International Day of Banks is on December 4, and it is annually commemorated all over the world to acknowledge the role of banks in providing people with important information for their financial security. Apart from their commonly understood role of providing financial support to individuals, banks also serve their communities in diverse ways. The International Day of Banks was adopted by the U.N. General Assembly as a way to draw attention to the role that international development banks can play in supporting sustainable development. Banks support the international community’s goals by financing the sustainable development of member nations and providing information for achieving these goals.
History of International Day of Banks
International Day of Banks was instituted by the United Nations General Assembly to acknowledge the importance of banks and the role they play in the financial stability and development of their communities. Banks are financial institutions. They accept money from the public in the form of savings or current deposits, which they lend to others who need it and can provide some collateral. The concept of banking began with the simple implementation of credit in the barter system with the use of collateral.
During the Renaissance, the wealthy Italian families set up institutions that became the basis of modern-day banking, and these spread across Europe. Before banknotes existed, merchants would store their gold with bankers until banks became further entrenched in the finances of their communities. Today, banks perform many functions on behalf of their clients, like personal, corporate, investment, transaction, insurance, consumer finance, and trade finance.
Development banks do not accept deposits from the public, but they give credit and direct governmental investments by offering financial support to private and public institutions. The primary objective of development banks is to serve the overall public interest rather than make a profit. The UN recognizes the important role of development banks in contributing to the financial wellbeing and overall development of a region, and so the organization instituted the International Day of Banks.
International Day of Banks timeline
With the rise of the use of collateral comes the promissory note, a written promise to pay a specified amount of money at a future date.
B.M.P.S. is first established as a mount of piety in Italy.
B.M.P.S. is reestablished in its modern form as an Italian bank that still exists today.
The Bank of England is the first to introduce permanent issue banknotes, evolving from the promissory notes that were payable on demand.
The total commitment of equity, guarantees, and debt securities, to development banks, reaches USD 45 billion.
The International Day of Banks is instituted by the General Assembly of the U.N. to acknowledge the important role of development banks in contributing to sustainable development.
International Day of Banks FAQs
What are the main functions of development banks?
Development banks finance projects that will help the economic growth of developing regions. They provide long-term financing by tapping into new funding sources and leveraging additional resources, private and public.
What is a bank person called?
An employee of a bank may be called a banker or bank teller. They could also be a treasurer, accountant, bursar, bookkeeper, or bank clerk, depending on their functions.
What is a group of banks called?
A group of banks is called a consortium. A consortium of banks more specifically refers to several institutions coming together to finance a single borrower. A similar term is group banking which is the control a company has over two or more financial institutions.
How to Observe International Day of Banks
Read up about development banks
Development banks don’t accept deposits, but they support private and public institutions with their financial goals. Read up on them because someday, you might need one.
Make information packets
Spread the word about development banks and their work. Your community could take advantage of the services they offer.
Organize a conversation
Work with your community leaders and local development bank to organize a conversation about financial tools. This is a great way to share the information and resources development banks have.
5 Facts About Banks That Will Surprise You
Ancient Assyria and Babylon
Merchants would offer loans of grain against collateral in ancient Assyria, likely the beginning of early banking.
The famous Medici bank
One of the most famous banks was set up as early as 1397 in Italy.
‘Bank’ was derived from ‘table’ in Italian
Benches and tables, called ‘banc’ in old high German and ‘banca’ in old Italian, were used as exchange counters by the early Italian bankers, and soon came to refer to the transaction itself.
The U.S. has the most banks
America has the most banks in the world in terms of the total number of institutions and branches.
Contributing to Climate Finance
The U.N. has stipulated that development banks will collectively contribute about $100 billion toward climate financing.
Why International Day of Banks is Important
We respect development banks
Development banks play an important role in developing communities and helping them become financially independent. We respect the work they do and look forward to celebrating them.
We want to learn more
Banks contribute to the financial health of the country in many ways. It is important to learn more about the role banks play in our lives and communities.
It raises awareness
Everyone should be more informed about the financial tools they can access. Development banks have this information, and we want to make sure it gets where it needs to.
International Day of Banks dates