History Of Banking Essay

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1.1) INDUSTRY INFORMATION 1.1.1) History of Banking The business of Banking is as old as money. Ever since man began, using money as means of transaction there has been a need for banking. Rich merchants in the ancient world gave loans on grains to farmers and traders who traded their goods between cities. This had been happening since 2000 BC in Assyria and Babylonia. There is archaeological proof of money lending activities in ancient India and China. Kingdoms financially backed by a robust banking system flourished in all aspects of trade and commerce. Their main function was to act as an intermediary who accepts deposits and directs these deposits into lending activities. Banking in its modern sense came about during renaissance in Italy to the flourishing cities of Florence, Venice and Genoa. And the oldest among these which is still in existence is Monte dei Paschi di Siena, which is headquartered at Siena, Italy, that has been in existence since 1472. These banks spread across the Holy Roman Empire all the way from northern Italy. They gained importance during the crusades and holy wars to finance the armies. Many of these ancient banks got taken over by other modern banks. Large number of banking innovations came about in Amsterdam during the Dutch era in the 17th century and in London in the 18th century. This was followed by a major shift in the scale of banking with developments in telecommunications and computing in the 20th century. They have seen catastrophic financial difficulties over the years particularly the 2007-08 financial crises that caused many massive Banks to go bust. Over the years, religion has played a major impact on the functioning of Banks. Judaism, Jewish, Christianity and Islam being the ma... ... middle of paper ... ...praisal notes are prepared and sent to the regional hub and the national hub for further scrutiny.  Next, the credit information from CIBIL/ Experian/ Equifax and other such credit information companies of good repute will be got before processing the proposal. This gives the credit history of the prospective borrower. The credit hubs through the credit information companies irrespective of the credit limit get the retail loans credit information report. 3.2) Credit Appraisal in MSMEs 3.2.1) Process of Credit Appraisal in MSMEs Flow chart of Credit Appraisal: 3.2.1.1) Loan Application 3.2.1.2) Documents to be Collected by the Branch 3.2.1.3) Processing of Loans 3.2.1.4) Legal Verification and Loan Documentation 3.2.2) Types of Credit Facilities 3.2.2.1) Fund Based 3.2.2.2) Non-Fund Based 3.3) Analysing Financial Data 3.4) Appraisal of Term Loans

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