Make banking boring again

Present-day banks are deviating a bit too much from the original deposit-loan scheme.

Banking should be boring—ideally. That is how it used to be in the good old days. Arguably, the early banking concepts began in the Middle Ages, when merchant banks financed grain production and trading. In the 13th and 14th centuries in Italy, institutions involved in the banking business took deposits and lent money. Initially, banking was strictly limited to accepting deposits at a certain interest rate and lending at a higher rate, earning the spread. Such credit creation remains the bread and butter of the banks. Yet, commercial banks these days provide a range of fee-based services, including safeguarding assets, mortgage loans, and investment banking.