A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Whereby banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as fractional-reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities.
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more mutually agreeing parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. A binding agreement between actors in international law is known as a treaty.
In finance, a loan is the transfer of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
Islamic banking, Islamic finance (مصرفية إسلامية masrifiat 'iislamia ), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).
The Late Middle Ages, late medieval period, or Lower Middle Ages was the period of European history lasting from AD 1350 to 1500. The Late Middle Ages followed the High Middle Ages and preceded the onset of the early modern period (and in much of Europe, the Renaissance). Around 1350, centuries of prosperity and growth in Europe came to a halt. A series of famines and plagues, including the Great Famine of 1315–1317 and the Black Death, reduced the population to around half of what it had been before the calamities.
Islam (ˈɪslɑːm; ۘالِإسْلَام, al-ʾIslām ʔɪsˈlæːm, ) is an Abrahamic monotheistic religion centered on the Quran and the teachings of Muhammad. Adherents of Islam, called Muslims, number approximately 2 billion globally and are the world's second-largest religious population after Christians. Muslims believe that Islam is the complete and universal version of a primordial faith that was revealed many times through earlier prophets such as Adam (believed to be the first man), Ibrahim, Moses, and Isa (Jesus), among others.
A mount of piety is an institutional pawnbroker run as a charity in Europe from Renaissance times until today. Similar institutions were established in the colonies of Catholic countries; the Mexican Nacional Monte de Piedad is still in operation. The institutions called Monte di Pietà originated in 15th-century Italy, where these institutions gave poor people access to loans with reasonable interest rates. It used funds from charitable donors as capital, and made loans to the poor so they could avoid going to exploitative lenders.
Thomas Aquinas (əˈkwaɪnəs, ; Tommaso d'Aquino; 1225 – 7 March 1274) was an Italian Dominican friar and priest, an influential philosopher and theologian, and a jurist in the tradition of scholasticism from the county of Aquino in the Kingdom of Sicily, Italy. Thomas was a prominent proponent of natural theology and the father of a school of thought (encompassing both theology and philosophy) known as Thomism. He argued that God is the source of the light of natural reason and the light of faith.
The Italian Renaissance (Rinascimento rinaʃʃiˈmento) was a period in Italian history covering the 15th and 16th centuries. The period is known for the initial development of the broader Renaissance culture that spread across Western Europe and marked the transition from the Middle Ages to modernity. Proponents of a "long Renaissance" argue that it started around the year 1300 and lasted until about 1600. In some fields, a Proto-Renaissance, beginning around 1250, is typically accepted.
The Medici Bank (Italian: Banco dei Medici ˈbaŋko dei ˈmɛːditʃi) was a financial institution created by the Medici family in Italy during the 15th century (1397–1494). It was the largest and most respected bank in Europe during its prime. There are some estimates that the Medici family was, for a period of time, the wealthiest family in Europe. Estimating their wealth in today's money is difficult and imprecise, considering that they owned art, land, and gold.
