CHAPTER I INTRODUCTION
1.1 INTRODUCTION TO THE TOPIC
Banking industry has stood as the most vulnerable yet the most profitable sector in Nepalese economy. The banking sector is prospering with much lesser difficulty in spite of increasing economic downturn and political instability in the nation. The clear picture is reflected in Nepal stock exchange; where 90% of stock traded is that of financial sector of which majority shares are held by commercial banks. With more number of commercial banks catering to the same market, it has given rise to the intense competition. So far, there are 31 commercial banks, 87 development banks, 79 finance companies, 21 micro-finance development banks, 16 saving and credit cooperatives and 38 NGO (financial
…show more content…
It is closely related to the history of money. The banking industry that we have at present is the outcome of a series of stepwise developments that have occurred in the process of its evolution. The History of Banking begins with the first prototype banks of merchants of the ancient world that made grain loans to farmers and traders carrying goods between cities; recorded as having occurred at about 2000 BC within the areas of Assyria and Babylonia. Later on, in ancient Greece and during the Roman Empire, lenders based in temples made loans and added two important innovations: the accepting of deposits and the changing of money. Archaeology from this period in ancient China and India shows the existence also of money lending activity. In England, banking and its origin can be started with goldsmith who adept the valuable thing of the public for the safe keeping at certain commission (interest) and to be returned to those, the depositor wished. According to Crowther, modern Banking has three ancestors- The Merchant, The Goldsmith and The Money Lender. As a public enterprise, banking made its first beginning around the twelfth century in Italy and the “Bank of Venice”, founded in 1175 A.D. was the first the public banking institution. Following it, “Bank of Barcelona” and “Bank of Genoa” were
The bank that we have chosen is Public Bank that is located in Ayer Keroh area. In Melaka, the area that the bank is located in Ayer Keroh is considered as the industrial area and also housing area which is not bad at all as it could benefits not only the residents but also the workers that are working in the factories nearby as well. The bank is located in between shops, restaurants and some car services shops as well. There are a lot of parking spaces available almost all the time. The bank is also located near to a main road where the road is also known as “Lebuh Ayer Keroh” (the highway of Ayer Keroh) by the locals that will have a lot of cars passing as this is the road that the
22. What was the banking family that became prominent in the Hansa and then in all of Europe?
During the twenty years it was in place the First Bank did change the economic downturn of the country after the war. The First Bank had branches in eight influential port cities and had a wide geographic existence. It influenced the lending policies of the state banks’ lending practices. The First Bank was like the state banks in that it made business loans, accepted deposits, and issued notes that circulated as currency and were convertible into gold or silver. But it differed from the state banks because its
The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.
Lending institutions have been around since the late 1700’s. Banks are establishments that are authorized by the government to accept deposits, pay interest on deposits, clear checks, make loans, act as an intermediary in financial transactions and provide other financial services to customers.
Banks play a huge role in the United States financial system today, but not many people know how banks became a thing in our country. The bank of the United States (First Bank in the U.S.) was established in 1791 in Philadelphia. It was created as a repository for federal funds, Alexander Hamilton proposed the idea of a national bank while Thomas Jefferson was against it, and in 1811 the bank lost its charter. There different thought on the first central bank in the U.S., and although it lost its charter man historians view it as a success.
Banks have been around since hard money came to be. This was in the Ancient Empires of Greece, Egypt and Rome. However, banks at that time weren’t as the ones we know today because first, banks were only used by wealthy people. Then the term banks comes from those wealthy people storing their coins in their temples where they trusted the noble priests that lived there.
Alexander Hamilton proposed using a banking system in America in 1781 after seeing how beneficial they were in other nations for advancing trade. In 1791, First Bank of the United States became the first commercial bank of the United States in Philadelphia, Pennsylvania. By the 1900’s, there were almost 170 banks per every million people in the United States, but because of this, there was a lot of debate about banking and the regulations needed and the fears that people had about the amount of control it was giving the government. This paper will be starting from the Great Depression and talk its way into the current situation of the United States banking regulations and why there is a debate on if there should be more or fewer regulations on banking.
The Medici bank was the most famous Italian bank and it was accepted by Giovanni Medici in 1397. The oldest bank is the Monte Dei Paschi Di Siena; it has been running since 1472 in Italy. Money lending started from Ancient China and India. The Bardi and Peruzzi families accepted branches in parts of Europe. “The development of banking spread from northern Italy throughout the Holy Roman Empire, and in the 15th and 16th century to northern Europe.
The Bank of United States has a profound history indeed. The bank was established in 1791 to act as a storae place for federal funds as well as the government’s monetary agent. This bank was initially proposed by Alexander Hamilton and was granted a twenty-year charter by Congress. This would not go over very well with the Jeffersonians due to the fact they believed the bank represented dominance of mercantile over agrarian interest and unconstitutional use of federal power. (footnote) The first Bank of United States however did open in Philadelphia in 1791 with branches in eight different cities. The bank conducted general commercial business as well as acting on behalf of the government. The bank appeared to be a triumph as it was managed well and was actually very lucrative.
Founded in 1784, the Bank of New York is the oldest bank in the United States. It was the first bank in New York that opened just months after the departure of British troops from American soil in lower Manhattan. During that time period the monetary system was complex and confusing. The founders decided that The Bank of New York wasn’t going to be a common institution that capitalized on land; it focused on specie, which is money in coins. Then in 1792 the first corporate stock to trade on the newly established New York Stock Exchange was the Bank of New York.
Goldsmith Bankers and moneylenders were essential functions in all places where formal banking had not yet taken root. (Black, Reading 4-3, p.2) Edward Backwell was a prominent goldsmith banker during the seventeenth century who performed many functions that a bank would normally perform. He along with other goldsmith bankers assisted in laying the ground work for today’s formal banking system. In his dealings as a goldsmith banker he facilitated trade, funded the government, and provided money for the military. The evolution
The first company which was to manage their internal affairs and faced bankruptcy is Gurkha Development Bank (Nepal) Limited. The bank is overseen by some of the experts of banking industry of Nepal. The vision of the bank is to provide banking facility to general public valuing morality and ethnicity. This bank uses some of the advance banking techniques and tools which are available in Nepal for the benefit of its customers. The bank has already shut down seven of its
I, Miss. Sarmistha Sasmal, the student of M.Com (Banking & Finance)(Semester-I), from The Sydenham College Of Commerce & Economics, hereby declare that I have completed this project on INTERNATIONAL BANKING, in the academic year 2012-2013 .
The preparation of this report is a requirement of the course on “Management of Financial Institutions”, M. Jahangir Alam Chowdhury, Professor of Finance Department at Faculty of Business Studies, University of Dhaka, who is also the course instructor has assigned us a topics regarding “Merchants Banks in Bangladesh” where industry performance and activities are analyzed by the listed merchants banker in our country.