Skip to main content

Where did the banking system originated?

write origin of modern banking system?
write the history of modern banking system?
Where did the banking system originated?
ORIGIN OR HISTORY OF MODERN BANKING SYSTEM In the opinion of some writers the word bank has been extracted from the Italian terms BANCUS or BANQUE which means BANCH. Modern Banking system originated and spread over the whole civilized world from Italy and England where people deposit their savings to the persons having the qualities of solvency, Honesty, and Safety. These trustees charged fee from depositors to earn livelihood. This practice turned into a widely accepted business and innovator trustees lend the deposited money and earned income from two ends, from depositors and from borrowers. In banking development the services of three groups cannot be ignored:

THE GOLDSMITHS: In ancient time some persons having the qualities of solvency, Honesty, Safety. Therefore people were trusted on them to keep money as deposits. The depositors would be given slips as the proof of their deposits; these slips were accepted by the people instead of money in transacting business due to high reputation of goldsmiths. These slips were the origin of the modern bank notes.

THE JEWISH MERCHANTS: A group of Jewish merchants migrated to England from Italy in the 14th century. These wealthy and well repute merchants began to lending the money for business purpose and charging interest. These merchants also financed foreign trade by issuing slips, through their agents. These slips were the origin of modern bills of exchange, draft and letter of credit.

THE PROFESSIONALS MONEY LENDERS: Many rich and wealthy persons used to lend money for the sake of earning interest. They also are used to taking deposits at a lower rate of interest and advancing loan at a higher rate. The gap of these rates was the profit of them. The similar practice of taking deposits at a lower rate of interest and advancing loan at a higher rate is the usual function of modern banking.

According to the modern banking, bank of Venus was the first bank, which was established in 1157.After that some other banks established which are given below.

• Bank of Barcelona in 1401

• Bank of Genoa (Italy) in 1407

• Bank of Amsterdam in 1609


During the era of King Charles II British Government established a bank named bank of England in 1694. It was grow very rapidly and this bank plays a vital role in the development of modern banking system in the world. In 1946 British govt. announced it as central bank of England. BANK HISTORY OF INDO-PAK: In Indian subcontinent bank of Bengal was the first bank of established in 1809. After that in madras 1840, Bombay 1863 other bank was established. In 1935 reserved bank of India established as Central bank. Habib Bank was established in 1941 and Muslim commercial bank was established in 1947. In July 1948 Pakistan established its central bank named “State bank of Pakistan”

Comments

Popular posts from this blog

Free Download Notes XI & XII Commerce Notes & Book In Pdf

Free Download Notes XI & 1st Year Notes Download In Pdf XI Accounting Book  Economics Notes Pdf Free Download Urdu Notes for 1st Year (Class 11)  Another Urdu Notes For XI  Islamiat For XI  Principle Of Commerce 1st year XI POC Notes (Best) Server 01 XI POC ( Principle of Commerce ) Guess Paper Solved 2021 Free Download Notes  XII Commerce Notes & Book In Pdf XII Accounts Book With Solutions 2nd-year Urdu Notes Free Download Pdf XII English Notes Pdf 2nd Year English Notes Adam jee  2nd Year Commercial Geography  2nd Year Pak Studies Notes XII Pak Studies Notes In English Adam Jee XII Pak Studies Solved Paper XII Banking Notes (Shah Commerce) Another 2nd Year Banking Notes XII  CG Solved Papers Commerce Online Notes By Sir sultan hamid hussain (All credit goes to Sir Sultan) Server 01 Commercial Geography Notes In English By Sir Sultan Server 01 Commercial Geography Notes Notes In Urdu By Sir Sultan Server 01 XII Banking Notes Short Q

Questions And Answers The Count’s Revenge By J.H.Walsh

THE COUNT’S REVENGE (J.H.WALSH) Q: 1 What Arab custom is referred in the short play “The Count’s Revenge”? An Arab custom mentioned by the Countess of Morcerf to Albert and the Count of Morcerf when the count of Monte Cristo leaves their house without eating anything. The custom runs as “Never to eat food at the house of a deadly enemy”. She strongly believes that since the Count of Monte Cristo has a faith in that custom and thinks them to be his enemy, and hence not eat anything at their place.   Q: 2 What do you know about the reaction, plans or intention of Albert? Albert, the brave young son of the count of Morcerf, was deeply shocked by the disgrace of his father and family. As a man of honour, he showed severe emotional reaction to the unhappy incident. Albert made his mind to trace about the unknown enemy of his family and avenge the family honour. On his request, Beauchamp, a close friend of Albert, discovered the name of the enemy. It was Albert;s

English Essay Problems of Karachi

Problems of Karachi Karachi is the biggest city in Pakistan and one of the most thickly populated cities in the world. Its population has increased rapidly and accordingly has given rise to many social problems. People of this metropolis are becoming more and more concerned about solving these serious problems, some of which are discussed below. The ever-increasing rush of heavy traffic on the roads is resulting in heavy loss of human life. One day or the other, people suffer from accidents due to reckless driving. Some lose their vehicles and some go to the police. This is due to lack of civic sense in the citizens and violation of traffic rules. Traffic jams, road quarrels, untidiness and damage of public property are also the results of this problem. The government has not done any planning to control this situation in the past two decades. In the same manner, the government has never emphasized upon population distribution. As a result, slum areas are rapidly being built, wher

Short Questions Answers of The Prisoner of Zenda ~Drama Novel Prisoner of Zenda

 N OVEL Question 1)Tell in your own words how the first meeting came off between the two distant cousins? Answer) Rudolf leaves the inn one day as he is given an opportunity to stay at Jahan’s sister at Strelsau. Instead of going, he decides to walk through the forest and have a look at the castle of Zenda. He sits down in the forest to have some rest as well as smoke a cigar. After smoking his cigar, he unintentionally falls asleep. Shouts and sound of laughter wake him up. On opening his eyes, he sees two men standing near him. They are Fritz Von Tarlenheim and Colonel Sapt. They tell him that he looks exactly like their king except that he has a beard. At that moment King Rudolf appears. Rassendyll greatly surprises to see king Rudolf in the forest of Zenda. He gives a cry when he finds that Rudolf is just like him. Rudolf’s face and appearance are quite like his own. Rudolf’s height appears to be slightly less than his. Rassendyll bows respectfully before the king. In a happy m