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:

    “Let us stun and astonish the intruding rabble of men and books and institutions by a simple declaration of the divine fact. Bid the invaders take the shoes from off their feet, for God is here within.”
    —Ralph Waldo Emerson (1803–1882)

    “Schools are generally feminine places, institutions where conformity is valued, taught largely by conformist women.”
    —Judith M. Bardwick (b. 1933)

    “There are no institutions in America: there are only fashions.”
    —H.L. (Henry Lewis)