| Banks and bank services have existed | | | | the financial powerhouses of the |
| throughout history; it is believed they | | | | Mediterranean. Their loans allowed business |
| predate currency and traces of bank records | | | | to flourish as overseas trade became a |
| are estimated to have been present in the | | | | mainstay of any nation's economy. Italian |
| third millennium B.C. In the ancient world | | | | bankers spread throughout Europe and appeared |
| they held grain, cattle and precious metals | | | | in many European cities. Although problems |
| such as gold and are believed to have carried | | | | did arise when defaulted payments by monarchs |
| out their business in temples and palaces as | | | | caused the bank services to become political |
| these were the safest places to contain | | | | issues. |
| wealth. | | | | |
| | | | During the beginning of the modern period the |
| The business bank relationship is believed to | | | | business bank relationship was further |
| have begun in ancient Babylon where temple | | | | enhanced. Expeditions to the new world were |
| priests granted loans to merchants. It is | | | | funded by banks in Spain and Portugal; such |
| believed that the first laws in society | | | | journeys became profitable for the bank |
| contained rules for banking and a bank code | | | | tellers as the returns became vast after the |
| of conduct. Showing the extent at which banks | | | | initial outlay. In Britain, new trade |
| and society are intertwined. | | | | businesses used banks to fund their |
| | | | activities in the new world with tobacco and |
| Ancient Greece took banking further by | | | | coffee imports from the Indies being |
| creating a centralised grain bank network and | | | | extremely profitable. |
| created credit slips for customers. These | | | | |
| slips were used in business and consisted of | | | | Bank services and loans were the backbone of |
| instructions to bank tellers to perform | | | | the industrial revolution in Britain. Without |
| deposits and withdrawals. This can be seen as | | | | the funding that supported the entrepreneurs |
| a strengthening of the business bank | | | | the improvements to the transport network and |
| relationship. | | | | creation of evermore complex steam engines |
| | | | would not have been possible. It is thanks to |
| The Roman Empire perfected banking; being | | | | the banking that Britain became the richest |
| obsessed with administration, banks took a | | | | nation in the world, the empire was dependent |
| more recognisable form as increasing amounts | | | | upon loans and the reason it expanded to such |
| of paperwork were involved in transactions. | | | | a huge extent was the desire to repay these |
| Detailed bank regulations and laws were also | | | | sums of money. |
| created to define the industry. The Romans | | | | |
| also created the first bank charges in the | | | | In the modern world global bank services have |
| form of interest. The business however | | | | shrunk the world. Transfers are now |
| experienced a downturn with the rise of | | | | instantaneous and banks fund vast projects on |
| Christianity as interest charges were seen as | | | | a worldwide basis. The profits they gain |
| immoral; subsequently bank services dwindled | | | | break records on a regular basis, figures of |
| in Western Europe until the time of the | | | | twenty and thirty billion are not uncommon |
| crusades. | | | | for the world's largest banks. These sums |
| | | | make some banks wealthier than nations and |
| The medieval period saw a revival for the | | | | subsequently the favour they hold in politics |
| business bank relationship. Trade fairs | | | | and business is seemingly unassailable. |
| present in most major European cities began | | | | |
| to create bills of exchange where notes were | | | | Bank services have provided financial support |
| given in exchange for hard currency. These | | | | for the business world since the beginnings |
| bills were redeemable at other cities and | | | | of civilisation; today they hold a position |
| hence eliminated the necessity to carry huge | | | | of power as entrenched as many political |
| fortunes across country; forming a far safer | | | | systems. In many cases bank services have |
| option for merchants. This need for the | | | | been fundamental in the formation of nations |
| transfer of large sums of money was a direct | | | | and political systems and have funded the |
| result of the crusades and as the banks | | | | exploration and empire building that has |
| redeemed the bills in line with exchange | | | | created the world we see today. The close |
| rates and inflation, bank services started to | | | | business bank relationship is profitable for |
| become profitable. | | | | both sides, as long as banks are willing to |
| | | | fund entrepreneurial schemes the relationship |
| Throughout the later medieval period the | | | | is set to continue indefinitely. |
| Italian bankers of Lombardy and Genoa became | | | | |