The Code of Hammurabi established the first laws protecting bank depositors from theft
The Code of Hammurabi, written nearly 3,800 years ago, established the first known consumer protection laws by holding bankers liable for the loss of deposited goods.
Written in 1760 BCE, the Code of Hammurabi contains specific statutes that governed the early banking activities of Babylonian temples and merchants. Law 125 mandated that if a deposit was stolen while in the custody of a banker, the banker was required to replace the loss in full to the owner. This early form of deposit insurance helped foster the trust necessary for a complex agrarian economy to function.
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