DEVELOPMENT OF MODERN BANKING

Despite the classical origin, banking in its modern form and structure started in
Britain when many of the Lambordary merchants came to England in the fourteen
century and settled in the part of the London now called Lombard street.
They were so resourceful that even the kings had to depend on them for loans
despite the fact that the church was firmly against usury. They dealt with not only
keeping the money in safe custody but also changed money for the travelers or merchants
engaged in foreign trade.
The business of changing money was so lucrative that King Edward III established
the office of Royal Exchanger for changing foreign money at a profit for the benefit of
the crown.