The Online Banking System
These days, online and offline businesses have become tightly and neatly intertwined and dependent on one another, although each stands independent of the other. This has allowed several benefits to arise that can serve everyday living for people of every social and cultural strata. One of the main advantages is monetary exchange, which the primary action of any and every business in existence and those consumers who utilize them.
Several online banking systems allow for the transaction of currency to be made between any two parties, as long as both have an account at any one or several of these systems. Certainly, every single business, whether online based or offline based, has such an account. This is because a great inundation of business activity takes place over the Internet on a daily basis. Even offline business conduct such affairs online for the purpose of ease and convenience.
Checks sent through regular mail takes sometimes several days to reach their recipients and then several more days to clear banking security scans. Online banking transactions, on the other hand, can be performed instantaneously by simply sending the amount tendered straight from one account into another. This currency can then be used as buying power throughout the Internet.
Yes, such money can be transferred to offline banking or credit union acounts, which usually requires a 3-4 day clearance but most online banking accounts offer credit and debit cards so that account holders can extract money straight from their online accounts by way of a regular ATM machine. In either case, the time wait is minimized or non existent for online monetary withdrawal, safe and assured.
How do these accounts differ from the sites promoting offline banks and credit unions? Well, for one thing and this is the most important consideration. Those sites serving offline banks and credit unions do not allow account holders to take money out over public or home computers for security reasons but still inconvenient, especially in urgent or emergency situations, although such funds can be transferred into the online banking accounts, again with a 3-4 day waiting period.
Once the clearance time passes, such currency can then be used online or removed via an ATM machine, just like payment that originated online. This would seem to suggest that online banking systems have not only become more common and more popular but even preferable to the alternative.
There is no mystery why then, offline businesses employ the use of online banking systems since general business insists on easy, quickly moving exchanges. Because the average person can also freely engage in such wonderful practices, online banking has rendered walk in banking virtually obsolete. It would be no surprise if all future banking were eventually to be conducted solely over the computer.
Obinna Heche:
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Cheap Online Payday Loan : Easy To Secure Easy To Repay
Cheap online payday loans can be applied for and secured within one working day. The velocity of the process that is from a simple loan application procedure, getting instant approval and electronic fund transfer within a day, has made it much simpler and amazingly quick to secure funds necessary during an emergency.
Emergency Cash Relief
A cheap online payday cash loan can range in amounts as small as a hundred dollars to about a thousand dollars. The cost of payday loan is about $15 to $30 for the $100 that has been borrowed for 7 daysto 14 days or until the next payday. Life is full of surprises and the unpredictable, most of the times the average John Doe is unprepared for it financially. It may not seem suitable to ask friends or relatives as he faces embarrassment or may have already asked them once before. His credit profile may not be too good to secure a more traditional form of credit. He opts for the low cost payday loan as there are no credit checks and the whole process is hassle-free, done online. He need not waste time wondering where to secure a fast loan from but applies online and gets the cash deposited electronically into his checking account.
Easy To Secure
The cheap payday advance is easy to secure; you just have to fill in a few details such as name, address, e-mail address, telephone number, and other work details. These will be verified and the application approved usually within a couple of minutes. The fax less low cost payday loan is a much better option than the kind of loan that requires you to fax in documents wasting precious time.
Easy To Repay
The cheap online payday loan is easy to repay too. You may give a post dated check or authorize the firm to withdraw funds electronically on the due date. You may also opt for flexible repayment options by having the loan extended for an additional fee.
Your credit profile need not suffer as you may use a cash advance to avoid defaulting on payments that are due or save yourself a bounced check fee. You do not have to worry about bothersome paperwork or wonder what you are going to use as collateral. You need not worry about anything as long as you make payments on time and borrow only as much as you can easily repay on your next payday. Fast and efficient cheap online payday loans are indeed very easy to secure and available to almost everyone.
