History of Banking

Topics: Bank, Monte dei Paschi di Siena, Florence Pages: 5 (1003 words) Published: January 28, 2015
History of Banking
MONETARY
The history of banking depends on the history of money-
 Two of the earliest things understood as available to barter are -Grain-Money -Food Cattle-Money
((((Grain-money and food cattle-money are used from at least 9000 BC))))

Anatolian Obsidian as a raw material for stone-age tools being distributed as early as 12,500 B.C., with organized trade occurring in the 9th millennium.

((((In Sardinia one of the four main sites for sourcing the material deposits of obsidian within the Mediterranean, trade of this were replaced in the 3rd millennia by trade in copper and silver.))))

Stable economic improved with the change from the reliance on hunting and gathering of foods to agricultural practice, during periods dated as beginning sometime after 12,000 BC, at approximately 10,000 years ago in the Fertile Crescent, in northern China about 9,500 years ago, about 5,500 years ago in Mexico and approximately 4,500 in the eastern parts of the contemporary United States.

Earliest Form of Banking
-Deposited in temples ("treasure houses") and treasuries.
(((Wealth was usually deposited in temples ("treasure houses") and treasuries. The earliest banks were used exclusively by rulers to fund the more important and larger festivals and for building expenses.))))) Archaeological Evidence

-Tokens  -Code of Hammurabi
((((Objects called tokens made of clay have been recovered from within Near East excavations dated to a period beginning 8000 B.C.E and ending 1500 B.C.E.,  made as records of the counting of agricultural produce))))) (((A very early writing on clay tablet called the Code of Hammurabi, refers to the regulation of a banking activity of sorts within the civilization))))

Mesopotamia
-Banking as understood as in an archaic state (or quasi-banking) is thought to have begun during a period as early as the second part of the fourth millennia to as late as the third to second millennia BC.

Reign of Sargon I of Akkad (2335-2280)
-trade was limited to the internal boundaries
-temple located at the centre of economic activity
Babylonia (2000)
- people depositing gold were required to pay amounts as much as one sixtieth of the total deposited. -palaces and temple are known to have provided lending and issuing from the wealth they held -issuing seed-grain, with re-payment from the harvest.

(((These basic social agreements were documented in clay tablets, with an agreement on interest accrual. The habit of depositing and storing of wealth in temples continued at least until 209 B.C., as evidenced by Antioch having ransacked or pillaged the temple of Aine in Ecbatana (Media) of gold and silver)))

Clay tabs-

EGYPT-About the time of the 18th century BC amounts of gold were deposited within the boundaries of the temple buildings of Egypt for reasons of security INDIA- an instrument called Adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today GREECE -Ancient Grecian bankers were in the first case moneychangers and pawnbrokers, present in the marketplace or festival sites, changing coinage of foreign merchants into the local currency ROME

-during 325 BC. On account of being in debt, the Plebeians were required to borrow money. At that time newly appointed quinqueviri mensarii/LacusCurtius were commissioned to provide services to those that had security to provide in exchange for money from the public treasury - deposit bankers were known as “argentarius” and at a later time

------------------------------------------------------------------------------------------------------- Banking can be traced to medieval and early Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa.  2 Families dominated banking in 14th century in Florence.

Bardi family...
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