Bank

INTRODUCTION

1.1 Background of Bank:

Bank constitutes an important segment of the financial infrastructure of any country. The economic history of many countries reveals that economic development and growth of financial infrastructures go hand in hand. Without the growth in financial infrastructure, there can be no development in the economy.

Generally, an institution established by law, which deals with money and credit is called bank. In a common sense, an institution involved in monetary transactions is called bank. A bank simply carries out the work of exchanging money, providing loan, accepting deposit and transferring the money.

Banking is nearly as old as civilization. The ancient Romans developed a relatively advanced banking system to serve their vast network, which extended throughout Europe, Asia and much of Africa.

The term bank was derived from the Latin word “Bancus” which means the bench on which the banker would keep its money and its’ records. The first banking institution was established in 1157 A.D. known as “Bank of Venice”. Following its establishment, a lot of banks in different parts of the world were created notably as “Bank of Barcelona” in 1401 A.D. and “Bank of England” during the 17^th century.

Standard Chartered Bank was the first international bank to be established in Nepal and it was established in 1987 during the Shah dynasty. It was established as Nepal Grindlays Bank in collaboration with Grindlays Bank of London. After Standard Chartered Group acquired worldwide operation of Grindlays Bank, it changed it’s name to Standard Chartered Bank Limited on July 16, 2001 in Nepal.