The cheap online payday loan is a reliable source of credit that is easy to secure. Just fill in a simple fax less low cost payday loan application online and get approved within minutes. Visit http://www.lowcost-paydayloan.com/ for more information about payday loans.
Would You Borrow $80bn From This Man ?
In the aftermath of the disastrous run on the Northern Rock Bank during September 2007, the Bank of England began to realize the enormity of the calamity which had unfolded.
Instead of pumping money into the banking sector in order to avert the impending liquidity crisis, the Governor of the Bank of England signalled to the markets that banks which have become weakened by imprudent actions may be allowed to fail.
When the run on Northern Rock was eventually halted by a government guarantee to all depositors, there was pressure on the Bank of England to act in order to ensure that no other bank would be at risk.
Mervyn King, the Governor of the Bank, announced on 19 September a series of auctions designed to provide loan funds for a period of 3 months. The funds would be secured on a flexible package of collateral, including mortgages. The rate of interest would be 6.75%. US$20bn was on offer on each of the 4 auctions, during the period 26 September to 17 October, making a total of US$80bn.
Financial markets have been rife with rumours that several other UK banks are at risk. The most likely candidate appears to be Alliance and Leicester whose share price has fallen from GBP11 to GBP6 during 2007. The cause of the problem is the same as Northern Rock, namely, it requires significant funds from the wholesale market in order to top up money held from depositors. However, there are persistent rumours that larger banks, such as Barclays, are in trouble.
If these banks are in such dire straits, it is remarkable that there were no applications received by the Bank of England for the US$80bn of funds on offer.
Admittedly, the funds were being offered at around 6.75%. Compared to the bank rate of 5.75% and interbank rates of around 6.2%, the interest rate was not generous. However, if borrowing money at 6.75% for 3 months, and possibly longer, could ensure the survival of a bank and allow the directors to sleep at night, it is surprising that there was not a single applicant.
In a slightly different context, if homeowners, who had defaulted on mortgage capital repayments, were offered an interest only loan of 6.75% for 3 months, the offer would have been welcomed, and home repossessions would be reduced dramatically.
The reason why no-one responded to Mervyn King’s offer is due to the collapse in confidence and credibility of the Bank of England.
Mervyn King justified the Bank of England’s lack of intervention with respect to Northern Rock by reference to ‘Moral Hazard’. By this the Governor meant that he did not wish to send a signal to other banks and financial institutions that the Bank of England would bale them out should they experience difficulties in the future due to poor policies or imprudent lending.
While it is useful for the Governor to caution banks against the dangers of risky business models and the dubious practice of making loans to customers with low credit status, it is singularly inappropriate for him to make such remarks during a banking crisis.
Prior to the crisis at Northern Rock becoming public, it is clear that Lloyds TSB wished to initiate buyout talks. It appears that they were seeking a Bank of England loan of up to GBP20bn over 2 years. This sum was roundly rejected. With the benefit of hindsight, this was a reasonable offer from Lloyds TSB as the Bank of England has subsequently handed Northern Rock some GBP28bn and the crisis remains far from over.
While Mervyn King was considering ‘Moral Hazard’, both the European Central Bank and the US Federal Reserve were quietly increasing liquidity in financial markets. Indeed on September 19th, the Federal Reserve cut interest rates by 0.5% from 5.25 to 4.75. This was followed by another cut at the end of October to 4.5%.
In addition to the stupidity of the policy, talk of ‘Moral Hazard’ seems a little peculiar. If the Bank of England was planning to open a massage parlour or lap dancing club in Threadneedle Street, then this may well constitute a moral hazard for Mr King and his colleagues at the Bank of England.
Mr King also made several references to the desirably of ‘Covert Action’ in dealing with the Northern Rock crisis, but claimed that he was prevented from acting in this way by UK legislation. This was an odd claim as neither Mr King nor his colleagues are on record as pointing this out during their 10 years of independence from the UK Treasury. Perhaps Mr King was slightly befuddled and was confusing his role with that of MI5 or the CIA.
