Banks originated as an alternative to burying your money in a clay pot out in the sheepfold. In most ancient records, the concept of a bank as anything other than a communal effort to protect wealth from raiders is spotty.

The next major change in banking was the concept of charging interest for a loan. For the longest period of time, laws against Usury kept this from happening in Christian countries – an interpretation of the Bible forbade charging interest on loans. Later, this expanded to paying people interest to hold deposits within the bank.

Today, banks have been synonymous with bank loans. Nearly every individual who has a bank account has a bank loan of some sort. And living up to this reputation, the modern day banks offer loans for every imaginable need or requirement.

All of which comes at a nice interest though! Speaking for myself, my first relationship with a bank was when I opened my first savings account. But it has been the bank loans that have made me dependent on the bank for my survival.

I took my first bank loan when I wanted to buy a car. It was an auto bank loan or a bank loan given for the specific purpose of buying a vehicle. My next bank loan was taken when I wanted to buy a condo.

Nobody in the present day and age (unless they are born to money) has enough money lying around to make big ticket purchases like a condo or house, without having to resort to a bank loan.

A typical bank loan for a home runs 15 to 30 years, and most people will end up accruing equity in a home, paying interest on it, and otherwise, becoming home owners in fee simple.

There are also other types of bank loans issued for various purposes. A personal bank loan will enable you to buy a broad spectrum of goods or services. This sort of bank loan will come in handy for repairs, renovations, marriages, celebrations, events or any other expenses that you don’t have cash lying around for.

Another type of loan is the student education loan. Other debt that gets thrown at students are loans to pay for computers and cars and stereos, plus unsecured debt via credit cards.

The most common kind of bank loan is one you carry in your wallet. It’s your credit card. Yes, even a credit card is a bank loan. Many banks even offer consolidation loans to pay off your credit card debt.

Most loans issued worldwide to consumers are housing and mortgage loans. They’re a tiny fraction of the business debt market, where the entirety of the financial industry runs off of leveraging assets by taking out loans.

To give a sense of perspective, the total business loans issued are 99.99% of all the debt issued in the world. And are one reason why the financial bailout of the investment banks was such a high priority to Congress.

If those loans dry up, the repercussions are terrifying. Business worldwide would collapseand given the way the banking system is run, it may yet happen. Which may make the original meaning of the word ‘bank’ the most important one of all.