LIPOSONLINE.COM – 4,000 Years of Banking: From Temple Vaults in 18th Century BC to Today’s Digital Banks Modern banking did not start with skyscrapers, apps, or ATMs. Its roots go back to the 18th century BC, when people stored gold inside temples. Today banks are the engine of the global economy. Almost every financial activity depends on them.
We deposit savings, receive salaries by transfer, apply for mortgages and business loans, and even pay for food using QRIS that connects directly to our bank accounts. According to historical records, Banca Monte dei Paschi di Siena in Italy, founded in 1397, is the world’s oldest bank still in operation. But the practice of banking itself is far older.
18th Century BC: Temples as the First Banks in Egypt and Babylonia
Banking began around the 18th century BC. There were no bank buildings or logos. Religious institutions, especially Egyptian temples, performed banking functions.Why temples? Because they were considered the most secure places. Sacred, heavily guarded, and rarely robbed, temples became trusted places to store gold, silver, grain, and important documents. Priests served as both custodians and bookkeepers. In Babylonia during King Hammurabi’s reign, the system became more structured.
Priests inscribed loan agreements on clay tablets that listed the lender, borrower, amount, and interest rate. These records established the two fundamental roles of banking: protecting assets and keeping transaction records.
4th Century BC: Banking Grows and Gets Regulated in Greece and Rome
By the 4th century BC, Greece had become a center of global trade. Merchants used temples not only to store wealth but also to carry out financial transactions.Greek bankers offered money transfers between cities and kept organized accounting books.
The Roman Empire later adopted these practices and created government regulations to supervise banking and protect the public.This progress ended with the fall of Rome. Europe’s economy collapsed, and the Catholic Church banned usury — charging interest on loans. As a result, banking in Europe declined for most of the Middle Ages.
12th to 14th Centuries: The Rise of Italian
BankingEurope revived in the 12th century. Trade moved to Italy, especially Venice, Florence, and Genoa. Rich merchants needed large amounts of capital to fund trade with the Middle East and Asia.In 1171, the Bank of Venice was founded, considered one of Europe’s earliest medieval banks. It was followed by the Bank of Barcelona and the Bank of Genoa in 1320.The biggest innovation came from Florence in the 14th century.
