Do you know bank?

Bank constitutes an important segment of the financial infrastructures of a country. Banks are among the most important financial institutions in economy and essential business in thousands local towns and cities. So economic development of the country depends upon the growth of the financial infrastructure of the country. Bank does the business of the money, so it is an institution which deals the money by accepting various types of deposits, disbursing loan and other financial services.

There are many opinions on the term 'bank' evolution. There has been lots of investigation on the topic bank evolution which has come out with many opinions. Some say that the term 'bank' has been derived from the French word 'Banque' and some other insist that the term 'bank' has come from the Italian word 'Benca' which is derived from German and means bench, and some other believe that this term is derived from Latin 'Bancus'. Money lender in northern Italy originally did business in open area, or big open room, with each working from his own bench.

In simple word bank may be defined as financial institution which deals in money or monetary transaction which collect surplus money from the public who are not using it at the time and lend to those who are in the position to use it for the productive purposes. Bank pays a certain amount of money as interest on the money deposited by the customer and charged a interest on the leading money which may be differ from banks to banks.

The first bank was established in Venice named 'bank of Venice' in 1157A.D. After this, the second banking institution ' bank of Barcelona' was established in Spain in 1401A.D.similarly, 'bank of Geneva' was established in 1407A.D.