Fractional reserve banking and the issue of banknotes emerged in the 17th and 18th centuries.
A bank is a financial institution that accepts deposits from the public and creates a permintaan deposit while bersama-samaeously making loans.[1] Lending activities can be directly performed by the bank or indirectly through capital markets.
Because banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a sistim known as fractional reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimal capital requirements based on an international set of capital standars, the Basel Accords.
Banking in its kekinian sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of kredit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties - notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and the Rothschilds - have played a central role over many centuries. The oldest existing pengecer bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest existing merchant bank is Berenberg Bank (founded in 1590).
The concept of banking may have begun in the times of ancient Assyria and Babylonia with merchants offering loans of grain as collateral within a barter sistim. Lenders in ancient Greece and during the Roman Empire added two important innovations: they accepted deposits and changed money.[citation needed] Archaeology from this period in Iran, ancient China and India also shows evidence of money lending.
The present masa of 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. The Bardi and Peruzzi familyes dominated banking in 14th-century Florence, establishing branches in many other parts of Europe.[2] Giovanni di Bicci de' Medici setting one of the most famous Italian banks, the Medici Bank, in 1397.[3] The Republic of Genoa founded the earliest-known state deposit bank, Banco di San Giorgio (Bank of St. George), in 1407 at Genoa, Italy.[4]
