Development of financial institutions: 600 - 1450 Regional and interregional interactions

During the 600-1450 period, the development of financial institutions was largely shaped by regional and interregional interactions.

In Europe, long-distance trade was made possible by the emergence of banks which provided a variety of financial services, such as currency exchange, deposit-taking, and credit-extension.

In the Islamic world, the earliest financial institutions were developed in the 8th century in the form of 'qirad' or partnership agreements, which allowed for the pooling of capital for investments.

The Indian subcontinent was home to a number of financial institutions such as the money changers, the mahajani, and the shroffs, which facilitated the circulation of coins and currency.

In East Asia, the development of financial institutions was heavily influenced by the Chinese merchant guilds, which provided loans and acted as brokers for international merchants.

The Silk Road connected Europe, the Middle East, and East Asia, facilitating the flow of goods, people, and ideas.

This resulted in the emergence of interregional financial networks, such as the Venetian merchant bankers, which provided financing for long-distance trade.

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