However, the main impediment to any bank taking up the Governor’s offer was that the guarantee of confidentiality was not deemed to be worth the paper it was written on. Based on the culture of blame and leaks from the tripartite agencies of the Bank of England, the Financial Services Authority and the UK Treasury, no bank was prepared to take the risk of borrowing a large sum from the Bank of England.
The essence of banking is confidence. Unless depositors consider their funds to be safe, there will be a run on any bank, no matter who it may be.
Should a bank’s need for cash become public, then the bank may unwittingly invite a run on its funds. A leak from the Bank of England would transform a crisis into a disaster. The bank would become a second Northern Rock.
Leslie Hardy is the UK Chairman of Wellington Estates Ltd, a North Cyprus property development company. Read more on Northern Rock at http://www.wellestates.com
Do You Know What A Bond Is?
It’s a loan where you lend money to the US government, municipality, a state, or a big company like GM or Microsoft. They then use this money to run their company, pay off debt, build a road etc. This bond has to be repaid to the bond-holder at an interest rate, and time that was agreed on, which is called maturity.
The interest rate the bond will gain is made by the stability of the company. When choosing a company that is more stable then the other, remember this rule, the higher the interest rate, the riskier the bond and less stable the company. Of course the more you risk on a company the more potential capital you can make.
What is the difference between a bond and a stock? With a stock there are no promises about your returns. When you get a bond from a company it guarantees to pay back your principle plus interest.
When you purchase a bond the price you buy it at is known as its face value. Once you purchase a bond the bond holder has to hold it to the maturity date, you know exactly how much you are going to get back with a few exceptions. For example, if you purchase a bond a $3,000 face value, at a 10% interest rate, and a 10 year maturity, you would then collect interest totaling $300 in each of those ten years.
When your maturity was up you would then get back your $3000 investment and the company hold no further debt to you. That is why bonds are often referred to as fixed income investments.
Bonds have another advantage, in some cases they are tax exempt.
According to Joshua Kennon, from Your Guide to Investing for Beginners, he says When a government or Municipality issues various types of bonds to raise money to build bridges, roads, etc. the interest that is earned is tax exempted. This can be especially advantageous with those whom are retired or want to minimize their total tax liability.
I will now explain some corporate bonds. One factor of corporate bonds is called, a call provision. This allows the company to pay back the face value to the bond holders before maturity and pays no further interest.
Another aspect of a corporate bond is called convertibles. They have the ability to convert into shares of stock. The most of corporate bonds are called fixed rate bonds. This is where the interest rate paid till maturity and will never change.
Other corporate bonds use floating rates which means the interest rate paid changes depending on money markets, treasury bills, etc. These types of rates typically yields lower than those of a fixed rate at the same maturity. Some corporate bonds are called zero coupons.
They make no regular interest payments at all. A zero coupon bond sales at a discount to face value and then is redeemed at the end of maturity for full face value. But regardless of the interest payments and the way that they are structured you invest into the company on one factor only that the bonds are a good investment and you must have faith that the company will repay you.
Court helps people to learn about private student loans. You can read more of his work by visiting: http://whalehookloans.com.
Banks Charges and How They Affect You
Getting your first bank account may seem like a big achievement at first, but it can be quite a hassle as well. One big pain is the understanding of your bank’s special charges and under which circumstances they may be levied against you. Let me explain to you what a bank charge is.
It is the way for banks to charge you for all of the extra services that you may or may not be aware that you are receiving. These can unfortunately be quick unfair for some consumers as bank charges can be very difficult or impossible to reverse except under the most extreme of circumstances. For all you know, there may be an incorrect charge that will end up costing you far more money than you had ever bargained for.
Do you want to gain an understanding of bank charges? Let us study some of the common charges that are levied by banks. One well known instance is the instance of an overdraft. An authorized overdraft is sometimes exempt from bank charges. In this instance the user just has to set up a temporary borrowing plan with their bank which will let them be slightly in the red for short periods of time without getting nailed with large charges.
