How Banking Came Into Existence
Banking has not always been in existence. Its origin can be traced to some ancient civilizations and progress in human societies that made doing business easier for people at that period in history. It is the advancement of trade and economy that brought about the need for banking. This advancement was sustained until we arrived at the current way of banking. Societies have often exchanged goods and services through money and other means since ancient times.But money does not regulate itself. When left to the global market, the value of a currency can be destroyed. That is why understanding the origin of banking as we have it today is very important. Banking first began in a form known as prototype banking. People that were involved in trading goods and services in the early times used the prototype kind of banking. It has its origin in ancient Assyria, Inda and Samaria, and many parts of the ancient world as long as 2000 BC. The merchants in these places gave loans to farmers in the form of grains and all those involved in the business value chain. In those days, business was not anything like it is today. Italy reaped the bountiful benefits of international trade leading to a strong and powerful merchant class that had influence and even controlled governments That is very different from what the relationship between banks and the state is today. Things have changed dramatically allowing banks to make great improvements and advancements. For more details read from:
