When we export banking to developing countries, are we providing useful services or financial weapons of mass destruction?As Greece spent January under threat of a bank run, and excited Athenians chatter about it, the problem with modern banks is illustrated by the word for them: trapezai. This, of course, means table. It predates the use of the Italian word banco – or bench – but describes the same thing.In ancient societies banks helped money function as a medium of exchange. Money changers sat at their tables in the market place and exchanged coins from foreign cities for those of their home city. The result was increased liquidity. Related: Financial systems: failing in the west but coming soon to a village near you? Related: Does microfinance really help poor people? Related: 14 ways to promote more responsible financial inclusion Continue reading...
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