The Evolution of Banking and Insurance: A Historical Perspective
In the annals of history, the inception of banking dates back to the moment currencies were first minted, and affluent individuals sought secure havens for their wealth. From the ancient temples serving as the earliest banks to the emergence of complex financial systems in thriving empires, the evolution of banking has been a testament to its enduring significance. Temples as Pioneers of Banking In the earliest civilisations, religious temples took on the role of the first banks, providing a sanctuary for the storage of valuable assets. These sacred spaces not only safeguarded wealth but also delved into the business of lending money at interest, mirroring the practices of contemporary financial institutions. The Birth of Formal Banking Structures As history progressed to the 18th century, governments began granting banks autonomy, influenced by the economic theories of luminaries such as Adam Smith. However, this newfound freedom was not without its challenges, as financial cris...