Difference Between A Banker And A Bank

The Banker And The Bank

Bank and Banker are terms used to refer to a place that depends on the confluence of both the demand and the supply of money; That is, they function as receptacles used to collect financial savings, and then this money is pumped to various establishments and individuals, and both accept all funds that constitute financial deposits from people who have money in excess of their needs, and who owe the money. . value of this money to other people who owe money to its owners, as well as Then they use it to achieve their own set of benefits.

The Difference Between A Banker And A Bank

The word bank or bank is generally applied to any institution specialized in dealing with money by lending it; Therefore, there are no differences between the bank and the bank, but there is a main difference, which is in the linguistic origin of both terms. As the source of the word bank has been associated with every address of a banking institution, and the word bank is the Arabic equivalent of the English word (bank), and has been carried over to the Arab banking world through the western banking world.

The linguistic origin of the English word (Bank) dates back to the Italian word (Banko), which means wooden table, and it was used to refer to the tables that money changers used in the past to make money. exchange profession, and at that time it was widespread in the cities of northern Italy; Specifically with the early Renaissance on the European continent, and then this profession moved to other European countries.

When studying the origin of the words bank and bank, it seems that the linguistic origin of the term "bank" in the Arabic language is consistent with the connotation of the term "bank" and its idiomatic definition, which over time became the concept used. to refer to the word bank; Where the bank is lexically defined as the bank; That is, the facility that performs specialized credit operations, such as: providing money in the form of loans and accepting financial deposits, while the bank is lexically defined as the bank; Any institution that implements credit operations, such as: financial loans, investment of funds and deposits.

A Brief History Of Bankers And Banks

Studies specialized in history show that the first banking and financial operations appeared in 3500 BC, specifically in the Mesopotamian civilization; Where an important network of banks spread, and they needed to establish rules to control their activities, and banking operations witnessed a development in ancient Greek civilization. By making financial loans and collecting deposits, the Romans controlled the Greek regions, but got their banking ideas from the Greeks; Because they were engaged in agriculture more than trade.

The modern form of benches dates back to the late Middle Ages; That is, between the 13th and 14th centuries AD. C., specifically when the commercial operations extended by the Italian cities and regions; This increased the wealth of the feudal merchants. In order to preserve these funds from theft, their owners wanted to deposit them with the owners of goldsmiths and exchange houses, in exchange for obtaining certificates documenting their ownership.Over time, people's trust in exchange operations increase; This led to the emergence of certificates of deposit for their holders, which are considered the first basis for checks.

In the XV century d. C., specifically at the beginning of the Renaissance, the banking activity witnessed a new development; Due to the increased flow of gold, and in the 16th century AD, the first forms of commercial banks appeared; Where the Bank of Amsterdam was founded in 1609 AD and the Bank of Stockholm, which is the first bank to use banknotes according to its design today. 

Types of Banker and banks

Banks and banks in the business environment are divided into several types, and each type is characterized by its own method of work. Here is some information on the most important types of banks and banks:

• Central banks: these are financial institutions that seek to support the economic environment and the monetary system of a particular country; Therefore, these banks are owned by their own countries, and the central bank is called Banco de Bancos; that is, the bank responsible for all other banks in the country; Therefore, the central bank is at the forefront of the banking system in countries.
• Commercial banks: These are the banks that are interested in keeping all financial deposits and withdrawn through checks or cash withdrawals. The name of the commercial bank goes back to the role of banks in the past; Where it contributed to providing financial financing for short-term loans; In other words, the repayment term is equivalent to one year, but at present Commercial Banking offers various loans in their repayment terms, which exceed one year and are classified as medium and long-term loans.
• Specialized banks: These are banks that contribute to the financing and support of various economic projects and operations, whether commercial, agricultural or industrial, based on the specialization of each bank, these banks are of various types, including:

1. Industrial banks: They are banks specialized in the financing of industrial activities, they grant a range of credit loans based on certain guarantees or mortgages, they are also interested in financing all industrial operations; Buying products and raw materials that support the continuity of a particular industry.
2. Agricultural banks: these are financial institutions specialized in financing agricultural activities; Obtain the greatest amount of agricultural products resulting from the cultivated land.
3. Real estate banks: These are banks that seek to grant the necessary loans; In order to support the purchase of various real estate, such as: buildings and land, these banks usually grant long-term loans, they are also interested in project management and provide the appropriate advice for various real estate activities.