History of Banking Timeline

Sweden's Riksbank, founded in 1668 from the private Stockholms Banco, is generally considered the world's oldest surviving central bank. It issued the first modern banknotes and managed the state's finances.

Image source: Sveriges Riksbank

The Bank of England was established by royal charter to raise funds for the government's war against France. It became the model for modern central banking, issuing banknotes, managing public debt, and eventually acting as lender of last resort.

Image source: Bank of England

Championed by Alexander Hamilton, the First Bank of the United States was chartered to manage government finances, issue a stable currency, and support commercial growth, sparking debates over federal power that shaped American banking politics.

Image source: First Bank of the United States

A severe financial crisis triggered by speculative land sales, the collapse of banks after Andrew Jackson's destruction of the Second Bank of the United States, and a sharp contraction of credit plunged America into a deep depression lasting years.

Image source: Panic of 1837

The failure of Jay Cooke & Company over railroad financing set off a global financial panic. Stock exchanges closed, banks failed, and a prolonged economic depression swept through Europe and North America, reshaping banking regulation debates.

Image source: Panic of 1873

Following recurring banking panics, Congress passed the Federal Reserve Act establishing the Federal Reserve System. The Fed was designed to provide an elastic currency, act as lender of last resort, and supervise banks, transforming American finance.

Image source: Federal Reserve

Delegates from 44 nations met at Bretton Woods, New Hampshire, to design the postwar monetary system. They created the IMF and World Bank and pegged currencies to the US dollar, which was convertible to gold, anchoring global finance for decades.

Image source: Bretton Woods Conference

President Richard Nixon suspended the dollar's convertibility into gold, effectively ending the Bretton Woods system. Currencies began floating freely, ushering in an era of exchange rate volatility and expanding the role of central banks in managing monetary policy.

Image source: Nixon shock

The Basel Committee on Banking Supervision issued the first Basel Accord, requiring banks to hold capital equal to a percentage of their risk-weighted assets. It marked the beginning of coordinated international bank regulation.

Eleven European Union countries adopted the euro as an accounting currency, with physical notes and coins following in 2002. The European Central Bank assumed responsibility for monetary policy across the eurozone, reshaping European banking.

Image source: Euro

In response to the 2008 crisis, the Basel Committee introduced Basel III, raising capital requirements, adding liquidity coverage ratios, and introducing leverage limits to make banks more resilient to financial shocks.

The European Central Bank cut its deposit rate below zero, followed by Japan, Switzerland, and others. Negative rates were an unconventional tool to stimulate lending and inflation, profoundly affecting bank profitability and monetary policy thinking.

Image source: Interest rate

The collapse of US stock prices triggered a wave of bank failures and a worldwide economic depression. Thousands of banks failed as panicked depositors withdrew funds, exposing weaknesses in the fragmented American banking system.

Image source: Wall Street Crash of 1929

As part of the New Deal response to the Great Depression, the Glass–Steagall Act separated commercial and investment banking, created the FDIC to insure deposits, and aimed to prevent the conflicts of interest blamed for bank failures.

Image source: Glass–Steagall legislation

Frank McNamara founded Diners Club, introducing the first multipurpose charge card usable at multiple restaurants in New York. This innovation paved the way for the modern consumer credit card industry.

Image source: Diners Club International

Barclays unveiled the world's first automated cash dispenser at its Enfield branch, invented by John Shepherd-Barron. The ATM revolutionized retail banking by giving customers 24-hour access to their money without visiting a teller.

Image source: Automated teller machine

Banks from 15 countries created SWIFT, a cooperative messaging network enabling secure, standardized communication for cross-border payments. It became the backbone of international financial transactions worldwide.

Congress repealed key provisions of Glass–Steagall, allowing commercial banks, investment banks, and insurance companies to consolidate. This enabled megabanks like Citigroup and contributed to the environment preceding the 2008 crisis.

Image source: Gramm–Leach–Bliley Act

The bankruptcy of Lehman Brothers amid the subprime mortgage meltdown ignited a global financial crisis. Banks worldwide required massive bailouts, credit markets froze, and the crisis prompted sweeping reforms of banking regulation and supervision.

Image source: Lehman Brothers

Satoshi Nakamoto published the Bitcoin whitepaper describing a decentralized digital currency secured by blockchain technology. Bitcoin challenged traditional banking models and inspired thousands of cryptocurrencies and blockchain-based financial innovations.

Image source: Bitcoin