The fourth of December is designated as International Day of Banks, which is celebrated all around the world. The United Nations General Assembly passed resolution 74/245 on the 19th of December 2019, which established December 4 as the International Day of Banks.
This day is celebrated in recognition of the significant potential of multilateral development banks and other international development banks in financing sustainable development and providing know-how, as well as recognition of the vital role that the banking systems in the Member States play in contributing to the improvement of the standard of living in their respective countries.
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History Of International Day Of Banks
The General Assembly of the United Nations decided to recognise the significance of banks and the role they play in the economic growth and development of the communities in which they operate by establishing International Day of Banks.
Financial institutions can be referred to as banks. They will collect money from the general public in the form of savings or current deposits, which they will then lend to individuals who are in need of the money and who can provide some type of collateral.
The use of credit in the barter system, along with the provision of collateral, is considered to be the origin of the modern notion of banking. During the Renaissance, affluent Italian families established institutions that would later form the foundation of modern banking, and these institutions quickly expanded across Europe.
Before there were banknotes, merchants would keep their gold in the safekeeping of bankers until banks were more ingrained in the financial systems of their communities.
In today’s world, banks are responsible for many different types of services on behalf of their customers, including personal, corporate, investment, transactional, insurance, consumer, and trade finance.
Development banks do not take deposits from members of the general public; instead, they provide commercial and public institutions with financial assistance in exchange for credit and direct government investments.
Instead of focusing on making a profit, the major purpose of development banks is to act in the general public’s best interest. The United Nations (UN) established the International Day of Banks in recognition of the significant role that development banks play in contributing to the overall development as well as the monetary well-being of an area.
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Theme For International Day Of Banks 2022
The goal of achieving sustainable development goals while also improving the global financial architecture will be the focus of International Banks Day in 2022.
One of the purposes of the United Nations is to alleviate global difficulties such as poverty and the search for a financially stable environment for the entire world.
This subject focuses on one of those goals. These objectives represent the blueprints for achieving success, which include maximising one’s education and selecting the appropriate line of work.
This proposal is a step toward the establishment of collective governance mechanisms at the international level, with the goal of ensuring the efficient operation of the global economic and monetary system.
Why Do We Celebrate International Day Of Banks?
The UN General Assembly declared December 4 to be the International Day of Banks in a resolution that was approved on December 19, 2019. The resolution, according to xinhuanet, emphasized the relevance of financial inclusion in the international financial system at all levels and the necessity of taking it into account as a policy aim in financial regulation in accordance with national law.
According to the resolution, the UNGA also acknowledges the crucial role that financial institutions play in raising the standard of living at the national level.
According to e-zigurat, Bitcoin altered the world eleven years ago by pioneering secure, affordable, peer-to-peer transactions without middlemen. Despite its myriad benefits, blockchain is still frequently and primarily connected with the cryptocurrency world as the technology that gave us Bitcoin over the years.
The major distinction between traditional fiat currencies like euros, dollars, and pounds and cryptocurrencies like bitcoin and ether is that the latter are decentralised, worldwide digital currencies that are not under the control of banks and are not backed by a centralised authority. As a result, government intervention and control are not an issue with cryptocurrencies.
Without these fundamental differences, fiat currency and cryptocurrencies can both be referred to as money or currency. Both cryptocurrency and fiat money can be used to make purchases of products and services. Supply, demand, work, and other economic factors determine the worth of both.
However, businesses and people operating in areas where banks and other financial institutions are under the jurisdiction of the government benefit greatly from the financial independence and freedom that cryptocurrencies bring to the table.
Additionally, given that only they have access to and complete control over the cash, utilizing and trading cryptocurrencies increases customers’ financial literacy. It is now appropriate to adopt cryptocurrencies. The value of cryptocurrencies as an asset class is still disputed by certain financial services executives, according to bcg, and some cryptocurrencies have occasionally seen their market capitalization decline (including this year).
