History of Banking

Banks are the eternal part of our economy. But how did they started?

History of banks dates back to agricultural period of human history when banking system was developed by merchant as a system of granting grain loans to farmers. Later in the ancient Greece and the Roman empire, lenders based in temple granted loans and accepted deposits. In Egypt and Mesopotamia, golds were deposited in Temple where it lies idle while trading concern and government needed them.
Banking system in ancient Greece was more advanced than any other places. Entrepreneurs and Temple undertook financial transaction. They accepted deposits, granted loans, and changes various currencies.

The modern banking system was started during medieval period in Italy and evolved across the entire Europe.The oldest bank that still exist is Monte Dei Paschi di Siena. However, the concept of advanced banking was developed by Adam Smith in 1776 along with his theory of ' invisible hands'. Empowered by his theory, the new financial system soon started with autonomous economy.

Banks has long came form the temple of the ancient world but the business they so have not changed. Banks issue credit to the people who need it and accept deposit from people