But if your overdraft has not been authorized, you could be charged heavily. If you slip one number and end up 10 dollars in the red through writing a check, you can soon face large overdraft fees established by your bank alongside high interest charges that they will access.
The worst thing that a bank user can do is assume that many of their banks “services” are free. Most often, these “services” are charged. Even small errors could be charged by your bank. These include problems as simple as just using your ATM card more than your contract allows in a year or using more check books than you were allocated for the full year. One very serious problem is if you are forced to use an ATM from another bank.
Although some banks do not charge for this, other banks do. These can build into substantial sums quite quickly. These are really just normal services that many people would assume were just part of any package. But of course, you should not be making assumptions in the first place. Ignorance isn’t always bliss.
The best way that you can possibly defend against unexpected bank charges is to fully look through all of the papers and contracts describing every service for your account. Make it a point to read the fine print if you do not want any extra expenses in the future.
If you want to have a bank account then you need to understand the many charges that banks can levy. The fact that you must keep in mind is that there are no freebies. The bank you are dealing with will provide you assistance, but only for a charge. They have little incentive to not charge a fee when they do you any favors that they don’t have to do.
Read everything that they give you and read everything that you sign. Make sure that you are aware of the various charges that are being levied by the bank.
Reclaim Bank Charges at http://www.thriftyscot.co.uk/Banking-Savings/bank-charges.html For Saving Accounts, visit http://www.thriftyscot.co.uk/Banking-Savings/regular-savings-accounts.html Get the Best Saving Accounts at http://www.thriftyscot.com/savings-account/
How You Can Avoid A Bank Levy ?
A bank levy can be issued for several reasons. It is most commonly used by the IRS and creditors. For instance if you have not paid your taxes or a debt that you owe.
When a bank levy is issued it means that your account is frozen you are not able to withdraw anything out of your account. And the funds that was in your account can and usually will be seized.
Before a person has a bank levy issued to his/her account they will receive a letter, a phone, or some type of notice letting them know that action will be taken if they don’t pay up on what they owe.
It is important that as soon as the bank levy is issued to your account that you contact the court as soon as possible if it is issued by a debtor. There is a way for you to be able to receive your funds back and make a payment plan with the debtor. This has to be done within 30 days of the levy being issued.
Now when the IRS issues a levy the money is not refundable and the bank levy will stay on your account until you pay all of the taxes that you owe. Although you cannot withdraw money at this time you are able to make deposit so if you have an employer that deposits your check into your account it will be seized.
When a bank levy is issued to an account the banks usually will charge the account holder $100 or more for every time there is a bank levy issued to that persons account.
The IRS served banks with memos to guide them on how they will work with them when issuing bank levyies. They send these memos to make banks aware of the laws governing the disclosure of bank account information.
The law that was shared on business tax recovery website was “Title 26 United States Code Section 6333 of the Internal Revenue Code (IRC) authorizes the Service to examine any books or records pertaining to property or a right to property subject to a levy. 1 The Treasury Department interprets this section to mean that, at a minimum, the Service would be entitled to a bank record indicating a levied accounts balance on the date the levy was served.”
This is only a portion of one of the guiding memos that the IRS has served banks with. When an IRS issues a bank levy the bank is required to give the IRS all of the taxpayers account information either willingly or by summons.
When the bank levy is issued the account is frozen immediately whether the bank gives the information right then or if the taxpayer’s information has to summonsed.
One way to avoid this happening to you is of course pay your taxes and your debtors. It is not a pleasant thing to go to your bank account one day and find you cannot withdraw money or pay your bills.
Court helps people to learn about auto loans. You can read more of his work by visiting: http://whalehookloans.com.
Gold Plated Business Banking
I always remember as a child, admiring my mother’s wedding ring. There are all types available now, but at the time it was quite unusual. With its angular design and diamond cut patterning with inset diamonds she was as proud of it today as the day she got married.
