Evolution and Growth of Bank

When the word bank is used it is meant for commercial bank, actually word was originated from Germany though some people think it to be from French and Italy. Before 1960 there was no such word as banking. However, in the temple of Babylon the practice of safeguarding and saving flourished as early as 2000 B.C. Chanakya in his Arthsastra (Economics) written in 300 B.C. mentioned about the existence of powerful guilds of merchant’s bankers received deposits, advance loans and Hundies ( Letter of transfer).
The establishment of the first modern banking institution called “The bank of Venice” in 1157 A.D. with a view of finance the monarch in wars was a landmark in the history of banking. The Bank of Barcelona, The bank of Spain and the Bank of Genoa were established in the years 1401 A.D.,1404 A.D. and 1407 A.D. respectively. Subsequently, the establishment of “The bank of England in 1694 A.D. as the first central bank contributed a great deal to the history of banking. Many countries quickly followed England and established a central bank of their own. As the central bank lacked a direct interaction with the mass, every country felt a pressuring need of commercial bank. In this way number of commercial bank get established and has came to present stage.