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:

    “In abnormal times like our own, when institutions are changing rapidly in several directions at once and the traditional framework of society has broken down, it becomes more and more difficult to measure any type of behavior against any other.”
    —John Dos Passos (1896–1970)

    “Understanding the spirit of our institutions to aim at the elevation of man, I am opposed to whatever tends to degrade them.”
    —Abraham Lincoln (1809–1865)

    “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)