Free Banking - Institutions

Institutions

Free banking includes:

  1. Free entry of banking and fiduciary producers
  2. Freedom to issue banknotes (promissory notes issued by a bank payable to bearer on demand).
  3. Freedom to accept money on deposit to current account, and to pay and collect cheques for customers
  4. Freedom to borrow money on term deposit and other forms of secured and unsecured borrowing
  5. Freedom to lend money and otherwise invest the bank's assets
  6. Freedom to provide guarantees, documentary letters of credit, performance bonds and to incur other off balance sheet exposures.

Read more about this topic:  Free Banking

Famous quotes containing the word institutions:

    “The whole history of civilisation is strewn with creeds and institutions which were invaluable at first, and deadly afterwards.”
    —Walter Bagehot (1826–1877)

    “The American people owe it to themselves, and to the cause of free Government, to prove by their establishments for the advancement and diffusion of knowledge, that their political Institutions ... are as favorable to the intellectual and moral improvement of Man as they are conformable to his individual and social rights.”
    —James Madison (1751–1836)

    “Men may die, but the fabric of our free institutions remains unshaken.”
    —Chester A. Arthur (1829–1886)