Evolution of banking. Evolution of banking. It has not so far been decided as to how the word ‘Bank’ originated. Some authors are of the opinion that this word is derived from the words ‘ Bancus ’ or ‘ Banque ’ which means a bench.
Other authorities hold the opinion that the word bank is derived from the German word ‘Bauk’ which means ‘joint stock fund’.
Greeks also used temples for banking activities where people not only deposited their money and valuables for safety and security, but also borrowed money from there.
They also developed important banking facility of documentary credits.
These goldsmiths issued receipts or notes to their depositors in respect of the cash or articles left with them.
They also encouraged cash deposits by their customers by offering them a part of their profits earned on the money.