Answer: The forerunners of the first banks date back to ancient times.
Explanation:
To better understand the functioning of banks, it is also good to know their historical context. The forerunners of the first banks are evident in ancient times throughout Greece, Rome, and the Middle East. That is, in those places where civilizations intensified. The king of Babylon of Hammurabi enacted a law around 2500 BC that banking from the religious to a commercial activity. However, banking in the real sense of the word can be talked about from the moment when money becomes paramount. The emergence and development of money are closely related to the rise and the development of banking because the emergence and development of banks were made possible by the appearance of coins.
Banks in today's sense. As a result, one can only talk about the developmental stages. In doing so, we can distinguish four stages through which they are banks have been through history:
1. Phase One (starts from VII B.C)
2. The second phase (occurs at the beginning of the fourteenth century);
3. The third phase (beginning in the early eighteenth century);
4. The fourth phase (originating in the early nineteenth century).
In the first phase of development of the banking system, particular emphasis is placed on the exchange, transfer, pledge, and loan business, as well as three types of bank temples, city (state) and private. In Rome, banking developed in Greek.
In the Middle Ages, a second phase occurred. In the tenth century, the influence of the city in Europe increased, and so did banking. The first bank in the history of banking is considered to be Casa di Sant Georgio, founded in 1407 by the Governor of Genoa.
The banks that emerged after that were primarily institutions payment system, whose primary purpose was to simplify international ones cash transactions.
At the beginning of the eighteenth century, a third phase occurred. This phase is characterized by the establishment of public and private banking institutions. During this period, strong banking institutions appeared in France, Britain, and Russia.
The fourth phase in the development of banking began in the early nineteenth century, first in England and then in other countries. Banks are established as shareholders of companies with significant equity (founding capital), as compared to the previous period. This phase is closely linked to the Industrial Revolution, and, along with this turning point in human history, the banking system will expand. The century as mentioned above, also saw the intensive development of the modern capitalist system, which is undoubtedly related to the banking system.
