Manual on Concurrent Audit of Banks (2023 edition)
PART I Understanding the Banking Business and Its Legal Framework
Origin of Banks
- Banking was carried on in ancient Babylon, Egypt and Greece.
- Temples are the places where they are served deposit of money in the initial stages.
- In the year 210 BC, at Rome an ordinance was issued to set aside a place of money changers.
- The work “Bank” has come from Italian word “Banco”.
- Money changers of Italy did their business in the street on a bench and that bench in Italian word is called as “Banco”.
- ‘Banco di Rialto’ was first set up in Venice in the year 1587.
- ‘Banco di Rialto’ has accepted deposits from the depositors and allow them to use and write cheques to withdraw the money.
- Later on in the year 1619, ‘Banco Del Giro’ took over ‘Banco di Rialto”.
- ‘Banco Del Giro’ was set up in the year 1609 at Amsterdam.
- In the year 1694, ‘Bank of England’ was set up. After setting up of ‘Bank of England’ lot of countries have started to set up Central Banks for their respective countries.
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