‘Saahukar’ or the Goldsmiths. Well, these were the people meant for the purpose of banking in the olden times. People used to get loans on their property as well as ornaments from these people only failing which there deposited item could be possessed by these sahukars or goldsmiths.

3. There Was Banking Even Before Sahukars and Goldsmiths:-

Before the age of goldsmiths and sahukars there used to be an age of making transactions reaching the Jews that were the people meant for this purpose. The sahukars came later on and then came the goldsmiths who were indulged in this lending of money as well as calculation of interests.

4. How the Concept of Receipts started:-

The money that people used to borrow from these sahukars and goldsmiths was proposed to be paid along with the interest. Now this was made with the help of an agreement and this includes a bank note to given to the merchants for cash. This way the concept of receipt started and thus it came on undergoing an improvement with each day passing.

5. Why Concept of Lending And Borrowing Based On Sahukars And Gold Smiths Failed:-

With increasing urge to Make money, the merchants, sahukars and goldsmiths were getting too much greedy and thus they had started possessing other’s property as well as jewelery either illegally or by imposing hard to fulfill conditions on people. This made the belief of people get removed from the sahukars, merchants and goldsmiths and thus there was, felt a need to go for some new technique to go for the same.

6. The Modern Banks:-

Just after when a bank was established commercially in Venis, there people started getting into these new established banks for the purpose of making transactions. There were many new banks established afterwards and soon there were banks in almost every part of the world. The best thing about these banks was that they offered a kind of security and value for the money and moreover the Reserve Banks used to govern these banking units. With developing nations, there came a sort of development with the banking system as well and thus as a result we see the modern version of banking.