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:
“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)
“Is it not manifest that our academic institutions should have a wider scope; that they should not be timid and keep the ruts of the last generation, but that wise men thinking for themselves and heartily seeking the good of mankind, and counting the cost of innovation, should dare to arouse the young to a just and heroic life; that the moral nature should be addressed in the school-room, and children should be treated as the high-born candidates of truth and virtue?”
—Ralph Waldo Emerson (1803–1882)
“We as a nation need to be reeducated about the necessary and sufficient conditions for making human beings human. We need to be reeducated not as parents—but as workers, neighbors, and friends; and as members of the organizations, committees, boards—and, especially, the informal networks that control our social institutions and thereby determine the conditions of life for our families and their children.”
—Urie Bronfenbrenner (b. 1917)