The first institutions that took on the storage of money and valuables, were the temples. For example, the inhabitants of ancient Athens kept their savings in the temples of the Acropolis and the medieval Europeans often save money in the monasteries.
The word “Bank” is of Italian origin. Word banco (translated from Italian bench, table) in the XV-XVI centuries in the Venetian Republic was called the benches on which the money-changers and usurers were put coins and business papers. If the Jew was bankrupt and could not pay money for its payment obligations, then this bench was broken on his head. From the Italian banco rotto (broken bench”) is the modern word “bankrupt”.
In medieval Europe, the Roman Popes were strictly forbidden to lend money at interest to cash in on the financial difficulties of faith was considered a terrible sin. Therefore, in 1179, Pope Alexander III declared moneylenders hardened sinners and was forbidden to admit them to communion. In addition, the so-called “bankers” were not allowed to be buried on consecrated ground, so they, like suicide, was buried outside the fence of the cemetery.
Unlike Christianity, Judaism does not forbid the believers to engage in usury, so the vast majority of the medieval “bankers” were Jews. By the way, is exactly what many of the Jews were money-changers and usurers, often led to the Jewish pogroms, the instigators were desperate debtors.
As Orthodox Christianity, Islam prohibits usury. Therefore, banks in Muslim countries never lend money at interest. And Islamic banks do not accept as deposits money earned on the sale of alcohol, tobacco, p*rnography and … pork! In addition, Muslim bankers try not to have any dealings with revenue from gambling.
The oldest active Bank in the world is the Italian Banca Monte dei Paschi di Siena. It opened in 1472 in the city of Siena. Until recently, the oldest existing Bank in the world was considered to be the Swiss Bank Wegelin & Co, founded in 1466, but it ceased operations in January 2013.
Banks in the North of Italy give farmers loans secured… cheese. Head of Parmesan Bank keeps 2-3 years in a special storage until they ripen. If the cheese maker fails to repay the loan by the time of ripening of the cheese, the Bank sells cheese and reimburse their losses.
In modern Switzerland, there are about 400 banks that hold deposits with a total amount of about 52 trillion US dollars. Interestingly, in one of them there is a score on 13 Swiss francs, opened in the name of C. I. Lenin in 1902 and still not devastated.
If you believe the Guinness Book of world records, the largest Bank robbery is the mass exportation of goods from the Reichsbank of Germany in 1945. Then in an unknown direction disappeared a large part of the gold reserve of the third Reich and many cultural treasures stolen by the Nazis from European museums, with a total cost of approximately $ 5 billion (dollars in today’s prices).
FAQs
Two ATMs are located in Antarctica. They are both run by Wells Fargo. That is undoubtedly one of the most fascinating banking facts! Saddam Hussein stole about a billion dollars from the Iraqi central bank just a day before the Iraq war started.
What are 5 good things about banking? ›
- Your money is safe. ...
- Your money is protected against error and fraud. ...
- You get your money faster with no check-cashing.
- You can make online purchases with ease and peace.
- You have access to other products from the bank. ...
- You can transfer money to family and friends with.
- You have proof of payment.
Two ATMs are located in Antarctica. They are both run by Wells Fargo. That is undoubtedly one of the most fascinating banking facts! Saddam Hussein stole about a billion dollars from the Iraqi central bank just a day before the Iraq war started.
What are 3 things a bank does? ›
Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds.
What is a bank very short answer? ›
A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.
What are 5 facts about banks? ›
Banking Fast Facts
- $17.1 trillion in deposits are held by banks.
- 94.6% of households have either a checking or savings account.
- $83.1 billion in FDIC assessments paid by banks over last 10 years.
- 251 million retail customers and 55 million small business customers.
Banks create money when they lend the rest of the money depositors give them. This money can be used to purchase goods and services and can find its way back into the banking system as a deposit in another bank, which then can lend a fraction of it.
What makes banks unique? ›
Historically, banks have had a comparative advantage in certain functions - such as providing liquidity and payment services and supplying credit and information - which competition, technological change, and institutional development have increasingly eroded.
What is the oldest bank in the world? ›
The oldest bank still in existence is Banca Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.
Why is banking interesting? ›
Benefits of a Banking Career
Banking is a profession that offers a huge variety of opportunities, as well as the possibility of rapid career progression, all with good pay and benefits. For those willing to accept the challenge, the rewards can be great. Wide range of job roles—not just in finance!
Character, capital (or collateral), and capacity make up the three C's of credit. Credit history, sufficient finances for repayment, and collateral are all factors in establishing credit. A person's character is based on their ability to pay their bills on time, which includes their past payments.
Where do banks borrow money from? ›
Banks can borrow at the discount rate from the Federal Reserve to meet reserve requirements. The Fed charges banks the discount rate, commonly higher than the rate that banks charge each other.
What do banks make money? ›
Banks earn money in three ways: They make money from what they call the spread, or the difference between the interest rate they pay for deposits and the interest rate they receive on the loans they make. They earn interest on the securities they hold.
Why is a bank called a bank? ›
The word bank comes from the Italian word banco, meaning a bench, since Italian merchants in the Renaissance made deals to borrow and lend money beside a bench. They placed the money on that bench. Elementary financial records are known from the beginning of history.
What does bank mean in slang? ›
phrase. To make bank is to make a lot of money quickly. [informal] She isn't here to help women – she's here to make bank. See full dictionary entry for bank.
Who invented banking? ›
These grain banks were developed first in the Fertile Crescent by the Babylonians in Mesopotamia, but they were later perfected by the ancient Egyptians. Historians believe the grain banking system in Egypt was so advanced that it was like modern-day banking systems in terms of transaction volume and networked banks.
What are the 5 most important banking services? ›
The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.
What are the 5 C's of banking? ›
Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.
What are the pros and cons of a bank? ›
In conclusion, traditional banking offers a range of advantages such as personalized customer service, physical branches, and a sense of security and trust. However, it also has its drawbacks, including potential fees, limited accessibility, and lengthy processes.
