Banks and Credits


Latin word “credit” (credere) means to believe, to trust. The second name of creditor or lender is trustier. In our time, it is already difficult to see behind the established credit relations their origins, explaining the appearance of this conception.

In many historical publications there are indications that the first credit organizations have emerged in antique Babylon. Inhabitants have applied for money to usurers, i.e., to which who gives money temporarily in growth, to earn interest. Every person who was believed could obtain desired money to pay for goods or other costs. If there was no credit to the person, i.e. he was not believed that he would give the money back, the money was not given.

If the debt was not paid, the person was sold into slavery. Later it was introduced more humane concept of “debtor’s pit” i.e., the debtor was put in prison for violation of credit obligations. Pit is a prison, originally made in the ground in timberwork, and for some time keeping this name. At the present time in the Russian Federation, according to the law, signed on December 29, 2014, the institute is being reborn (introduction in Russia of institute of bankruptcy of citizens, as well as that of the administrative and criminal responsibility of citizens for the wrongful actions in bankruptcy).

Credit (paper) money emerged in Russia in 1841 is a sort of credit. By the spread of paper money the state has waived the dissemination of valuable money and became to distribute obligations insuring their value. Before this time money was valuable, made of precious metals. The first coins (silver melted on the bones) have appeared in Russia in the times of Ivan Grozny, in times of Mikhail Fedorovich Romanov they were not melted on the bones anymore and in the times of Tsar Peter copper was added to the coins. Russian economist of 18 century I.P. Pososhkov considered the cleanliness of coins as the cleanliness of image of tsar and honesty in the provision of products.

Currently, there are various types of loans, together constituting a developed credit system. Depending on the participants of credit transactions, there are international, banking, commercial and public credits. Depending on the purposes for which money is taken: consumer, auto, agricultural credits etc. Depending on the commitments, there are mortage and without mortage credits.