Bank origin

The term bank, originated from Banca, Italy, was originally intended to be benches and chairs, and was the earliest business tool for money changers in the market. English is converted to Bank, which means a cabinet for saving money. In China, the reason why there is a "bank" is related to the history of China's economic development. Silver has been one of the main monetary materials in our history. "Silver" often refers to money, while "row" is the title for large commercial institutions. The big financial institution that deals with silver money is called a bank. It was first seen in the new book of Zizheng, written by Hong Renxuan of the Taiping Heavenly Kingdom. 

Bank origin

It is generally believed that the earliest bank was the bank established in Venice in Italy in 1407. Since then, the Netherlands has set up banks in Amsterdam, Germany in Hamburg, and the United Kingdom in London. From the end of the eighteenth century to the beginning of the nineteenth century, banks were generally developed. In the 17th century, some civilians became wealthy businessmen through business. For the sake of safety, they kept the money in the king's vault. It should be noted here that there is no banknote at that time. The so-called saving means that gold is stored. Charles I Charles I Atlas Because at that time the "Free coinage" system was implemented, anyone could take the gold nuggets into the mint and cast them into gold coins, so the mint allowed customers to store gold. But unfortunately, these businessmen did not realize that the mint was a king. If the king wanted to use the gold in the mint, it could not be stopped. In 1638, the king of England was Charles I. He broke out with the Scottish aristocracy. In order to raise military expenses, he requisitioned the gold of the civilians in the mint and loaned it to the king. The picture below is Charles I. Later, in 1649, he was chopped by Cromwell. This is the famous British bourgeois revolution. For details, please refer to the British History Notes (4). Although the gold that was requisitioned was eventually returned to the original owner, the merchants felt that the mint was no longer safe. So they saved the money to Goldsmith. The goldsmith opened a certificate for the person who saved the money, and with this certificate, he can take out the gold. Soon, the merchants discovered that when they need money, they don’t need to take out gold. Just give the gold certificate to the other party. Later, the goldsmith suddenly realized that the original certificate he had opened had the effect of money! They could not resist the temptation and began to open "fake certificates." But the magic is that as long as all customers are not taking gold on the same day, the "false certificate" is equivalent to the "true certificate." This is the origin of the “reserve system” in modern banks and the origin of the “currency creation” mechanism. The banking system can amplify the amount of credit money, which cannot be achieved by physical currency. At this time, at the end of the 1760s, modern banks were born at that time. history The term bank is derived from the Italian Banca, meaning bench, used by early bankers when trading on the market. English is converted into a bank, which means a cabinet for storing money. The early bankers were called "people sitting on a bench." Banks are the product of the development of commodity currency economy to a certain stage. Its production is roughly divided into three phases: Agricultural Bank of China Agricultural Bank of China Atlas The first stage: the currency exchange industry and the exchangers appeared. The second stage: the increase in the currency custody and collection and payment business has evolved from the currency exchange industry to the currency business. The third stage: concurrently engaged in currency custody, collection and payment, settlement, lending, etc., when the currency exchange industry developed into the banking industry. The emergence and development of banks is linked to the development of the currency commodity economy. The currency exchange industry of the former capitalist society is the basis for the formation of the banking industry. At the beginning, the currency exchange industry only operated the coin exchange business, and later on behalf of merchants to keep money, cash and so on. In this way, the exchange of merchants gradually gathered a large amount of money. When the money changer engages in the lending business, the currency exchange industry develops into the banking industry. The earliest banking industry originated from the currency exchange industry in ancient Western Europe. Initially, the money changer only exchanged money for merchants. Later, it developed to keep money for merchants, collect cash, settle settlements and remittances, but not pay interest, and collect custodian fees and handling fees. With the development of industry and commerce, the business of money changers has further developed, and they have gathered a lot of money in their hands. ICBC Industrial and Commercial Bank of China Atlas In order to obtain more profits and use the money in the hands of the money to make loans to obtain interest, the money exchange industry has developed into a bank. In the Babylonian Temple in 2000 BC and the Greek temple in 500 BC, there were already institutions that operated gold and silver, collected interest, and issued loans. Modern banks were born in medieval Italy, and because of its special geographical location, it became the trading center of the time. In 1580, the Bank of Venice was established, which was the earliest bank in the world. Subsequently, other cities in Italy and some cities in Germany and the Netherlands also established banks. In China, the middle of the Ming Dynasty formed a bank with a bank nature, and the ticket number appeared in the Qing Dynasty. The first domestic bank using the bank name was “China Merchants Bank”, which was established on May 27, 1897. The earliest National Bank was the “Dominion Bank” founded in 1905, later called “Daqing Bank”, 1911 After the Revolution of 1911, Daqing Bank was reorganized as a “Bank of China” and it has been in use ever since. The earliest bank in modern times was the Venetian bank built in Italy in 1580. Since then, in 1593 in Milan, in 1609 in Amsterdam, in 1621 in Nuremberg, in 1629 in Hamburg and other cities have also established banks. At that time, the main target of these banks was the government, which was highly profitable and could not meet the requirements of capitalist industrial and commercial development. The first emerging stock bank organized according to the principles of capitalism was the Bank of England established in 1694. By the end of the 18th century and the beginning of the 19th century, large-scale joint-stock banks were established and became the main form of capitalist banks. With the further development of the credit economy and the continuous strengthening of the state's intervention in social and economic life, the objective requirements for establishing a central bank have arisen. The Bank of England, reorganized in 1844, can be regarded as the originator of the central bank of capitalist countries. In the latter half of the 19th century, Western countries have successively established central banks. Early banks were mainly engaged in business and industrial deposits, short-term mortgages and discounts. The business of Western banks has expanded into securities investment, gold trading, medium and long-term loans, leasing, trust, insurance, consulting, information services and electronic computer services. The banking structure of modern western countries is very complicated, mainly including: government banks, government-business joint banks, private banks; stock banks, wholly-owned banks; national banks, local banks; versatile banks, professional banks; corporate banks, mutual aid Cooperative banks, etc. By function, it can be divided into central banks, commercial banks, investment banks, savings banks and other professional credit institutions. They constitute a modern banking system with the central bank as the center, the stock commercial banks as the main body, and various types of banks coexisting. Since the 20th century, with the rapid development of international trade and international finance, a number of world-wide or regional banking organizations have been established around the world, such as the Bank for International Settlements established in 1930 and the International Bank for Reconstruction and Development established in 1945. (The World Bank), the International Finance Corporation established in 1956, the African Development Bank, established in 1964, and the Asian Development Bank, established in 1966, have played a role in transnational borders and in a wider range of fields. development of China's banking industry assets and after-tax profits have increased significantly year by year. In 2011, the profits realized by the Chinese banking industry accounted for nearly one-third of the total profits of the global banking industry. China's banking industry has developed rapidly, but with interest rate liberalization accelerating, internal and external competition intensifying, and profit growth slowing down, bank finance [2] institutions must make corresponding strategic adjustments in business structure, resource allocation, and regional distribution. With the increasing competition in the banking industry, banking financial institutions are paying more and more attention to the tracking research of the industry development environment and market demand, especially the in-depth study of the banking business development environment and customer demand trends. Because of this, a large number of outstanding domestic banking institutions have emerged rapidly, gradually forming their own business characteristics and becoming the industry leader or rookie！