International Days
International Day of Banks
December 4th 2024
The International Day of Banks, observed annually on December 4, highlights the essential role of banks in promoting financial security and supporting communities worldwide. Beyond offering financial services to individuals, banks contribute to sustainable development by financing global initiatives and sharing valuable information. Established by the U.N. General Assembly, this day underscores the significance of international development banks in advancing sustainable goals and aiding member nations in their progress.
History of International Day of Banks
The International Day of Banks was established by the United Nations General Assembly to recognize the critical role banks play in ensuring financial stability and fostering community development. Banking originated with the use of credit and collateral in barter systems, evolving during the Renaissance when wealthy Italian families created institutions that laid the foundation for modern banking. Over time, banks expanded their functions to include services like personal, corporate, investment, and trade finance.
Development banks differ from traditional banks by focusing on public interest rather than profit. They provide credit and financial support to private and public institutions, driving regional development. The UN highlights the contributions of development banks to global financial and social progress, which led to the creation of this observance.
International Day of Banks Timeline:
1400s: The promissory note, a written pledge to pay a specific sum later, emerges alongside the use of collateral.
1472: Banca Monte dei Paschi di Siena (B.M.P.S.) is founded in Italy as a mount of piety.
1624: B.M.P.S. evolves into its modern form, becoming the world's oldest existing retail bank.
1695: The Bank of England introduces permanent banknotes, advancing from promissory notes payable on demand.
2005: Development bank commitments reach $45 billion in equity, guarantees, and debt securities.
2019: The U.N. General Assembly establishes the International Day of Banks to highlight the role of development banks in fostering sustainable growth.
Banking has its roots in ancient Assyria and Babylon, where merchants provided grain loans secured by collateral, marking the early beginnings of banking. One of the most notable banks, the Medici Bank, was founded in Italy in 1397. The term "bank" originates from the italian word "banca," meaning table, as early italian bankers used benches and tables as exchange counters, which eventually came to signify the transactions themselves. Today, the United States holds the distinction of having the highest number of banks globally, both in terms of institutions and branches. Additionally, the United Nations has mandated that development banks collectively contribute approximately $100 billion towards climate financing.
Source: https://nationaltoday.com/international-day-of-banks/