According to the video, the term bank came from
Italy especially in the world of finance associated with the Jews that lived in
Venice. It has come after great developments in mathematical computations
developed by Fibonacci where he introduced the Arabic numeral system that was
far simpler than the roman system that was dragging Italy and behind as far and
finance is concerned. Jews living in Italy were greatly discriminated by
Christians who confined them to ghettos. At this time money lending had already
taken shape. However, for Christians, money lending was possible, but it was a
sin to offer a person a loan at interest.
This factor greatly placed Jews at a better position in the world of finances where they would offer Christina
loans at interest. The process of the computation of the mathematics would take
place behind closed doors in the ghettos of Venice, and this is where the term
bank rose from.
The development of lending in Italy was made
legitimate by the Medici family that developed the first official banking
system. At the time charging interest and criminal actions against defaulters
were highly regarded as a sin and illegal. However, the Medici family embarked
on a system of commissions of foreign exchange and interest that was hidden in
the mathematics. They also developed a model of increasing is scale in order to
cushion the effects of defaulters which is similar to the model developed by
the Rothschild family.
The first episode shows how banks operate and are
good for understanding how important aspects of banking developed as well as
the principles they were built upon. In comparison to the world of today, the
aspect of interest charged on loans is a very important factor, and governments
play a great role in regulating it to ensure that the public is protected.
References
Ferguson, Niall. The Ascent of Money: A Financial
History of The World by Niall Ferguson Epsd 1 5 Full Documentary. 2013. https://www.youtube.com/watch?v=fsrtB5lp60s.
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