Origin and development of bank

Origin and development of bank

There is no uniformity among the economists about the origin of the word "Banking" The term bank is derived from the Latin word "Bancus" which refers to the bench on which the banker would keep their money and his records. Some persons trace its origin to the French word "Banque" and the Italian word "Banka" which means a bench for keeping, lending, and exchanging of money or coins in the marketplace by money lenders and money changers.

During the early periods, private individuals mostly did the banking business. As a public enterprise, banking made its first appearance in Italy in 1157, when the "Bank of Venice" was established. Following its establishment, the Bank of Barcelona and Bank of Genoa were established in 1401 and 1407 respectively. They used to exchange money, receive deposits, and discount bills of exchange.