In his book "The Ascent of Money: A Financial History of the World," Niall Ferguson highlights the fundamental nature of credit within banking. He asserts that credit encompasses the total assets held by banks, primarily through the loans they extend to individuals and businesses. This perspective emphasizes the vital role that lending plays in the financial system, shaping economies and influencing growth.

Ferguson's analysis reveals that credit is not just a financial instrument; it is the backbone of banking operations. By understanding credit as the sum of banks' assets, we gain insight into how financial markets function and the importance of lending in facilitating economic activity. Ultimately, this understanding positions credit at the core of economic development and financial history.