I always enjoyed the stories of her great uncle, a Jewish jeweller in London, who designed this ring specifically for her. She would tell me about how she would sit and watch him work when she was a child, unable to take her eyes off his gold tooth. He was always cheerful and smiling and proud of his work which was made it so special when he presented her with the wedding ring design years later.
Jews are well known for their trade as jewellers and also for their ownership of gold. Their money making abilities are sometimes unfairly looked down upon. Even until recent times, Jews were pushed out of so many professions by prejudice that they were forced to take the jobs no one else wanted, such as tax and rent collecting and money lending.
Obviously, passing these professions down to predecessors has given them the time to become experts at what they do. This makes them popular with today’s banks and business banking is not a problem for them.
Banks should be the safest of houses and many people have put their faith in safe deposit boxes. These are supposed to be the securest of places for valuable but have had some scorn cast on them in recent years for their dubious banking practices.
It was claimed that, even after it came to light that gold deposits were being made that had been stolen from Holocaust victims, they still continued to accept it.
This was brought to light after a bank security guarded risked death threats to prevent the destruction of Holocaust era records and brought their existence to public attention.
Despite this being a secure system of banking, it is certainly not above the law. In 2000, a US judge approved a $1.85 billion settlement between several Swiss banks and the families of Holocaust victims.
Banking systems have been around since before the dawn of money when people deposited whatever was considered a precious commodity at the time - including grain. However, the biggest asset then, as well as now, is gold bullion.
All the gold that has ever been mined is still in existence today. Value varies very little from year to year. The United States has 16% of all its assets in gold with Chinas reserves being a mere 1%. However, they have expressed interest in increasing their reserve and it is hoped this will push up the price of gold.
The Washington Agreement on Gold limits its member countries to selling less than 400 tonnes of gold per year. This helps to keep the price of gold, and the whole structure of the banking system relatively stable.
In times of inflation, gold has always been seen as a safe commodity as it does not rely on the currency values of any country.
Every year 3000 tonnes of gold goes into jewellery or dental production and around 500 tonnes is now used in automotive electronics on parts such as ignition controls and electronic fuel injection. Gold is a popular choice for electronics as it does not change compositions like other metals after long periods of inactivity.
So, gold is still very much an important commodity but unlike days gone by, is difficult to use in
every-day banking. Business banking still involves cheques and cash but most of it is unseen, using electronic money exchanges and so, back to the gold used in banking but in the electronics.
Expert financier Shaun Parker looks into business banking and the effect gold bullion has on it. To find out more please visit http://www.lloydstsbbusiness.com/accounts/index.asp
A Balanced Banking System
Banking is a business like all others but customers these days seem at the mercy of whatever the lenders want to charge.
Yes, we can shop around but at the end of the day, they’re all in it for profit, gained by ever fluctuating interest rates. They also take risks investing our money without our knowledge and we are susceptible to those investments failing.
However, with the diverse mix of cultures in every country these days it is not that unusual to see a different banking system coming into play.
The Shariah, or Sharia, system of finance has been set up by the Islamic community to comply with their strict laws on banking in accordance with the Qur’an. Sharia law covers all aspects of everyday living for the Muslim community.
Banking and finance are issues that are covered in depth, from personal finances to business banking. Working on a shared profit and loss system makes this system quite different to Western banking. This prevents the bank from monopolising the economy and is less risky to the borrower.
This way, the borrower is more secure, more businesses succeed, more money is borrowed, thus keeping the whole system afloat and everybody from borrower to lender benefits.
Sharia law prevents the collection and payment of interest. So, how do the banks make money?
If a Muslim wishes to utilise a loan to purchase items, the bank actually make the purchase and re-sell to the buyer for a profit that is agreed between the two parties. That profit is set without alteration and it is essential that it is very clear upon the agreement.
No extra charges can be enforced on this loan, even if payments are late. However, rights to the items purchased remain with the bank until the loan is paid in full.
