We all know about banks. Bank is a place where we save our earnings, money etc.. Banks are more popular all over the world. If we do not have any banks, we cannot keep our money safe. Isn't it? There is a chance of losing money. Banks are playing role for illegal purposes rather than legal purposes. Without banks, no illegal issues happen. What is the history of banks? Who is the creator of banks? How far we using banks? What happens if we do not have banks to keep our money safe? I think all of you want to know answers to these questions. We will discuss all these questions in this blog.
History of Banks:-
The history of banks starts from 4000 years ago by Greece and Rome. The people of ancient were very innocent. The bank does not have more workers like today.
In ancient days, we find the poor and rich people. The poor people did not have proper food to eat. They lack food.
At that time, the people who were rich lent grains to poor people. With the help of rich poor, they got proper food. The grains taken by the poor are not free. The people who give something to others are the lenders.
The poor people should pay back more than they received. The people who took help will get some time to pay back.
This will continue for many years. The lender and the poor people were happy for the profits. After many years, they also started lending other things like spices, wheat grains etc..
In ancient Greek, we evolved gold coins from grains. That means, the lenders started giving gold coins instead of grains. The people got an increasing number of money from these lenders.
It is a power evolving of big companies. These companies started lending more money to people. Slowly, these companies came up with the name of bank.
Even Rome started giving money to the needy people. Greece and Rome became more popular in lending money.
Furthermore, Greece and Rome came up with the idea of storing money. In less time, they started storing the money. This made people start saving their money in the banks. This became more useful for the people.
In ancient days, saving kept their money safe in the banks. If anyone want to plan a trip, people used to keep their money in banks. So that they can keep their money safe.
As history moving, the banks are getting increased all over the world. These banks became more important to people.
Renaissance of Ancient Greece and Rome:-
In the 15th and 16th century, Europe got up with a problem of Renaissance. During this Renaissance, Italy became the center of trade in Europe.
At this time, people from many countries started buying and selling things. Although they are from different countries, they bought it with different currencies.
In Italy, there was a city with the name Pisa. We can see the famous leaning tower in Pisa, Italy. People all over the world bought products with more than seven different currencies.
It became tough and a mess for dealer. As they are getting currencies, it took more hours to exchange those coins.
Today, we continue this process of lending the money and keeping money safe. This process that we are following now is from 4000 years ago. The money that we pay back with extra money is 'INTEREST'.
It is essential to know how banks run and also the history.
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