What is bank management?
We have to understand bank management to understand the background of bank management. Managing the banks daily activities to financial relations is considered bank management. It also rules a variety of concerns associated with the bank in order to maximize profits. A huge component in the history of banking is bank reputation management.
The background of bank management.
The oldest bank in the world is Banca Monte dei Paschi di Siena and is located in Siena, Italy. The oldest bank in the U.S was founded by Alexander Hamilton. He was the first secretary of the treasury of the U.S. Banking started as a process in which money lenders gave people loans.
The Government borrowed as well. They would borrow from the wealthy and paid them with interest at a later date. Bank reputation is extremely important in the sense that they need a good reputation to maintain their status.
The Medici bank established by Giovanni Medici was one of Italy’s most famous. During the 20th century developments in telecommunications as well as other things caused changes to the way banks operate.
This caused banks to get bigger and to extend geographically. The financial crisis in 2007 and 2008 caused failure among a lot of banks. This has definitely sparked much debate about bank regulation and reputation management.
The history of banking is intertwined with the history of money. Two of the earliest things that could be used to barter were grain and cattle. Banking is actually an old-fashioned activity that has earned its way into modern times. Bill of exchange as we know it today was in use in certain parts of the world in the past, just in a different way. It was known as adesha back then and used regularly in India.
In Greece bankers were the first to trade by means of money. Both individuals and businesses performed financial transactions in ancient times. As far as loans are concerned, surprisingly many loans were recorded in writings since the earlier era, although there wasn’t a lot provided by the banks at that time.
Banking started to have a lot of limitations due to religious beliefs becoming more popular. For example charging any type of interest was considered a sin. In the past the church’s opinion was just as important, acknowledged and respected as the State’s. Church and State were equal.
Bank management is crucial to a financial institutions success in modern times as well as historic. We have so many options in this day and age in regards to banking. There is online banking, credit unions and many more.
The banks are in constant competition so the way they manage their activities down to their financial relations determines their reputation according to the consumer. We have millions of banks all over the world. What is going to make me choose bank A instead of bank B? Reputation, popularity, diversity, reviews and benefits to say the least.
All in all throughout history bank reputation management has been an important factor and still is today. There is a lot to be learned from the past and how we used to trade with food and the effect that religion has on decisions that affected us all as well as the state. Over the years a banks reputation has become more prevalent than ever and will continue to grow. We will always have banks. They provide a sense of security and peace of mind.