A Brief History of Banking
Although the general perception may be that banks have held a relatively new phenomenon that has developed only in recent centuries, is the reality that has been thriving in one form or another for almost 3,750 years.
It ‘was during the heyday of the Babylonian Empire from 1728 – 1686 BC that the code of Hammurabi, named after the sixth and most successful king of Babylon, is was conceived and written. Information on laws of the land and the financial arrangements have been six feet high on tables of stone, including details of the carved, such as loans, guarantees, interests and acted after a series of standardized procedures. However, the Code of Hammurabi some important principles, namely that banks can not exist without organized the quartet of any rules, regulations, political stability and a developed economy. />
Both the ancient Greeks and Romans used its banking system has developed for the use of a universal currency and credit based. But, as the borders of the countries’ were crossed, and travels around the world was a more frequent need for international banks emerged.
could be resolved with a foreign bank outside the kingdom to trade with the Romans also know with confidence that certain rules apply. So even though the Greeks had a successful system based on credit, previously managed by the Egyptians for centuries, it was the Romans who introduced legislation to regulate key financial institutions and practices.
their model of successful and respected international bank in the Mediterranean until the fall of the Roman Empire in the sixth century in Europe, in a dark period of political instability and mistrust. As a result, this means that banks are not formalized work the same way. It was not until nearly a millennium later during the 16th century, western banks and cast it with the false impression that banks had a new concept. However, developed by the same basic needs, first went to the Babylonians, Greeks, and finally, the Romans their banking regulations, rules, and led to the formation of the Royal London in 1565 to create, generally considered one the most educational of UK banks. It ‘was renewed by the principle that standardized systems for deposits, loans or guarantees, and finally developed has been copied worldwide.
In the last four centuries westernized /> banking principles are now firmly established worldwide, and although not recognize the King Hammurabi of Babylon, is old, International Banking is deeply rooted in its original concept developed about four thousand years.
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