Presentation on the essence of the bank with the position of its historical development
Category: Concept of the Bank and the Banking System
The history of ancient times did not leave enough complete information about when the banks have, what operations they perform, which was the driving force behind their development. Now save the details of the first money of ancient peoples (shells, furs, gold bullion coins of the primitive), but not about banks. In other words, modern history has accumulated considerable material evidence of ancient currency, but gave no answer to that, what if this was the role of simple lending institutions. Moreover, the period of the banks is not defined in the economic literature is not clear their true nature.
First banks, according to some scholars, have in a manufactory stage of capitalism, and appeared primarily in certain Italian cities (Venice, Genoa), in the XIV and XV centuries. In their view, the bank as a special institution of commodity production did not arise in connection with the development of commodity-money relations in the early stages of the commodity economy, namely that their time when needed was a network of special institutions that regulate currency circulation and produced in larger scale credit operation. The Bank has just appeared on the stage of the loan, when, without his broad support could not have been functioning capitalist enterprises. Not by chance the bank is characterized solely as a phenomenon of the capitalist economy.
Another part of the experts believe that banks have in the earlier period — under feudalism. They note that even in ancient and feudal economy there was a need for the function of banks as intermediaries in the payments.
Thus, the prevailing view about the period of the emergence of banks diverge not on one or two decades, a span of almost two thousand years. Hence, the subject matter of the first banks is not so much in identifying a historical date that is acceptable to various parties, although economics is also not a formal issue, but in determining what is considered by the bank.
Unfortunately, the word «bank» to us, not only does not clarify his essence, and creates additional difficulties in the truth of our judgments and perceptions about the first credit institutions. The word «bank» derives from the Italian «banco», meaning «table». These bank-tables were set in squares, which hosted a lively trade in goods. It was conducted using a variety of coins struck both by states and cities, and even individuals. Uniform system of coins did not exist. When buying and selling coins met various shapes of different denominations, often below par value, which was shown to them. Under these conditions, it took experts who would know and understand a set of circulating coins, could assess and provide advice on their exchange. These experts, money-changers are usually located with its own special tables for markets, where the trade. If we consider that in X. Italy was the center of world trade, where goods and money flowed in different countries, it becomes clear why the bankers were indispensable parties in commercial transactions, and their bank-tables are becoming more common. The concept of the bank, anchored in our understanding, identified with the exchangers and their special table in ancient Greece. Bankers were in ancient Rome, where there were mensarii (from the Latin word «mensa» — table), engaged in currency exchange, as well as certain other monetary transactions. It turns out that the first banks appeared as if on the basis of the case are exchange — an exchange of money for different cities and countries.
This kind of identification of the nature of the bank with operations in foreign exchange veils the true origin of the first credit institutions and, naturally, can not be the basis of our understanding of its essence. By itself, the exchange operation is a reflection of the commodity exchange, there is no more credit platform, which determines the main direction in the activities of banks in the later period. But it’s not just that. Purely semantic interpretation of the word «bank» leads us to conclude that the origin of the Bank applies only to this period of development of the economy, when money began to perform the function of world money. It turns out that at an earlier stage, when the money is accessed only in the domestic market, the banks did not exist. However, it is known that the operation of Intact, adhered to the internal circulation is more ancient and that it largely takes us closer to disclosing the contents of credit institutions.
According to historians, even 2300 years BC there were trading companies, which together with the implementation of their tasks were given as loans. Mention of the first stand-alone credit related to VI. BC In ancient Babylon practiced deposit operations: receiving deposits and paying interest on it. These same steps in the IV. BC practiced in Greece. It is noteworthy that in addition to taking deposits to the ancient Greeks for a certain fee to exchange money.
Who carried out these first bank transactions? According to historians, they were as individuals, as well as some church institutions that have focused significant amounts of money. Temples have been a reliable place to store valuables. Thieves are treated with reverence to the altar, not robbing them. Deposits are guaranteed inviolability of the respectful attitude to religion, made famous Greek temples (Delphi, Delian, Samos, Ephesus), which became both a kind of banking institutions. In the Temple of Artemis at Ephesus, concentrated deposits of banded coast and in the temple of Apollo at Delphi were concentrated free cash flow throughout the European Greece.
