Banking is a mainstay of modern civilisation , but its origins stretch back over four recorded millenia and perhaps even further .

From simple deposits to concepts of interest , the creditor-debtor relationship , letters of credit , institutional independence , and the ongoing conversation of regulation , we track some key developments in the history of banking .

Babylonia gets the ball rolling on interest

Although the concept of depositing wealth is likely to be even older , the palaces and temples in the Mesopotamian state of Babylonia are among the first to record a key innovation : interest .

Those wishing to store their gold were required to pay 1.6 % interest of its value to the institution .

c . 2000 BC

Julius Caesar changes the creditor-debtor relationship

The Romans brought banking out of the temples and made it a distinct sector . During Julius Caesar ’ s five year reign as dictator , he granted creditors the power to confiscate land from debtors who could not pay with money .

This new dynamic consolidated the power of banking institutions for generations .

c . 49 BC

16 July 2021