If we see the history, we will
come to know that there was no proper management for money. A man felt insecure for saving his money.
First, he buried his savings underground. But this practice was not good
enough. As a result, he deposited his savings with the strong persons who hired
armed guards on wages. Thus this practice moved to widely accepted business,
which gives rise to the idea to lend the deposited money.
In this way, persons who receive deposits earned income from two sources, from depositors and from borrowers. In the banking development there is a great service of group of three persons.
In this way, persons who receive deposits earned income from two sources, from depositors and from borrowers. In the banking development there is a great service of group of three persons.
1. Money lenders.
2. Merchants.
3. Goldsmith.
Moneylender: A person who offers small personal loans at high
interest.
Merchants: A person who buys and sells goods for profit.
Goldsmith: A person who makes or sells articles of gold.
Following is the history
of banking.
Banking History of Italy
The bank of Venice is the
first bank of the banking history. This bank was established in Venice (City of
Italy) in 1157. Different countries in the world followed the footsteps of this
bank to establish banking system in their countries.
Banking History of England
In England people deposited
their money with Goldsmiths for safety. The Goldsmiths started lend the
deposited for a high rate of interest. They also paid interest to those people
who deposited their money to attract their savings. At the end of the 17th
century the cost of war with France was massive, so the group of Goldsmiths
established a bank with name of “Bank of England” in 1694 in order to provide a
loan to the Government. Later, it became
the central bank of England, and 1946 it was nationalized. The bank has played
a vital role in the development of the modern banking.
Banking History of the USA
The first bank of the USA was
founded in February, 1791 with the name of “Bank of United States” by the first Secretary of the Treasury, Alexander Hamilton. The purpose of the bank was to pay of war debts, raise money for the
new Government, establish a national bank and create common currency. However,
the bank was wounded up in
1811. Banking History of India
The first bank of India is
“Bank of Hindustan” which was founded in 1770 at Calcutta under European
management system. This bank was liquidated in 1829-32. The bank of Calcutta
was established in 1806. In 1809, it was
renamed as the Bank of Bengal. Reserve Bank of India was established
in 1935 as central bank. Habib bank was established in 1941 at Bombay. And
Muslim Commercial bank was established in 1947 at Calcutta. MCB was established
with a view to provide banking facilities to the business community of the
sub-continent.
Banking History of Pakistan
Before independence, Reserve
bank of India was the central bank for both India and Pakistan. After partition
the British Government’s distributed the reserves of “Reserve Bank of India”
between Pakistan and India. Consequently, State Bank of Pakistan was organized
in July 1948 in order to start the central banking functions in Pakistan.
Habib bank was shifted from
Bombay to Karachi in 1947. In July 1974, all commercial banks were nationalized
during the government of Zulfikar Ali Bhutto. In August 1991, their
privatization started.
0 comments:
Post a Comment