Evolution of Banking It has not so far been decided as to how the word “Bank” originated. Some authors say that this word is derived from the words” Bancus” or “ Banque” which mean a bench. The explanations of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on benches in the market place and when the business failed, the “ Banco” was destroyed by the people Other authorities hold the opinion that the word “ Bank” is derived from the German word “ Back” which means joint stock fund. Later on, when the Germans occupied major part of Italy, the word “ Back” was italianized into “Bank”. It is, therefore, not possible to decide to which of the opinions is correct for no record is available to ascertain the validity of any of the opinions. Types of Banks Primarily all banks gather temporarily idle money for the purpose of lending to others and investing, which bring gain in the form of return, profit and deviants etc. However, ...