The most well-known cryptocurrency, Bitcoin, has been linked to criminal activity like the Twitter hack of July 2020, which has caused cryptocurrencies to undergo volatility during the COVID-19 issue and damaged their reputation. Cryptocurrencies are a vehicle with excellent possibilities, despite this. While providing better efficiency, less red tape, and more openness than traditional banking products, they have the potential to exceed them.
Many users believe that using cryptocurrencies is more convenient than using traditional forms of payment since they operate outside of the banking system and its rules. The two main benefits of using cryptocurrencies over standard bank transfers are that they are less expensive and don’t require a middleman.
Around the world, a diverse range of government entities that each have their own rules and regulations have taken action to regulate cryptocurrencies and associated blockchain technologies. A wide range of opinions exist among nations. Some have extremely strong regulations, banning or heavily regulating both cryptocurrency exchanges and ICOs.
Even if a merger of banking and cryptocurrency systems is not on the horizon, it is obvious that banks must learn how to play the new game while cryptocurrencies must adjust to the new laws and regulations.
They must abandon some of their more established operational procedures and take on a more flexible role as an institution. Perhaps employing blockchain technology in their current operations would enable banks to stay current and update their operating models.
Despite all of this activity, many financial officials are still unsure about how to utilise digital currencies to their fullest potential, how to navigate the difficulties they present, and how to effectively manage transactions into and out of fiat currency.
Fortunately, banks still have time to stand out in this market. Financial institutions will be well-positioned to dominate their industries in their areas or perhaps globally if they invest in self-education now and build well-thought-out offerings.
How To Celebrate International Day Of Banks?
What to do on World Banks Day, if you’re looking for ideas? Then, we have some insightful and practical suggestions for you and your pals to enjoy this special day.
Study up on development banks
Instead of taking deposits, development banks assist public and private organisations in achieving their financial objectives. The opportunity presented by the day allows us to read about the banking institutions’ strategies and look for creative solutions that will enable us to make more effective recommendations for a more effective monetary system.
Get a discussion going
Initiate a discussion regarding financial tools with the help of your local development bank and community leaders. The knowledge and resources of development banks can be shared on this day. To assist your leaders in the future, share with them some well-known and crucial bank policies.
Assemble resource materials
Thank you for letting people know about development banks and what they do. They may provide services that your community may find useful. In your community, explain the benefits of banks and show people how to benefit from them.
Post messages and slogans
On this particular occasion, everyone is free to post slogans and messages on social media sites like Facebook, Twitter, and Instagram with their friends and family. By using slogans like this, you may inspire anyone.
- One small step leads to a better future
- Small deposits add up, therefore we anticipate receiving a modest deposit.
- Banking institutions alter the world rather than the business model.
- Think wisely and bank with us.
- Over a mattress, a bank is a safer place for money to be.
Conclusion
In addition to celebrating and highlighting human accomplishments, International Day and Week provide an opportunity to raise awareness of issues facing the world and to organise political will and funding to address them. The United Nations established International Day at its inception and has since recognised it as a potent lobbying tool. It also signifies increased UN compliance.
A comprehensive, all-inclusive, and revolutionary set of sustainable development goals was established by the General Assembly in 2015. In order to highlight the contribution that development banks make to sustainable development, the General Assembly of the United States declared it an international day in 2019 with Resolution 74/245.
A comprehensive set of people-centered, universal, and transformative sustainable development goals and objectives was established by the General Assembly in September 2015 with the intention of having them all fully implemented by 2030. The resolution discusses the necessity of financial inclusion as a national priority and a legislative requirement for financial regulation, as well as the relevance of inclusion in the global financial system at all levels.
In order to highlight the role that banks play in promoting and attaining sustainable development, the resolution further requests that the world community observe International Banking Day. A productive national development bank can assist nations in creating financing alternatives for focused investments in sustainable development. Such banks are regarded as an integrated national financing system that is in harmony with their objectives overall.