History of Credit
The History of Credit - In view to the interest prohibition valid in the Christianity Jews were the only one in the early Middle Ages, the granting of credit was possible for who in the form of money. Also for it an interest prohibition, it was valid was however limited to members of the Jewish religious community. The medieval princes made from this exception move use and financed their yard attitude and wars by the credits of Jewish credit givers. The repayment took place (if at all) via tax revenues, war booty and tributes of subjected opponents.
Besides the supply of seeds for the farmers was quite usual by the leaning gentlemen and the repayment of these consumption credits by portions of the later harvest. With harvest failures this led however to economic difficulties, since frequently the farm was seized (interest farmhand shank).
Travelers of buyers received already in the Middle Ages against deposit of money with a banker letters of credit, against whose collecting main on the travel route parts of the deposited money were disbursed and which could be decreased robbing risk on journeys thereby. This became possible by close family relations of the early bankers.
End 17. Century fell the interest prohibition for Christians officially. The banking, which developed further up to the today’s day, resulted however from the needs of the maritime trade already in former times, particularly in the commercial towns Venice, Genova, Hamburg, Amsterdam and London. Already 1530 granted Jakob Fugger to the German emperor Ferdinand I. a loan over 275,333 guldens
Always already a close bond of trust of the banks had among themselves a special meaning, since not necessarily at each place addresses will maintain could. Such relations exists this very day in the system Korrespondenzbanken away.
Development of Credit in 19. Century
Beginning 19. Century several banks in the form were created by finance companies, since the rising credit needs of the economy could be covered no longer sufficiently by private bankers. In France the earlysocialist ideas of the circle led around Saint Simon to establishments of bank. These ideas were taken up also to Germany and led also here to establishments of bank. Also Gustav of Mevissen, the manager of a. Schaaffhausen’ of bank association, had concerned itself with the ideas of the Saintsimonisten and represented their opinions
Hermann Schulze Delitzsch recognized the necessity in the age of the increasing industrialization to secure for small craftsmen a surviving opposite the industrial companies by financial aids. Developed saving and consumer cooperatives, which granted also credit. Their successors are today’s cooperative banks. Friedrich Wilhelm Raiffeisen created a credit cooperative likewise within the range of the agriculture, in order to be able to grant credits here; from this the Raiffeisen banks developed.
Savings banks, already 1746 developed, operated first apart from the acceptance of inserts the borrowing business and assign since 1952 consumer loans to also firmly agreed upon Rückzahlungsraten.
Credit After 1950
In the years of the reconstruction the meaning of the loan business with private customers increased. The credit institutes granted credit for the acquisition of long-lived economic goods, the consumer loans, which were to be erased with a firm rate agreement within at the most 72 months. The credits were essentially turned off to the content entrances of the customers; apart from a content transfer in particular a transfer by way of security of the object of the purchase became usual with cars. In order to be able to supervise the soil quality of the applicants for the credit, the credit givers announce the granted installment credits to that credit investigation bureau and receive for their part feedbacks, if applicants for the credit take up further credits with other banks.
After 1970 nearly each employee had a current current account for its content entrances and the exchange. The banks received hereby a good view of the income situations and granted arrangement credits at height of several monthly content entrances.
Internationalization and globalization
As consequence of the development of the foreign trade business was locked ever more frequently also in foreign currencies, which were frequent by granting of credit to financiers. This taken place first under engagement from banks inland, partly also foreign branches in particular the importers were switched on, in order to lower the credit costs. Since the 1980ern the direct raisings of credit increase abroad, since increasingly associated companies are internationally active and them the capital markets abroad are directly for raisings of credit accessible.