I like terms and definitions as a place to start an understanding of a complex system. I believe if the politicians are going to bringing issues to the people as leverage to elections, then citizens need to know exactly how they are being mislead. See, these are complicated systems and what will transpire here will not doubt confuse as much as clarify. So, it simply is amazing to me an entire political party hangs their hat on something their constituents have little knowledge of with absolutely less expertise.
Banks
A bank is an establishment for the custody, loan, exchange, for the extension of credit, and for facilitating the transmission of funds.
The first bank was The Bank of England established on 27 July 1694
Thrifts, otherwise known as Savings and Loan would come much later. See the early banks weren't regulated. The Savings and Loan basically took their place when banks became financial institutions rather than customer centered. The Savings and Loans or Thrifts are unregulated. It is noteworthy that when the Saving and Loans collapsed in 1985 it was due to Real Estate loans to consumers and was basically Ponzi scheme. A review of that collapse is noted on this PDF (click here).
The first savings bank in the United States was the Philadelphia Saving Fund Society. It was established on December 20, 1816 and dissolved in 1992.
In the United Kingdom, the first savings bank was founded in 1810 by the Reverend Henry Duncan, Doctor of Divinity, the minister of Ruthwell Church in the Dumfriesshire, Scotland.
Credit Unions
Today, they do about the same thing as banks, except every member is a voting member. So, if a person deposits money into a credit union they are considered members and not customers. At one time credit unions didn't carry mortgage loans. They were primarily short term in duration, like a car loan. A few years.
The first cooperative societies or unions providing credit were founded in Germany and Italy in the mid-19th century. Credit Unions tended to be the answer to many nations in Europe as the banks dominated much of what occurred with Great Britain. The first North American credit unions were founded by Alphonse Desjardins in Lévis, Quebec (1900), and Manchester, N.H. (1909). The Credit Union National Association (CUNA), a federation of U.S. credit unions, was established in 1934 and became a worldwide association in 1958.
Insurers
Insurers produce contracts to make certain the future is more certain for anyone who subscribes to that investment, but, it long terms as in life insurance or short term as in "Lloyd's of London." Lloyds of London started in a tavern where shipping merchants gathered on a regular basis. It was there underwriting began. That was 1680s.
nsurance has been with societies since the beginning of time. It wasn't formal as in a contract, but, RISK was always estimated and precautions taken. China would send merchandise in many ships through their rivers to insure the trip was survived by more than not.
Some say Robert Hayman in 1628 wrote the first insurance two policies ever for a wealthy Londoner, for his shipping and his life.
But, the type of insurance we know today actually had it's beginnings after the Great Fire of London which lasted from September 2 through 5, 1966.
There is an interesting accounting of the development of that first insurer at the Risk and Insurance site. (click here)
Today when one thinks of insurance it is in a contract. Insurance is a standard way of hedging against adverse consequences. As a matter of fact insurance was discovered by government as a way to protect citizens and legislated in it's necessity.
Insurance is a really interesting venture. Insurance policies are relationships by people with a company. A trusting relationship. It is suppose to be sustainable and perpetual. The need for an established culture of investment is a requirement, otherwise, the trust between the insurer and the insured disappears.
Banks
A bank is an establishment for the custody, loan, exchange, for the extension of credit, and for facilitating the transmission of funds.
The first bank was The Bank of England established on 27 July 1694
Thrifts, otherwise known as Savings and Loan would come much later. See the early banks weren't regulated. The Savings and Loan basically took their place when banks became financial institutions rather than customer centered. The Savings and Loans or Thrifts are unregulated. It is noteworthy that when the Saving and Loans collapsed in 1985 it was due to Real Estate loans to consumers and was basically Ponzi scheme. A review of that collapse is noted on this PDF (click here).
The first savings bank in the United States was the Philadelphia Saving Fund Society. It was established on December 20, 1816 and dissolved in 1992.
In the United Kingdom, the first savings bank was founded in 1810 by the Reverend Henry Duncan, Doctor of Divinity, the minister of Ruthwell Church in the Dumfriesshire, Scotland.
Credit Unions
Today, they do about the same thing as banks, except every member is a voting member. So, if a person deposits money into a credit union they are considered members and not customers. At one time credit unions didn't carry mortgage loans. They were primarily short term in duration, like a car loan. A few years.
The first cooperative societies or unions providing credit were founded in Germany and Italy in the mid-19th century. Credit Unions tended to be the answer to many nations in Europe as the banks dominated much of what occurred with Great Britain. The first North American credit unions were founded by Alphonse Desjardins in Lévis, Quebec (1900), and Manchester, N.H. (1909). The Credit Union National Association (CUNA), a federation of U.S. credit unions, was established in 1934 and became a worldwide association in 1958.
Insurers
Insurers produce contracts to make certain the future is more certain for anyone who subscribes to that investment, but, it long terms as in life insurance or short term as in "Lloyd's of London." Lloyds of London started in a tavern where shipping merchants gathered on a regular basis. It was there underwriting began. That was 1680s.
nsurance has been with societies since the beginning of time. It wasn't formal as in a contract, but, RISK was always estimated and precautions taken. China would send merchandise in many ships through their rivers to insure the trip was survived by more than not.
Some say Robert Hayman in 1628 wrote the first insurance two policies ever for a wealthy Londoner, for his shipping and his life.
But, the type of insurance we know today actually had it's beginnings after the Great Fire of London which lasted from September 2 through 5, 1966. There is an interesting accounting of the development of that first insurer at the Risk and Insurance site. (click here)
Today when one thinks of insurance it is in a contract. Insurance is a standard way of hedging against adverse consequences. As a matter of fact insurance was discovered by government as a way to protect citizens and legislated in it's necessity.
Insurance is a really interesting venture. Insurance policies are relationships by people with a company. A trusting relationship. It is suppose to be sustainable and perpetual. The need for an established culture of investment is a requirement, otherwise, the trust between the insurer and the insured disappears.
