Final answer:
The United States was the first nation to establish a modern banking system with the creation of the Second Bank in 1816, which aimed to stabilize the economy by providing a unified currency and later it was followed by the establishment of the Federal Reserve System in 1913.
Step-by-step explanation:
The first nation to have a modern banking system was the United States, which established a framework for modern banking after several iterations and significant debates over the role of banks and the constitutionality of a national banking system. After the War of 1812, the realization of the need for a stable currency led to the formation of the Second Bank of the United States in 1816.
Designed to help stabilize a banking system that was issuing unregulated paper money and to create a common currency, the Second Bank was chartered for twenty years and took on significant government involvement, including government deposits and the federal government's ability to appoint directors.
The Federal Reserve Act of 1913 further advanced the U.S. banking system by establishing a decentralized private banking system overseen by the federal government, which has endured as a significant achievement in American financial history.