How was banking started?

According to the Great Economist, Geoffrey Crowther, the following community groups are the  ancestor of modern banking were:
 
     -The Merchant Traders
     -Gold smith
     -Money lenders

 
                                                                                                                                                                                                                                                     Merchant Traders , who first evolved the system of banking by trading money and commodities from one person to another person by issuing substitute documents of money which is called hundi , draft in modern world.
Two Person Wearing Gray and Blue SuitsSimilarly,  The Goldsmith justly felt that temples were the safest place to store their gold as they were constantly attended , well built and well secured , thus deterring the thieves.
Finally, money lenders in the early age has contributed in the growth of banking to a larger extent. They used to advance the coins on loan by charging interest.

The history of the banking couldnot be known exactly but it is believed that in 1157 A.D. first public bank in the world was established with the name "Bank of Venice " in Italy.Similarly, in 1407 A.D "Bank of Barcelona" and in 1407 A.D "Bank of Geneva" was established. In Netherlands "Bank of Armsterdam" was established in 1609 A.D which was the most famous bank of that time.

               Modern Banking was started only after the establishment of " Bank of England " in 1694 A.D. Banking sector was rapidly developed due to adoption of technologies , development of communication and transportation system in England. Banking business took its new height in 17th century. The oldest bank of that time which is still in existence is " Monte dei Pashi Di Siena " headquartered in Siena , Italy continuosly since 1472 A.D

In Modern World " Industrial and Commercial bank of China " and " China Constuction Bank" are two biggest incorporations as per 2017 forbes global 2000, but US based competitors are gaining major grounds.

                                                               

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