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Banking history is really long and very interesting and dates back to ancient times. Here’s a very brief overview:
Ancient Origins:
-Mesopotamia: The first forms of banking date as far back as 2000 BCE in Mesopotamia. Early banks were in the form of temples and palaces that accepted grain and other valuables, which they then lent out to farmers and merchants.
-Ancient Greece and Rome: In these societies, the temples and money changers provided loans, deposits and currency exchange.
Medieval Europe:
-Italian Banking: During the Renaissance Italian cities such as Florence and Venice and Genoa started to become the banking finance centers. The Medici and Fuggers families established highly influential banking dynasties.
-Jewish Bankers: Jewish communities were actively involved in banking and finances during the Middle Ages. A lot of times they remained the only source of a financial service when others fail to provide it.
Modern World:
-18th and 19th Centuries: This was the period of growth in banking, as central banks were established to control the monetary policy and oversee the financial system.
-20th Century: The modern developments in banking started in this century. The commercial bank, investment bank, and central bank emerged in this century. The Great Depression and several financial crises resulted in tight regulation and oversight of banking.
-Digital Age: The 21st century has seen the digital age, which has revolutionized the banking industry through internet banking, mobile banking, and fintech innovations.
Banking has been with us since the early civilizations. It has developed gradually from simple lending and borrowing to a complex system of financial services. It has helped in the development of economic activities, such as trade, investment, and innovation.