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:
“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)
“With the breakdown of the traditional institutions which convey values, more of the burdens and responsibility for transmitting values fall upon parental shoulders, and it is getting harder all the time both to embody the virtues we hope to teach our children and to find for ourselves the ideals and values that will give our own lives purpose and direction.”
—Neil Kurshan (20th century)
“Our institutions have a potent digestion, and may in time convert and assimilate to good all elements thrown in, however originally alien.”
—Herman Melville (1819–1891)