Money lent, banks, loans ??? What is it???
From the earliest times until today man still does what the monkey did, says a song of the Titans, analyzing well is a half truth, since in the times of the cavemen, because there is not even mention of what could be money, these men used commodities as the basis of exchange among themselves, these exchanges were known as “barter.”
Let’s take an example to make it easier to understand: a person who planted bananas traded bananas for something that someone else had produced that was in their best interest.
As time went by, the exchange of goods among the peoples grew too much, and later men began to make use of precious material called gold and silver as a means of facilitating trade in general. But being of metal, gold and silver were not easy, much less practical to carry from one side to the other.
” Banks are intermediate institutions between surplus agents and deficit agents, who, in addition to others, exercise the function of capturing surplus funds and lending them to the deficient, generating the margin of profit denominated bank spread. Every bank, public or private, has these characteristics. Banks also have the function of depositing capital in forms of savings, financing cars and houses, exchanging international currencies, making payments, among others, “according to Wikipedia.
The Evolution of Banks
To facilitate transportation they created the first coins, made of pieces of gold or silver, on which the weight and its value were marked. One can imagine the person walking with one, two, three kilos of gold in coins, besides being very dangerous to walk carrying such metal up and down, at that time also had thieves, especially on the roads, to get an idea remember those old Western movies that you’ve definitely watched. For safety, some merchants decided to keep it in a place where they knew how to take care of gold: the goldsmith himself.
With this practice, the goldsmith had to provide the merchant in exchange for the coins that were stored, a receipt stating the value of the deposit. Of possession of the receipt the merchant negotiated goods directly with him, because everyone knew that the receipt represented the gold or silver kept with some goldsmith.
People of the time as time went on, they gained more confidence in the receipt and began to use it more in their negotiations and business transactions. Here we already see the creation of paper money, which we know until now as money, money, dindin, bufunfa, makes me laugh etc.
Then you may also realize that the Goldsmith was who gave birth to the idea of a bank we know today.