Banking refers to the business activity of safeguarding and lending money.http://www.economist.com/research/economics/searchActionTerms.cfm?query=banking Banking services include checking and savings accounts, credit and debit cards, and loans.https://www.bankofamerica.com/ http://www.hsbc.co.uk/1/2/ At its highest level, banking, through main national banks or central banks, issue currency, administer monetary policy, operate open markets and facilitate healthy business transactions.http://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm
Ancient Banking
Banking began in the temples of early civilizations.http://www.jstor.org/pss/2590789 The architecture and the social function of the temple provided the safest refuge of tangible wealth. By the second millenium BCE, banking had become commonplace in Babylonia, making written records of banking transactions necessary. The early bankers developed standards for banking that wound up becoming a part of the Code of Hammurabi. Back then, in the absence of coins and bills, people had to make do with agricultural crops and livestock as currency. Precious metals arrived into the picture later. Despite its limitations, ancient banking teemed with deposits, loans and even interest.http://people.brandeis.edu/~cecchett/Textbook%20inserts/A%20Brief%20History%20of%20Banking.htm
Medieval Banking
Modern banking traces its history to the cities of Florence, Genoa and Venice. The Italian bankers provided princes with loans to finance their luxuries and wars. International banking was born when the bankers started transacting with international traders. Italian family-owned banks extended loans to England for its 100 year war with France. Banks would fail when Edward III defaulted, but this did not end banking. Giovanni Medici would transform banking from a business hosted on marketplace tables into one hosted on respectable buildings.http://people.brandeis.edu/~cecchett/Textbook%20inserts/A%20Brief%20History%20of%20Banking.htm
Future Banking
This is Microsoft's vision of the future of banking back in 2008. A lady is on her way to a bank, but she is already transacting with the bank through her smartphone and stylus. The bank personnel knows a lot about her through their computers. Meanwhile, a man is provided auto loan information through his tablet computer. A loans officer transfers info from her smartphone to the tablet by a single stylus tap. Then another person, this time on the phone, appears into the scene through a video call.
Disclaimer
The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.
References
Fast Facts
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Fact:
In its basic definition, banking is the activity of safeguarding and lending money.
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Fact:
Banking services include checking and savings accounts, credit and debit cards, and loans.
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Central banking covers currency issuance and monetary policy administration.
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Temples served as the earliest banks.
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Banking is covered by the Code of Hammurabi
