Tracing The Relationship Between Business And Banking

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