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:

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

    “In my short experience of human life, the outward obstacles, if there were any such, have not been living men, but the institutions of the dead.”
    —Henry David Thoreau (1817–1862)

    “Each man must have his “I;” it is more necessary to him than bread; and if he does not find scope for it within the existing institutions he will be likely to make trouble.”
    —Charles Horton Cooley (1864–1929)