Evolution of Money and Bank

Topics: Bank, Financial services, Finance Pages: 2 (711 words) Published: May 21, 2013
As a public enterprise banking made its first beginning around the middle of 12th century in Italy and the bank of Venice. Founded in 1157 was the first public banking institution.

Following if were established Bank of Barcelona and Bank of Genoa in 1401 and 1407 respectively. The bank of Venice and the bank of Genoa continued to operate until the eighteenth century. With the expansion of commercial activities in northern Europe, there sprung up a number of private banking houses in Europe and slowly it spread throughout the world. In Nepal, modern banking starts form the establishment of Nepal Bank Ltd.

In Nepal development of baking is relatively recent. The record of banking system in Nepal gives detail account of mixture of slow and steady evolution in the financial and global economy of Nepalese life. In involvement of landlord, rich merchants shopkeepers and other individual money holder has acted as fence to institutional credit in presence of unorganized money market. In Nepalese chronicle it was recorded that the new era known as Nepal Sambat was introduced by Shankhadhar, a sudra merchant of Kantipur in 879 or 880 A.D after having paid all the outstanding debts in the country. This shows the basic of money lending practice in ancient Nepal. Towards the end of 8th century, Gunkamdev had borrowed money to rebuild the Kathmandu valley. Mall regime was an evidence of banking activities. It is beloved that financing for foreign trade with Tibet became quite popular during the regime of malla. However the absence of regulatory measures money lenders were known to have charged High rate of interest and extra on loans.

When "Tejarath adda "established during the year 1877 A.D. it played viral role in baking system as regulatory and promotional organ. It helped the general public to provide credit facilities at a very low rate of 5% specially on the collateral of gold and silver. Hence the establishment of Tejarath adda could be regard As pioneer...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • evolution of money Essay
  • Evolution of Banks in Pakistan Essay
  • Money: Bank and Funds Essay
  • How Do Banks Make Money> Essay
  • How the Commercial Banks Create Money Essay
  • Evolution of Money Essay
  • Banks Essay
  • How Banks Make Money Research Paper

Become a StudyMode Member

Sign Up - It's Free