A banking system is an economic institution comprising banks and related financial intermediaries that accept deposits, extend credit, and facilitate the transfer and management of money within an economy. Banking traces its institutional roots to ancient moneylending and the merchant banking houses of medieval and Renaissance Europe, evolving into modern central banking, commercial banking and, in some traditions, interest-free institutions such as Islamic banking that operate under religious prohibitions on interest. Banking systems perform the core economic function of channeling savings into productive investment, and their stability is closely tied to broader economic stability, as demonstrated by banking crises and bank runs throughout modern economic history.
Facts
Institution Type Emergence Era Connections
Associated With
A central bank sits at the apex of a country banking system, regulating and backstopping the commercial banks beneath it.
Insurance developed historically alongside and often within banking institutions, both being mechanisms of the same emerging financial system for managing risk and capital.
In the Other Atlases
Originated In
Also in Geography Atlas: where this subject originated.
Source Bank (Wikipedia)Article textQuote, Article text
Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy
Sources
1. Bank (Wikipedia)
English Wikipedia, intro text
Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy but, in many ways, functioned as a continuation of ideas and concepts of credit and lending that have their roots in the ancient world.
Lead, institution-type-category financial-institution
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while making loans.
View the SourceReader Challenges (0)
No disputes yet. Spotted an error or a better source? Open the first one.
Sign in to dispute this or suggest a correction.