Pioneers of bank
Holy priests hated Jews, and villainous Italians were the pioneers of banking. They made a lot of money from interest on loans, and they became more and more greedy.
Tempel was the first bank
18th century BCE: In ancient Babylonia and Egypt, temples were pre-eminent places to store valuables, for no one dared to rob the sacred buildings. Babylonian priests also lent money in the time of King Hammurabi (18th century BC). The Babylonians were the first with an actual bank. 5th century BC: The ancient Greeks were merchants and needed a solid banking system. Therefore, in the 5th century BC, Athenian businessmen. Their money to the local bank, where they received a guarantee certificate with which they could collect it at another bank. This way they did not have to lug around heavy money boxes that could easily be stolen. The Greek banks also lent money to their customers and exchanged foreign currency. When it comes to choosing the best broker you can check Low Spread Forex Brokers.
Jews practiced prohibited professions
Middle-Ages: The medieval Catholic Church did not consider the profession of money lender appropriate for a Christian. In the 12th century, the Pope forbade all Christians to charge interest, preventing them from earning money from banking. However, the European monarchs had to borrow a lot of money to build and wage war, so they instructed the Jews, who were not forbidden by the Church’s prohibition, to lend money and in return offered protection. Most crafts were forbidden to Jews, and by lending money they earned a living. Because of their banking activities, they were looked at even more with the neck by the Christian population.
The modern bank originated in Italy
14th century: With creative accounting, Italian merchants circumvented the ecclesiastical prohibition on interest. In the 14th and 15th centuries, Northern Italian merchants succeeded in taking over much of the Jewish banking activities. They were not allowed to charge interest, but the Italians circumvented this prohibition by describing the interest as ‘gift’ or ‘reward for risk’ in their accounts. In Genoa, Siena, and especially Florence, the benches sprang up like mushrooms. In Florence, the De ‘Medici family made a fortune in loans. This gave her the say in the city and was even allowed to supply a number of popes. The Italians’ financial empires are seen as the forerunners of modern banking.
Nationalization in the 17th century
17th century: In 1661 Stockholms Banco was the first bank in Europe to issue banknotes instead of coins. But the company issued more notes than it had in silver and copper and went bankrupt. The state intervened and took over the bank’s estate in 1668. The institution that emerged from this still exists and is today Sweden’s national bank.
9,000 US banks go bankrupt
1929: Black Thursday, as is known on October 24, 1929. On that day, stock prices on the stock exchange on Wall Street in New York took a dive. Hundreds of thousands of Americans had invested in stocks, often with borrowed money, and that seemed like a safe investment. But the bubble burst and the financial crisis that followed killed 9,000 US banks.
Global financial crisis
Until a few years ago, the international investment bank Lehman Brothers had $ 691 billion in assets and employed 26,000 people. But the bank owed its success to high-risk loans, and 2008 went wrong. The financial giant went bankrupt, and a global economic crisis was the result. European pension funds lost billions of euros. Lehman Brothers were the largest, but by no means the only, bank to collapse during this crisis, and its effects are still felt today.