Somethings About Commercial Bank, You Have To Know(II)

The History about Commercial Bank

The original use of the concept of “commercial bank” is because such banks only undertake “commercial” short-term lending business in the early stages of development. Generally,Steel Sheet the term of the loan does not exceed one year, and the objects of the loan are usually businessmen and the traders of import and export. They call these banks, which mainly absorb short-term deposits and issue short-term commercial loans as their basic business, commercial banks.

Banks are one of the most important financial institutions in the economy. The primitive state of Western banking can be traced back to ancient Babylon B.C. and the period of ancient civilization. According to the Encyclopedia Britannica, as early as the 6th century BC, there was a bank in Babylon.

Stone tablets found by archaeologists in the Great Arab Desert prove that the monasteries of Babylon had lent money to the outside before 2000 B.C. and that the money was given to the monasteries by means of a document similar to a note issued by the debtor, which could be transferred. In the 4th century BC, Greek monasteries, public organizations and private businesses also engaged in various financial activities. However, such activities are limited to the nature of the currency exchange industry, and lending business has not yet been conducted. Rome also had institutions similar to Greek banking in 200 B.C., but it made progress compared with Greek banking.

Leave a Reply

Your email address will not be published. Required fields are marked *