Banks: A Historical Perspective

Banks have been around in some forms or another for thousands of years. Ranging from loaning, to storing, to investing your money, banks today are important players in the financial markets. Remember though, banks only work if they have money. Without individuals trusting them, they would not exist

Checking accounts stem from a long and historic story concerning the evolution of banking. Banks have been around for centuries and are even more relevant today than they were many years ago. This means that finding the right bank for your needs is going to be more important now than ever before. Let’s briefly look at how banks have progressed in order to give ourselves a better view of exactly what we should be looking for.

The first version of a bank probably originated around 2,000 BC. These people acted as lenders for merchants in order to help them transport goods around the countryside. Money lending was a popular trade during Biblical times and there are many references to this practice within the Bible itself.

However, the first bank that resembled today’s modern structure probably didn’t start until medieval times. By the early Renaissance period, there were many established banking structures in what is now Italy. If you remember your high school history lessons, the name Medici will be familiar. This banking family was one of the most famous during the 1300s. From Italy, banking spread throughout Europe and from Europe out into the New World. By the time the American colonies were settled, banking was a trusted and established institution and a very respectable career path to follow.

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