PROGRESSION OF BANKING INSTITUTIONS IN PAKISTAN
There are several opinions that how the word ‘Bank' originated. Some of the author's opinion that this word comes from the word ‘Bancus' or Banque', which means a bench. The reason of this beginning is caused by the fact the fact that Jews in Lombard transacted the business involving exchange upon benches available in the market place; so when the business failed, the people demolished the ‘bench'. Incidentally the term ‘Bankrupt's believed to have started out this practice.
Some of the experts are of opinion that the word ‘Bank' is derived from the German expression back, which means ‘joint share fund'. Afterwards when the German born occupied major part of the Italia the word ‘Back' was italicized into ‘Back'.
In fact human being left the need of bank mainly because it begins to understand the importance pounds as a moderate of exchange. Perhaps it where the Babylonian who developed banking system as early as 2k BC. In those days temples had been used as banks because of their prevalent respect. During the guideline of full Hamurabi (1788 – 1686 BC) the founder of Babylonians Disposition, loans were started being granted intended for interest. The borrower must provide guarantee or he had to promise his items or possessions. King Hamurabi drew up a code wherein he laid down standards guidelines for procedures for financial operations by temples and great landowners. Also in Greece, the temples had been used while banks, where the people transferred their money and also other valuables to get safe custody of the children and security. In The european countries with the ‘revival of civilization' (Renaissance) in the middle of twelve hundred years, trade and commerce started expanding which development forced the business community to acquire the money from the Hebrew cash lenders about high interest levels and usury. Seeing the truly amazing demand, these kinds of moneylenders started out organizing themselves and traditional bank started up with the principle seaports of the southern part of Europe. Quickly Venice and Geneva became the most important funds markets of the time and banking though unlike its present form, prospered. What we know as ‘modern banking' originated in the fourteenth century in Barcelona. one particular
2 . 1 Definitions of Bank
" A financial institution, which deals with cash and credit rating. It accepts
Deposits from individuals, firms and firms at a lesser rate of
Interest and share at larger rate of interest to people who need these people. ”2
A financial establishment which usually uses money deposited by simply customers for investment, pays it out the moment required, makes loan for interest, exchanges currency, and so forth
J. W Gilbert in the principles and practice financial defines a banker in these words:
" A bank is dealer in capital or more properly, a supplier in money. He is advanced party between the borrower plus the lender. He borrows of just one and lends to another”. 3
Friend John Paget defines bank in these terms:
" That no person or perhaps body, corporate or otherwise, could be a banker who not
❑ Take deposits accounts.
❑ Take current accounts,
❑ Issue pay Cheques and
❑ Collect Cheques crossed and uncrossed for his customers”4 (The law of Banking by simply Sir David Paged, page 51).
The American identified the term bank in a very wide-ranging sense as under:
" By financial, we imply the business of dealing in credit and by a ‘Bank' all of us include everyone, firm or perhaps company possessing a place of business where credits happen to be opened by simply deposits of collection of funds or currency. Subjects being paid or perhaps remitted about Cheques or order, money is advanced or borrowed on stocks and shares, bonds, of these, bill of exchange, promissory notes happen to be received to get discount or perhaps sale”. your five
2 . two Evolution of Banking in Pakistan
The first phase in evolution of banking in Pakistan sees quite difficult days for the entire banking sector. Starting almost from scratch in 1947, the region today offers a full selection of banking and financial institutions to deal with various requirements of the economic system.
The area right now constituting Pakistan was, fairly...