Growth and Development of Consumer Credit Scheme in Bangladesh
15 Pages Posted: 24 Dec 2008 Last revised: 22 Jan 2009
Date Written: October 8, 2005
The banking business is as old as the civilization itself. As early as 2,000 B.C., the Babylonians had developed a system of banks. They used their temples for lending at higher rates of interest against gold and silver, which had left with them for safe custody. Around the same time, the Greek temples used as depositories for people's surplus funds and these were the centres of money lending transactions. The priests of the temples acted as financial agents until they lost public confidence because of people's disbelief in religion. The development of Banking in ancient Rome resembles the Greek pattern. After the death of Emperor Justinian in 565 A.D., the mighty Roman Empire failed resulting in severe damage to the banking business. However, during this period, banking mainly confined to money landing activities, which was largely in the hands of the Jews and the Lombardy who lent money to all. The Christians has forbidden by their religion to lend money on interest since it considered sinful activity. In India, the ancient Hindu scriptures refer to the money-lending activities in the Vedic period. During the period of Ramayana and Mahabharata, the Banking had become a full-fledged activity. During the Smriti period, this also followed the Vedic period. However, in the ancient times, the main functions of the banks related to granting of loans to individuals or the state in times of crisis. Later o-n, they developed other activities, which we now call as banking business (Maheshwari S N, 1992).
Keywords: Growth and Development of Bank, Bangladesh, Consumer Credit, Retail Banking
Suggested Citation: Suggested Citation