THE HISTORY

OF BANKING
SYSTEM
WEEK 1 MODULE 1
 Learning Outcomes:

1 2 3 4 5
Trace the Trace the Describe the Discuss the State the
history of the history of the importance economic reasons why
Banking Philippine of banking significance of government
should regulate
system Banking system banks
and supervise
system
banks
2 Presentation title 20XX
 THE HISTORY OF BANKS
For as long as civilization has existed, banking has existed. In
fact, even before civilization existed, there were ‘bank-like’ systems. It is
nigh on impossible to cover the complete history of banks in such a
short piece, but we are going to give you a decent overview of how the
banks came to be.

EARLIEST BANKING SYSTEMS

It is impossible to say exactly when banking properly began.

There are evidences that it may have started to properly occur around
8000 BC, although these were not banking in the way that we see things
now. It was more record keeping of trades that were being made. There
are records of are people making trades and record their trades down in
a log.

3
 The first proper banks would
have developed in ancient
Mesopotamia. There was evidence
that there were temples and palaces
throughout Babylonia and other
cities which provided lending
activities. Although, a lot of this was
not in the form of financial lending. THE EARLIEST
Instead, banks (temples & palaces)
would lend out seeds and the like. ‘PROPER’ BANKS
The idea is that by lending out seeds,
farmers would have products that
they could work with. When it came
to the harvest, the farmers would
pay back their seed loan from the
harvest.
 BANKS DURING THE MEDIEVAL PERIOD
Banks really started to come into their own during
the medieval period. Most of these banks
were merchant banks, however. Again, this was a lot
about crop loan and for financing expeditions across
the silk routes. Some of the earliest forms of
brokering took place in these banks.

It is actually from around this time that bankruptcy

started to spring up. The earliest banks were in Italy.
Bankrupt comes from the word ‘banca rotta’ in
Italian. When a trade failed to deliver on their
promised route, then they would have been
declared ‘banca rotta’.

5 Presentation title 20XX

 Perhaps the biggest changes to the world of banking came in the 17th to
19th centuries, particularly in London. In fact, the way in which banks
work will be based completely around these banking concepts, i.e.
issuing bank debt, allowing deposits to be made into banks etc.

The first ‘proper’ bank could be said to be the Goldsmiths of London. It is now a
bank, but back then it was more a series of vaults which charged a fee for their

MODERN services. People would deposit their precious materials into these vaults, and they
would be able to collect them. Over time, Goldsmiths started to provide loans.

BANKING IN THE The first bank to offer banknotes was the Bank of England. Bank notes
were, initially, promissory notes. You would deposit cash into the bank
17TH TO 19TH and be offered a note to say that it was there. Over time, the bank started
to offer cheques, overdrafts, and traditional banking services.

CENTURIES
20TH CENTURY

It was in the 20th Century when banks started to pop up in the way we know them
properly. Post-World War II, banks started to lend money to countries as a whole,
and retail banking started to become a proper ‘thing’. In fact, a lot of the technology
that was developed throughout the 20th Century is still in use today, e.g. the ATM
systems and etc.
 HISTORY OF THE PHILIPPINE BANKING

Sep 20XX Jan 20XX May 20XX

Synergize scalable Coordinate e- Deploy strategy
e-commerce business applications networks with
compelling e-
business needs

Nov 20XX Mar 20XX

Disseminate Foster holistically
standardized superior
metrics methodologies
 B2B market • Develop winning strategies to keep ahead of the competition
• Capitalize on low-hanging fruit to identify a ballpark value
scenarios • Visualize customer directed convergence

Cloud-based • Iterative approaches to corporate strategy

opportunities • Establish a management framework from the inside

8 Presentation title 20XX

 How we get there
ROI Niche markets Supply chains
Envision multimedia-based Pursue scalable customer service Cultivate one-to-one customer
expertise and cross-media growth through sustainable strategies service with robust ideas
strategies
Engage top-line web services with Maximize timely deliverables for
Visualize quality intellectual cutting-edge deliverables real-time schemas
capital

Engage worldwide methodologies

with web-enabled technologies

9 Presentation title 20XX

Summary
At Contoso, we believe in giving 110%. By using our next-
generation data architecture, we help organizations virtually
manage agile workflows. We thrive because of our market
knowledge and great team behind our product. As our CEO
says, “Efficiencies will come from proactively transforming
how we do business.”

10
 IMPORTANCE OF BANKING SYSTEM

Sep 20XX Jan 20XX May 20XX

Synergize scalable Coordinate e- Deploy strategy
e-commerce business applications networks with
compelling e-
business needs

Nov 20XX Mar 20XX

Disseminate Foster holistically
standardized superior
metrics methodologies
 IMPORTANCE OF BANKING SYSTEM

Sep 20XX Jan 20XX May 20XX

Synergize scalable Coordinate e- Deploy strategy
e-commerce business applications networks with
compelling e-
business needs

Nov 20XX Mar 20XX

Disseminate Foster holistically
standardized superior
metrics methodologies
 IMPORTANCE OF BANKING SYSTEM

Sep 20XX Jan 20XX May 20XX

Synergize scalable Coordinate e- Deploy strategy
e-commerce business applications networks with
compelling e-
business needs

Nov 20XX Mar 20XX

Disseminate Foster holistically
standardized superior
metrics methodologies
 IMPORTANCE OF BANKING SYSTEM

Sep 20XX Jan 20XX May 20XX

Synergize scalable Coordinate e- Deploy strategy
e-commerce business applications networks with
compelling e-
business needs

Nov 20XX Mar 20XX

Disseminate Foster holistically
standardized superior
metrics methodologies
Governments regulate and supervise banks for several important reasons:
Thank you!