The first bankers realized that accumulate huge amounts of wealth, lying motionless, unproductive, as they could be used to receive a substantial benefit, paying cash for temporary use or self-opening trade and craft enterprises. A pledge it usually acted ships and goods, and in some cases — at home, valuables and even people (slaves).
Bank loans was accompanied by levying high interest rate which reached 36% per annum. However, this rate could increase to 40% per annum, if the loan was granted for a short time. The penalty for excessively high percentage was assumed only if its size reached 60% per annum.
Together with the lending operations of the ancient banks gradually have been developed and calculations for servicing investors. Calculations were performed using the so-called transfer, ie transfer funds from one table (accounts) to another. Each depositor in the bank had its own table with the symbol of his name. If customers, as they are now called, returned to save their spare money in the bank, they no longer had to personally pay for whatever amount, all payments for them served as a banker, whose contributions were, and table (from the modern understanding of) with the name of the depositor. Money from one depositor tables were transferred to another table, forming the simplest forms of cashless payments. Characteristically, that you must first was a private oral order customer about the transfer of funds, but then there were written orders (the prototype of modern checks), which facilitates and accelerates the mutual payments.
Facilities that are created by banks could not attract the attention of business people. Gradually, bank customers expanded. Banks, in turn, went to the works of clients on drafting contracts between clients, began to act as intermediaries in commercial transactions. For ease of calculation, even old jars produced bank notes (hudu — «Hood») that are accessed on a par with primary money. According to one of the authors, «can be considered quite significant by the fact that although the bill transactions ancient bankers not involved, yet there were letters of credit from applying for a payment to the banker.»
All this evidence does not confirm the perceived view that the first banks appeared in a manufactory stage of capitalism in the form of banking houses.
Of course, it would be unfair to assume that the operations of an ancient commodity-money circulation demonstrate the functioning of the bank. The process of release and accumulation of their own and others’ money (receipt of money deposited as the oldest credit transaction) and provision for temporary use are characteristic of all forms of credit, including personal loan, arising, apparently, along with the development of the function of money as a means of payment, ie Long before becoming a party to the credit relationship of the creditor to the bank. The presence of the lender and the borrower, therefore, — it is far from the birth of the bank, but its premise.
Under what conditions the possibility of converting to a bank lender becomes apparent? Where is the dividing line between the personal form of the loan, and then the form of usury and bank credit, when one party credit relations is not a single individual (for example, the lender), and the lending institution?
In reference publications Bank is uniquely characterized as «a major lending institution.» The case, therefore, to the extent of the credit system and a set of operations that are executed by the lender servicing their clients. Pawnbroker ceases to be a moneylender, as credit operations carried out by them (in their entirety), into a system. Credit based on their functional purposes, ceases to satisfy a purely consumer needs of the borrower and is issued to conduct business transactions. Along with the commission of credit transactions lender begins on the order of their clients to perform calculations and other operations. The Bank, therefore, — it is such a stage of development of the monetary economy in which credit, cash and settlement operations have become concentrated in their entirety in a single center. It can therefore be assumed that the first banks emerged long before the manufactory stage of capitalism, during the formation of the state during brisk development of commodity exchange, monetary and credit relations. This kind of relationship, as evidenced by history, were already in the slave society.
In ancient Rome, there were primary rules of banking and credit law. According to these standards in the III. BC Roman bankers, specializing in business of exchange, they are no longer permitted to conduct credit operations. Argentarii, specializing in the credit business, got an opportunity on the basis of house payments provide loans to their customers. First Banking Houses do not just serve, and often not so much the consumer needs. The range of credit transactions first bank was quite extensive. According to historians, ancient Babylon, banks provide not only loans but also bought and sold land, performed a number of other operations.
Sign the bank is the fact that the loan in its basis is paid. Loan interest not only covers the cost of the banking house, but also makes productive use of resources by the borrower, he had received for temporary use.