The same principles apply to mortgages. The house is purchased by the bank and resold at an agreed profit to the buyer. Repayments are made in instalments but without the worry for late payment charges. However, a Muslim is expected to meet his repayments without taking advantage.
The land and property will be in the name of the buyer from the outset of the agreement for the security of the borrower but for protection the bank will ask for strict collateral.
As far as business banking is concerned, an individual can borrow interest free money to set up his own business. As with all loans an agreed profit is decided upon from the outset and repaid in instalments.
The borrower provides the labour while the bank provides the finance thus reflecting Islamic law of profit and loss sharing with no one party carrying all the burden of risk/cost of failure.
Money can be lent to businesses, whether existing or new. It is specified that the business must not contradict Muslim beliefs, such as the selling of alcohol or pork, or be involved in any media business which deals in gossip columns or pornography.
Business banking is not free and neither is there any interest imposed. Money is lent on a floating rate interest loan. This means the floating rate is dependent on the company’s individual rate of return.
The banks profit on the loan is equal to a certain percentage of the company’s profits - the profit sharing side of Sharia law. Once the original agreed amount has been repaid, the profit sharing arrangement ends.
So, money can be lent to businesses and it will be dependent on the individual business as to what the repayments will be. Therefore, any business can afford a loan.
Interest is not paid or collected on current accounts so overdrafts are not permitted. However, there is always the option of Hibah (Gift). This is a voluntary payment by a creditor or debtor in return for a loan. This is usually practiced in Islamic banking but is discretionary.
Expert financier Shaun Parker looks into the new business banking culture. To find out more please visit http://www.lloydstsbbusiness.com/accounts/index.asp/
City Of London Banks Splutter Could Give Andorra A Cold
Televised scenes of British people forming long queues outside one of her biggest mortgages lenders, the Northern Rock bank, did little for confidence in the country’s banking system.
Coming on top of the difficulties across the Atlantic in the US with their bank mortgage lenders, both London’s FTSE and New York’s Dow Jones were jittery, with the remedy provided by the Fed and British government in cutting US interest rates by a half point and guaranteeing Northern Rock’s bank customers savings in the UK.
If the current financial situation does worsten, with the US going into recession and Wall Street, along with London FTSE taking a plunge, it could have an impact on the European tax havens of Andorra and Monaco, according to a UK based tax haven specialist company.
‘City brokers in London have been earning high salaries and bonusess to reflect that’, explain the company, ‘but that has been on the back of ten years of economic growth under the current Labour government. The enquiries we receive for Andorra and Monaco are often from those who work in the City of London who are looking to maximise their earnings by reducing their tax bills - but if they aren’t going to be getting the bonuses they’re not going to be able to afford a property in Monaco.’
With the same tax benefits as Monaco, Andorra has also seen interest from UK high earners, who are attracted by the property prices which average a quarter of Monaco’s - a shrewd decision for those who are prepared to sacrifice Monaco’s image for a tax haven that is well known for her winter sports activities between December and mid April.
Commenting on the year so far for property sales in tax havens, the company has reported the year overall looked gloomy for estate agents in Andorra for the year overall given poor sales for January, February and March. But the second quarter proved to be dramatically better.
Rather than the season being delayed, what saved the second quarter was high net worth individuals looking for residency and taking advantage of Andorra’s tax haven status that has reignited the property market.
Buyers from the UK in particular were out in force during April, May and June, with many spending twice as much as the average ski apartment buyer.
One UK company who specialises in tax haven properties sees a direct link between the high prices of property in the other European tax haven of Monaco, and the high spenders moving into Andorra.
Monaco property prices have risen in recent years to the extent where it challenges London for having the most expensive real estate in the world. Andorra has consistently seen double digit property inflation, but is still considerably less expensive than Monaco.
A studio apartment with 43m2 of living space has just come on the market in Monaco at 1,150,000 Euros, while a 2 bedroom apartment with 100m2 can be bought in Andorra for under 400,000 Euros.
