History of banking in Malta

Banking emerged in primitive form through deposit-taking and money-changing activities, with temples and merchants in Mesopotamia, Greece, and Rome receiving deposits, issuing loans, and facilitating currency exchange to support trade and agriculture. The Middle Ages and Renaissance saw the organisation and commercialisation of banking, particularly in Italian city-states such as Florence and Venice, where merchant banks developed innovations like bills of exchange and branch networks to finance long-distance trade. The early modern and industrial era witnessed the institutionalisation of banking with the creation of central banks and more structured credit systems, exemplified by institutions such as the Bank of Amsterdam and the Bank of England, as well as innovations like fractional reserve banking and increased lending to governments and industries. The present-day global banking landscape is defined by rigorous regulation, international integration, and technological advancement, with banks functioning transnationally, adjusting to financial upheavals, and progressively depending on digital platforms, fintech, and artificial intelligence for service delivery and risk management.