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In modern life, banks are one of the most important institutions that drive the economic wheel.
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from money storage, lending, to digital transactions, the existence of banks has not been separated from human life. But have you ever wondered who was the first to come up with this idea? How did the concept of the first bank in the world was born and developed? In this video, we will experience a long and in-depth history of the first bank in the world, starting from ancient Mesopotamia to modern banking in Europe.
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A journey full of innovation, revolution, and a great impact on human civilization. Welcome to History Herald The word bank comes from the Italian language "banca" which means table or bench. In the 12th century in Italy, merchants often made transactions on wooden tables in the market. If a merchant was bankrupt, their tables were destroyed as a symbol of failure.
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Here the term bankarota was born, which means a broken table. Cikal bakal kata bangkrut in various languages. Bank pertama di dunia, Mesopotamia dan peradaban kuno. We started this journey in Mesopotamia, land between two rivers Tigris dan Eufrat. Around 2000 BC, in big cities like Babylonia, an institution emerged that became the Cikal Bakal banking system.
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However, the banks at that time were much different from what we know today. Large castles like the Marduk Castle are not only religious centers but also economic centers. People store the harvest, precious metals, even animal feed in the castle. As a replacement, the priest who manages the castle will record this transaction in the land of sight. They also lend to farmers and traders with the flower that has been determined.
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What's interesting is the law of Hammurabi, one of the oldest codes of law in the world, also complies with the rules of loans and flowers. For example, if a farmer lends a seed and fails to harvest due to a flood, he is not required to return his loan. This shows that ancient civilization already understands the importance of regulation in the financial system.
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Not only in Mesopotamia, the system also developed in ancient Egypt and Greece. In Egypt, the priests recorded gold and silver deposits in the papyrus gulungan. Meanwhile in Greece, the practice of trapezius, namely the service of money exchange by merchants, developed in the Roman Empire.
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Continue to around the 1st century BC, we find the development of the financial system in the Roman Empire. Here the Argentarians or the Romani bank began to provide more structured services.
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They not only save money, but also lend loans to civilians, traders, even the government. The Argentarians recorded all their transactions in a roll of paper or a tablet. They also introduced a simple check system, where the customers can provide written instructions to pay others for their savings. The first bank in Europe
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Bank of St. George from the ancient world we jumped to Europe in the 15th century where banking began to develop rapidly here we meet with institutions that are often referred to as the first modern bank in Europe, namely the Bank of San Giorgio or Bank of St. George
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which was established in 1407 in Genoa, Italy. The Bank of St. George was formed by the government of Genoa to manage state debt and support maritime trading activities. Genoa as one of the largest trading cities at that time, needed a stable financial system to support long-distance trade and expedition. This bank also introduced the concept of stock.
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where shareholders also owned some of the banks. Even some researchers believe that Christopher Columbus got financial support from this institution for his exploration journey to the new world. This shows how much the influence of the Bank of St. George on the European economy at that time. Central Bank First, Bank of Amsterdam, and Bank of England
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Then in 1609, Bank of Amsterdam was founded in the Netherlands. This bank is often considered the world's first central bank. With the growing global trade, Bank of Amsterdam provides secure money storage services and efficient payment systems. They also offer financial stability, which is very important in international trade.
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Next in 1694, the Bank of England was established in England. This bank was established to help the British government to finance war. One of the important innovations of the Bank of England is the introduction of cash, which replaces the use of cash in daily transactions. Evolution towards modern banking
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Entering the 20th century, banking has undergone a major evolution with the emergence of technology, from the first ATM machines in the 1960s to digital banking like the one we use today. Banking systems continue to develop to meet the needs of the modern society.
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From ancient caves in Mesopotamia to digital banks in the modern era, banking history is proof of how humans continue to innovate to manage the economy. The simple concept of saving and borrowing money has developed into a complex global financial system. Banks are not only a place to save money, but also a foundation for economic development, international trade, and financial stability.
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But behind all that, this system also carries great challenges, such as the economic situation and the world-shattering financial crisis. Banking history teaches us that innovation always has two sides. On the one hand, it brings progress, but on the other hand, it requires strict regulation and balance.
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So when you see a debit card or access the bank application on your phone, remember that all of that is the result of thousands of years of human civilization. A journey that started from ancient temples to grand buildings in the big city. Thank you for watching, see you in the next video.
