1st Graceful Evolution of Banking in EUROPE-USA-ASIA

1st Graceful Evolution of Banking in EUROPE-USA-ASIA | Banking | studynotes1.com

Introduction

    Banks and financial institutions are important in every country’s economy. In today’s modern technological age, banks have become more and more important. Money has a unique general importance in the economy, banks are working to move this money easily from one place to another. In today’s world, the growth of a country’s economy depends on the efficiency of its banks and financial institutions. Banks help in the development of the economy by generating credit and meeting the financing needs of different sectors. Banks accept the balance amount deposited by these needy people in the form of deposits and make the loan facility available to those account holders for banking business. Due to this facility, customers can buy various items. This helps in improving the economy of the country. It also raises the living standards of the people. The Bank provides financial assistance for the development of agriculture, various industries and trade. This also gives impetus to the economy. The financial situation of a country whose banking business is in progress is also advanced. In the current economy, banks are making rapid progress in their business along with money through checks, debit cards, credit cards, as well as Google Pay, Phone Pay, Bhim App etc. In the present age, financial transactions are largely dependent on banks. Even if the banks remain closed for one or two days or the transactions of the banks remain closed, the country’s economy seems to be in a slump.

THE EVOLUTION OF THE BANKING BUSINESS

What is origin of Banking
    The etymology of the word Bank is understood to have been found in the business of moneylender and coinage, as well as in the goldsmiths, which have been going on since ancient times. According to some experts, the word bank may have been derived from the Italian word banco, bancus, which means ‘sitting bend’, and it is said that the ‘Jews’ in the Lombardy region of Italy are medieval. In the past, people used to sit on the bench and exchange coins. Also, the business of lending to the needy was known as banking business. According to economist McLeod, the English word ‘bank’ is derived from the non-Italian word monte and the English word ‘bank’ is derived from the German word monte. Used to be called. The word means ‘back’ or ‘table’. The word bank must have originated from this.

A) The evolution of banking in Europe

1. Babylon 
    In Babylon, Greece and Rome etc. B.C. 2000 years ago, people had faith in their religion and in God. So people used to keep their money, gold and silver ornaments with the priests in the temple. The priests of the temple used to take care of all these things properly. The EGB Bank in Babylon was developed just as it is today. People take back as much money as they need from the priests near them, when the priests noticed that the priests started giving money to the needy in the form of loans and started charging interest on the loans and since then The priests started doing banking business.
2. The Jewish Bank Business in Italy 
    The Christian people of Europe, according to the biblical message of ‘interest is a sin’, did not act as a lender, but since there was no such obligation on the Jewish people in Italy, the Jews started banking in the twelfth century. Revived. Not only that, but I also spread the banking business in England, France and Belgium. During the Middle Ages, along with the development of trade and commerce in most of the countries of Europe, the banking business also flourished.

B). Evolution of the banking business in England 

    The history of the banking business in England during the medieval period can be summarized as follows –

C) The evolution of the banking business in the United States:

    1. The first land bank was established in 1686. These banks were set up to meet the financial needs of the people living in the United States.
    2. In 1741, the second Land Bank was established. This bank was also set up to cater to the financial needs of the people.
    3. The State Bank of Pennsylvania was established in 1780, and the Bank of Maryland was established ten years later.
    4. 1782: In the eighteenth century, the banking business in the United States was limited to the colonies, colonial governments, merchants, at that time the business was seldom developed. Etc. C.     In 1782, the first modern bank in the United States was established in Philadelphia under the name The Bank of America.
    5. The First Bank of the United States was established in 1791 on the principle of joint capital.
    6. The Second Bank of the United States was established in 1816. However, in 1836, the bank was closed due to non-receipt of extension of its charter.
    7. The National Bank Act was passed in 1863 to regulate the operation of banks in the United States.
    8. The Federal Reserve Bank was established in 1913 by a merger of private banks in the United States. It was made mandatory for every private bank to keep a certain amount in this bank.

D) The evolution of the banking business in Asia

In ancient times, banking business was established in Asia, India, China and Japan. However, in Asia, Japan was at the forefront of banking development. Both India and Japan have a lot in common in terms of banking business. The evolution in Japan is as follows:
1. 1872 – National law is passed in Japan, followed by the modern banking business.
2. The first bank, The Ichi Bank, was established in 1872.
3. Mitsue Bank was established in 1876.
4. The Yokohama Space Bank was established in 1880.
5. In 1949, Japan made significant changes to its banking law, which later became the central bank.