Although his remarks were addressed to minority-owned institutions, they are very applicable to banks of all sizes, particularly community banks, and worthy of consideration by bank boards of directors.
History of banking Among many other things, the Code of Hammurabi from 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 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empirelenders based in temples made loans and added two important innovations: Archaeology from this period in ancient China and India also shows evidence of money lending activity.
The origins of modern banking can be traced to medieval and early Renaissance Italyto the rich cities in the centre and north like FlorenceLuccaSienaVenice and Genoa. The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe.
Georgewas founded in at GenoaItaly. Merchants started to store their gold with the goldsmiths of Londonwho possessed private vaults, and charged a fee for that service.
In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee ; these receipts could not be assigned, only the original depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on behalf of the depositorwhich led to the development of modern banking practices; promissory notes which evolved into banknotes were issued for money deposited as a loan to the goldsmith.
Since the promissory notes were payable on demand, and the advances loans to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional reserve banking. The promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay,  allowing goldsmiths to advance loans with little risk of default.
The Bank of England was the first to begin the permanent issue of banknotesin The Rothschilds pioneered international finance on a large scale, financing the purchase of the Suez canal for the British government.
A BC one-third stater electrum coin from Lydiawhere gold and silver coins were used for the first time Etymology[ edit ] The word bank was borrowed in Middle English from Middle French banque, from Old Italian banco, meaning "table", from Old High German banc, bank "bench, counter".
Benches were used as makeshift desks or exchange counters during the Renaissance by Jewish  Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. See the relevant country pages under for more information.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instrumentsincluding chequesand this Act contains a statutory definition of the term banker: Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated.
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.
When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions: This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.
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 depositsand by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loansand by investing in marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals.The Occupy movement was an international progressive, socio-political movement against social and economic inequality and the lack of "real democracy" around the rutadeltambor.com aimed primarily to advance social and economic justice and new forms of democracy.
The movement had many different scopes; local groups often had different focuses, but among the movement's prime concerns were how large. The OCC’s Strategic Plan, Fiscal Years – i.
Message From the Comptroller I am proud to present our Strategic Plan for Fiscal Years to a changing economic and business environment, and it will always play a crucial role in maintaining our nation's economic security.
Comptroller's Handbook: Floor Plan Lending. Comptroller's Handbook: Floor Plan Lending. Skip navigation. Ensuring a Safe and Sound Federal Banking System for All Americans Doing Business with the OCC.
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Guidelines For Requesting Approval For A Strategic Plan Under The Community Reinvestment Act The OCC now supervises federal savings associations (FSA). References to regulatory citations, reporting requirements, or other guidance for FSAs contained in this document may have changed. A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital rutadeltambor.com to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold.
The new guidelines and sample notes are effective for subordinated debt issued on or after April 3, The OCC reminds all banks that they are responsible for complying with the applicable licensing rules; the regulatory capital rules, if applicable; and all other applicable laws and regulations.