In 1596, the famous William Shakespeare wrote the play “The Venetian Trader,” in which he talked about the problems of a merchant who was trying to find a way to deal with a really large debt to a usurer of Jewish origin.
Nowadays, usurer has been declared illegal in much of the world, but borrowers have made their way through the various institutions specifically designed for this purpose and regulated by the state.
Banking and non-bank institutions today are competing to offer more attractive terms to consumers. Cash is given at attractive interest, and getting a loan is no longer so difficult.
What is usury and how did it occur?
This activity occurred in a medieval Europe where wealthy and educated Jewish families offered loans to people in the poorer circles of society.
In those days, lending money at a high price was quite normal and was far from illegal.
At times when most people were born and died in extreme poverty, and the world was governed by religion, banking was far less popular.
People have no way of finding the means to survive unless one of the rich oligarchic families is willing to give them money, of course, against the appropriate pay after that.
Today we live in capitalism, where banks are extremely important for the development and proper functioning of society. This activity is
crime, while the work of banks and other financial institutions in Europe is to a large extent controlled by the state and has a special place in national politics.
The emergence of capitalism
The capitalism in which we live today has emerged in Europe, and among the places where it is thriving nowadays are the London City and financial centers in Germany that are gaining ever greater weight.
Among the leaders in the development of capitalism, we can not miss the United States, which has played a leading role in the development of the financial sphere. The country is associated with the fact that there were some of the first clans of extremely wealthy people.
Families with legendary popularity include names such as Rothschild, Rockefeller, and Morgan. They relate to the development of banking, and skillful money management has made them one of the richest and most influential people in the world.
Legalization of the activity
Nowadays, in order to find a place under the sun, usury has changed so much that nothing has left of its original form. It has evolved to unrecognizableness in order to find its expression in non-bank financial institutions, whose activity is strictly controlled by the state.
There are laws such as consumer credit, which is designed to protect consumers. The state is pressing both banks and non-bank institutions to make services as user-friendly as possible.