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:

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

    “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)

    “You may melt your metals and cast them into the most beautiful moulds you can; they will never excite me like the forms which this molten earth flows out into. And not only it, but the institutions upon it are plastic like clay in the hands of the potter.”
    —Henry David Thoreau (1817–1862)