Banks are very familiar to us in our daily lives, including daily deposits and withdrawals, and transfers. When was such a bank firstborn in the world? Let’s unravel the roots of the bank.
The oldest bank in the world “Monte dei Paschi di Siena Bank”
The oldest bank in the world is said to be the Banca Monte Dei Paschi di Siena (MPS) in Italy. The company was born in Siena in 1472. Since its founding, it has continued to grow and has supported the lives of the Italian people The main store is located at the back of Salimbeni Square. It is said to be the oldest building in the square and is also known as a historic building.
The oldest surviving bank, the Monte dei Paschi di Siena Bank, has a history of about 500 years. By the way, what are the roots of banks?
Get closer to the roots of the bank!
Banks have their roots in the ancient Babylonian dynasty of 3000 BC. In ancient Egypt, grain is said to have played the role of money. Therefore, they rented grain and livestock at the temple and kept people’s property.
It was in medieval Italy that banks developed into what they are today. The current word “Bank” was coined from the trading table of a merchant called “banco” in Italy.
At that time, trade-in spices and silk was flourishing. Bills of exchange were created to facilitate exchanges with remote areas, which led to further revitalization of trade, and merchants and bankers became active in Europe. It was also around this time that some merchants changed jobs to bankers.
It is said that the Industrial Revolution that took place in the 18th and 19th centuries helped individuals to strengthen themselves. Banks now need to serve their individuals as well.
Europe was in the red at the time, and banks were in charge of managing their money, doing everything from financing to remittances for the war. In addition to that, with the addition of services to individuals, it can be said that the business of banks has expanded significantly. You can see that the current state of banks is often linked to the history of Europe.
What are the roots of Japanese banks?
Speaking of Japanese banks, it is said that the roots of money changers in the Edo period. You may also see a money changer appearing in a historical drama. However, going back to the roots of lending money, it begins with the rise of the Nara period. At that time, the seeds were rented in the spring and the rice was collected at the time of harvest in the fall. At that time, it may have meant a thank-you to God, but in terms of lending and collecting. , it seems that the Nara period has its roots.
Later, borrowing appeared at the end of the Heian period, and during the Kamakura period, people called Dosou from temples and shrines were engaged in the lending and borrowing money and exchanging money. By the way, foreign exchange transactions at that time were used as a way for tokens to receive rice, etc. in big cities (Kamakura, Kyoto, etc.), and instead of cash, they used what is now called bills and checks. It means that the payment was made.
In Japan, the Meiji government’s policy of promoting the breeding industry has increased the movement to create companies, and in 1878, 153 banks were born. In addition, the Bank of Japan’s convertible banknotes will be issued in 1885 to unify the national currencies. Since then, it is said that it has gradually changed its shape to what the Bank of Japan should be today.
When I unraveled the roots of banks, I found that they have changed their shape according to people’s lives as the times change. Today, the financial industry is undergoing major changes, including the rise of FinTech. I would like to expect the development of new services and functions in the future.