Kathmandu. The word 'banking' is not only in human life but also the economy of any big or small country depends on the banking system. The word 'bank' was first used in Italy. This Italian word was first used in 1157. The oldest bank in the world is 'Medici Bank'. It was founded in 1397 by Giovanni Medici. It was founded by the Medici family of Italy in the 15th century. The bank is still in existence as the fourth largest bank in Italy.

It is believed that the banking system started in the world from 2000 BC. However, it was not like now. In fact, money lending was common at that time. Traders used to give grain loans to farmers and traders. So they used to go to other cities and bring goods. The banking system started as a barter system. Where the transaction was not done in money ie currency. Instead, people used to exchange goods to help each other.

This process changed later and merchants used gold coins for transactions. When businessmen started going to other countries by sea for business, security personnel were assigned to manage the money. Similarly, the safe deposit system was expanded. However, later on, the practice of usury started when traders started charging interest from traders in exchange for gold coins.

The Medici Bank may have been founded in 1397. However, banking services were resumed in 1472. The Medici Bank was a financial institution created by the Medici family of Italy in the 15th century and was the largest and most respected bank in Europe. Its current name is Banca Monte dei Paschi di Siena. It is also the oldest and still existing bank in the world.

This bank has been lending to people since Columbus discovered America. Currently, this bank has 2000 branches, 26000 employees and millions of customers.