This accounting and finance for bankers macmillan pdf needs additional citations for verification. A bank is a financial institution that accepts deposits from the public and creates credit.
Among many other things, the Code of Hammurabi from 1754 BC recorded interest-bearing loans. Banking began with the first prototype banks of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities and this system is known as a barter system. This began around 2000 BC in Assyria and Babylonia. The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre and north like Florence, Lucca, Siena, Venice and Genoa. Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries. The goldsmith paid interest on these deposits. The Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, meaning “table”, from Old High German banc, bank “bench, counter”. The definition of a bank varies from country to country. See the relevant country pages under for more information. Branch of Nepal Bank in Pokhara, Western Nepal.
The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. Large door to an old bank vault. Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers in the bank, and collecting cheques deposited to customers’ current accounts. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals.