Introduction to Bank

It is generally said that the word "BANK" has been originated in Italy. In the middle of 12th century there was a great financial crisis in Italy due to war. To meet the war expenses, the government of that period forced subscribed loan on citizens of the country at the interest of 5% per annum. Such loans were known as 'Compare', 'minto' etc. The most common name was "Monte'. In Germany the word 'Monte was named as 'Bank' or 'Banke'. According to some writers, the word 'Bank' has been derived from the word bank. A bank is a financial institution which offers savings and cheque accounts, makes loans and provides other financial services, making profits mainly from the difference between interest paid on deposits and charged for loans, plus fees for accepting bills and other services. A bank can also be defined as an organization, usually a corporation,chartered by a state or government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them discounts notes, makes loans,and invests in securities, collects checks, drafts, and notes certifies depositor's checks and issues drafts and cashier's checks. "The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, and has been operating continuously since 1472."
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