Banks are an integral part of the economy of any state. You can also take a loan or an installment plan from the bank to purchase things that a person is not able to pay immediately. However, how have banks become so developed?
First cans
As soon as people began to participate in trade relations, the need arose for such organizations. Not every person had the necessary resources to provide themselves with the necessary. Because of this need, money-lenders appeared who gave a certain amount at interest, thereby earning a living. They can be considered the first bankers.
Interesting fact: The first banks appeared in Babylon, in the VIII century BC.
Gradually, moneylenders began not only to issue loans, but also to accept deposits for storage, thereby giving the opportunity to earn. They tried to make a profit from the obtained property, for example, slaves sent to work on land were bought with the money provided as a contribution. The food obtained with their help was sold, and its amount with interest was returned to the depositor.
Banks of the Middle Ages
In the period from XI to XIV in Europe, banks actively developed the ability to provide loans and pay payments. In addition to the usual storage of money, a person could now pay bills. For example, if a peasant had to boyar 100 coins, he could simply transfer them to the banker, replenishing the account of the latter. An appropriate entry was made in the bank book, after which the debt was considered repaid. The bank also acted as a guarantor that the amount was paid without any fraud.
At the same time, the loan system was improved.When a person borrowed money, he made a special entry in the documents, confirming the transaction. People were attracted by the fact that they could quickly get the right amount and spend on business without any problems. By the way, for several centuries this procedure has not changed much. For example, loans at Mani Men are also quick and easy.
Modern time
Now the activities of banks are not very different from their counterparts in the Middle Ages. Organizations also issue loans, allow payments and deposit money.
One of the main innovations that has appeared over the past decades is the availability of bank cards and the ability to store money on them. This greatly simplifies trade relations in society. Arriving at the store, a person can pay with a card, and it is not at all necessary to have the necessary amount in the wallet, just as there is no need to keep money at home and be afraid for their safety.
Interesting fact: the first bank card appeared in the 1950th year, it was a credit card and allowed owners to borrow unlimited amounts of debt.
Economists believe that it was the appearance of cards that contributed to the rapid development of banks. As long as a person stores money on a card, an organization can use it for profit. Thus, the more bank cards open, the more capital the organization has for investment.