With similar tax benefits, the UK company says that some buyers who initially consider Monaco end up buying in Andorra. The buyers have often budgeted a million Euros for a 2 bedroom apartment for Monaco, and are happy to pay half that price for a much larger apartment in a good area of Andorra, with top end apartments in Andorra turning over quickly to foreign buyers. Some Monaco property buyers who buy in Andorra also buy a four or five bedroom chalet with its own gardens, which start at just under a million Euros in Andorra.
The property buyers tend to head for different areas of Andorra, with the ski apartment buyers tending to purchase in the key ski resorts of Soldeu and Arinsal.
Those looking for residency for tax reasons go more for the year round villages and towns which have a resident community.
Outside of the capital (la Vella) these tend to be La Massana and the upcoming village of Anyos, Ordino and Arinsal, although Arinsal’s nightlife during the ski season early December to late April tends to steer many newcomers to La Massana and Ordino, with La Massana having a good choice of financial instutions and banks in her high street.
A guide for Andorra including her banks is available at http://www.yourandorra.com and property for sale in Andorra is at http://www.propertyandorra.com
The Nearly Complete and Utter History and Future of Banking
Ancient Greece provides evidence of banking with Greek temples and some private and civic entities, conducting financial transactions such as loans, deposits and currency exchange. Credit also existed whereby a moneylender in one Greek port would write a credit note for the client who could “cash” the note in another place. There are records of loans from the 18th century BC in Babylon that were made by temple priests to merchants. Effectively the world’s first ever banks were the religious temples which were the absolute centres of the respective communities.
Charging interest on loans and paying interest on deposits became more highly-developed and competitive in secular Ancient Rome - ’secular’ is important to note as the major religions of the day considered the charging of interest to be immoral. The expansion of trade and commerce, especially into Europe, facilitated the need for the increasing provision of financial services.
In Britain, the modern age of banking began in 1640 when King Charles I, needed cash to pay the English army that was being raised to fight against Scotland, seized the gold bullion that many merchants and nobles had placed in the Tower of London for safe-keeping. The 2nd Bishop’s War soon ended the British Parliament returned the bullion back to its owners.
Following the Bishops war in 1642, further warfare broke out with the Great Civil War between the King and Parliament. London was considered the stronghold of Parliament and was the safest city in the Kingdom. This meant led to mistrust of the government and people who did not wish to have their bullion seized by one side or the other placed their gold in the hands of goldsmiths in the city, who naturally had their own methods of safe-keeping.
In Britain Goldsmiths were considered the first private bankers. When depositors banked their gold they received ‘goldsmith’s notes’. These notes essentially were the first bank notes. People were willing to accept payment by these notes as they knew they backed 100% by a deposit of gold.
Current and future developments in banking are linked to the world-wide-web and a vast expansion of trade and commerce which have given rise to an emerging form of banking. Internet communities, functioning similarly to ancient communities, have been established to connect lenders and borrowers. Their aim is to cut out the banks. However looking at the size of lends in these communities and the lack of more complex lending ability or products we are confident that banks and banking staff will remain as important as ever far into the future.
Charging interest on loans and paying interest on deposits became more highly-developed and competitive in secular Ancient Rome - ’secular’ is important to note as the major religions of the day considered the charging of interest to be immoral. The expansion of trade and commerce, especially into Europe, facilitated the need for the increasing provision of financial services.
Current and future developments in banking are linked to the world-wide-web and a vast expansion of trade and commerce which have given rise to an emerging form of banking. Internet communities, functioning similarly to ancient communities, have been established to connect lenders and borrowers. Their aim is to cut out the banks. However looking at the size of lends in these communities and the lack of more complex lending ability or products we are confident that banks and banking staff will remain as important as ever far into the future.
John Mce writes for Commercial Finance People a specialist financial recruitment agency for leasing jobs, asset finance and banking jobs in the UK, Europe and overseas. http://www.commercialfinancepeople.co.uk