Institutions
Free banking includes:
- Free entry of banking and fiduciary producers
- Freedom to issue banknotes (promissory notes issued by a bank payable to bearer on demand).
- Freedom to accept money on deposit to current account, and to pay and collect cheques for customers
- Freedom to borrow money on term deposit and other forms of secured and unsecured borrowing
- Freedom to lend money and otherwise invest the bank's assets
- 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:
“It is the genius of our Constitution that under its shelter of enduring institutions and rooted principles there is ample room for the rich fertility of American political invention.”
—Lyndon Baines Johnson (1908–1973)
“Have we no culture, no refinement,—but skill only to live coarsely and serve the Devil?—to acquire a little worldly wealth, or fame, or liberty, and make a false show with it, as if we were all husk and shell, with no tender and living kernel to us? Shall our institutions be like those chestnut burs which contain abortive nuts, perfect only to prick the fingers?”
—Henry David Thoreau (1817–1862)
“The only justification for repressive institutions is material and cultural deficit. But such institutions, at certain stages of history, perpetuate and produce such a deficit, and even threaten human survival.”
—Noam Chomsky (b. 1928)