Definition of the word bank statement

The term "bank statement" originated in the 16th century when banks first emerged as financial institutions. At that time, most people stored their wealth in the form of gold, silver, or other valuables in their homes or at 'house banks' run by merchants or goldsmiths. The practice of lending and borrowing money gained popularity during this time, with the goldsmiths serving as both safe-keepers for valuables and lenders. Customers entrusted their valuables to these banks in exchange for a receipt that served as evidence of their deposits. When customers requested their deposits, they presented these receipts to the bank, and the goldsmith would provide them with the corresponding amount of gold or silver. The receipts issued by goldsmiths to their clients for the valuables they deposited became known as 'bank notes' or 'bank bills.' They served as evidence of deposit with the bank and could be used as a substitute for cash. Banks started producing these notes on a large scale that was faster to produce than minting gold or silver coins, which was a time-consuming process. As the banking industry grew, and paper money replaced gold and silver as the primary medium of exchange, banks started issuing statements called 'passbooks' or 'registers' to their customers. These statements recorded the balance of a customer's account and provided a detailed summary of all transactions, including deposits, withdrawals, and interest earned. In the 20th century, as banking became automated, statements were transferred to paperless systems where customers could view and download their 'statements' from online banking portals. Today, the term 'bank statement' refers to an electronic document that summarizes an account holder's financial transactions during a specific period, be it monthly, quarterly, or annually. It provides account holders with a clear and detailed view of their account activity, including debits, credits, payroll deposits, interest earned, and fees charged by the bank.