The Ancient Roots (18th Century BCE)
The history of banking did not begin in high-rise corporate buildings, but rather inside sacred temples. In ancient Egypt and Babylon around the 18th Century BCE, people utilized temples to store their most valuable asset: gold. Temples were chosen because they were heavily guarded, respected, and deemed the safest places against theft.
During the reign of King Hammurabi in Babylonia, priests began keeping detailed written records of loans. This historic practice marked the true origin of banking as a secure repository for valuables and a hub for asset exchange.
Financial Structuring (4th Century BCE)
By the 4th Century BCE, banking practices matured significantly, particularly in ancient Greece. Entrepreneurs and citizens continued to deposit wealth in temples, but the services expanded.
Early Greek bankers offered:
- Loans and deposits
- Currency exchange
- Authentication of coins and precious metals
Bankers would test coins for purity and provide documentation for large-scale coin shipments. This structured approach inspired the Roman Empire to create comprehensive banking regulations. However, the momentum crashed following the fall of Rome and subsequent papal decrees in the Catholic Church that strictly banned the charging of interest (usury).
