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Money hidden in temples ; loans made by priests
Egypt Mesopotamia -
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Financial transactions are made by entrepreneurs/businessmen, priests or individuals. They take care of book transactions : take déposits, make loans, change money (different currencies), tests coins, transfer money in other cities
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Jews take care of money in Europe and Templar Knights of that of the King
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The Lombards (from italy) replace the jews and invent the double-entry book keeping and so the idea of loan and of interests.
The Bardi and Peruzzi take care of Financial services for the Pope and his community ; they also create bills of exchange to enbale people to get loans or withdraw money in other cities. -
The Medici are important bankers in Italy but are overpowered by the German dynasty of the Fuggers. They diversify the interests from gold to silver, copper and feudal rights. They also raise the rates sometimes 45% from 12%.
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Checks were invented in Italy to secure transactions/transfers of money by avoiding coins transfers. It is only used between banks and the moneycan be taken/withdrawed or legft on the bank account (in that case it only profits the bank (interests)).
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In 1661, Johan Palmstruch invents the bank notes that can be exchanged for silver coins ; later as they were trusted they became a real Currency to buy things with. First it only existed in Sweden and then appeared in Europe.
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Banco Giro widened the system by creating partnerships between different banks accross the country aka national banks ; they also lend money to the government.