1.1) INDUSTRY INFORMATION 1.1.1) History of Banking The business of Banking is as old as money. Ever since man began, using money as means of transaction there has been a need for banking. Rich merchants in the ancient world gave loans on grains to farmers and traders who traded their goods between cities. This had been happening since 2000 BC in Assyria and Babylonia. There is archaeological proof of money lending activities in ancient India and China. Kingdoms financially backed by a robust banking system flourished in all aspects of trade and commerce. Their main function was to act as an intermediary who accepts deposits and directs these deposits into lending activities. Banking in its modern sense came about during renaissance in Italy to the flourishing cities of Florence, Venice and Genoa. And the oldest among these which is still in existence is Monte dei Paschi di Siena, which is headquartered at Siena, Italy, that has been in existence since 1472. These banks spread across the Holy Roman Empire all the way from northern Italy. They gained importance during the crusades and holy wars to finance the armies. Many of these ancient banks got taken over by other modern banks. Large number of banking innovations came about in Amsterdam during the Dutch era in the 17th century and in London in the 18th century. This was followed by a major shift in the scale of banking with developments in telecommunications and computing in the 20th century. They have seen catastrophic financial difficulties over the years particularly the 2007-08 financial crises that caused many massive Banks to go bust. Over the years, religion has played a major impact on the functioning of Banks. Judaism, Jewish, Christianity and Islam being the ma... ... middle of paper ... ...praisal notes are prepared and sent to the regional hub and the national hub for further scrutiny. Next, the credit information from CIBIL/ Experian/ Equifax and other such credit information companies of good repute will be got before processing the proposal. This gives the credit history of the prospective borrower. The credit hubs through the credit information companies irrespective of the credit limit get the retail loans credit information report. 3.2) Credit Appraisal in MSMEs 3.2.1) Process of Credit Appraisal in MSMEs Flow chart of Credit Appraisal: 3.2.1.1) Loan Application 3.2.1.2) Documents to be Collected by the Branch 3.2.1.3) Processing of Loans 3.2.1.4) Legal Verification and Loan Documentation 3.2.2) Types of Credit Facilities 3.2.2.1) Fund Based 3.2.2.2) Non-Fund Based 3.3) Analysing Financial Data 3.4) Appraisal of Term Loans
Foner, Eric., Garraty, John A (eds) “Banking” The Reader’s Companion to American History, Houghton Mifflin: New York, 1991., pg. 191
to many people because the bank took over their life. ?The bank is something more than,it?s the
How the Merchants of Venice Created Modern Finance, Jane Gleeson-White explores the development of double-entry accounting from its ancient roots up to its impacts on modern day society. She shows that the effects of double-entry accounting are widespread and encompass almost every aspect of life, not just those involving accounting and finance. Gleeson-White delves into topics ranging from the economic system of capitalism to environmental degradation. She even includes a brief psychology discussion comparing corporations to psychopaths. By covering all of these topics, Gleeson-White emphasizes the importance of double-entry accounting and the role that Venetian merchants played in the perfection and widespread use of this accounting system.
“Education thus becomes an act of depositing, in which the students are the depositories and the teacher is the depositor. Instead of communicating, the teacher issues communiques and makes deposits which the students patiently receive, memorize, and repeat. This is the "banking" concept of education, in which the scope of action allowed to the students extends only as far as receiving, filing, and storing the deposits. They do, it is true, have the opportunity to become collectors or cataloguers of the things they store. But in the last analysis, it is men themselves who are filed away through the lack of creativity, transformation, and knowledge in this (at best) misguided system. For apart from inquiry, apart from the praxis, men cannot be truly human. Knowledge emerges only through
Loans are initially started in 20 century. Before the actual term loan comes into the world. There was so many other names of this term that have same function but have different names like borrowed money from any person with some interest but have a different name. Some called its borrowed money where some called loan. And in 20 century its finally turned to loan.
The origin of money is something that is quite surprising. It was not the government that established money, but the people. Those who used money voluntarily originated money and can still change it at any point in the future as well. It was the free market, which determined what was going to be the national unit for exchange.
Many banks are failing because people borrowed money to buy goods and to invest in the
The setting for this ghost story was at Sturdivant Hall, in Selma, Alabama in the 1860’s.
Even before the creation of the Federal Reserve, banks were used by the public just as we use them today. Deposits were made into savings accounts. Loans were taken out to mortgage a home or finance a new business. Banknotes were issued and spent when the public borrowed from the banks. Borrowers spent these banknotes just as paper money is spent today. These bank notes were valued as money since they were backed by the promise that they would be exchanged on demand for either gold or silver.
Money has evolved with the times and is a reflection of the progress of man. Early money was a physical commodity, grain, gold or silver. During the vital stage, more symbolic forms of money such as certificates of deposit, bank notes, checks, letters of credit, bonds and other forms of negotiable securities came into prominence. Social development transformed money into a trust, “In God We Trust' it says on the back of the ten-dollar bill.” (The Ascent of Money, 27)
Binhammer, H. H. & Peter S. Sephton. Money, Banking and the Financial System. Nelson, 2001.
The evolutionary history of humans has demonstrated the essence of money. Coins was one of the first currency used in the economic development of the Incas, Turkey, Greeks, Romans, Chinese, Spain societies. However, the influx of silver and gold coins did not bring the wealth; it only increased the price of goods. The money was only worth as the trust people have in it, rather than the material it was made of metal or paper. Besides, Medici house was an example of bank that demonstrates the success of the policy of lending when usury was an immoral belief in the Christian world. That made them the leader bankers of the Renaissance
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.