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:
“Unless we maintain correctional institutions of such character that they create respect for law and government instead of breeding resentment and a desire for revenge, we are meeting lawlessness with stupidity and making a travesty of justice.”
—Mary B. Harris (1874–1957)
“So far as laws and institutions avail, men should have equality of opportunity for happiness; that is, of education, wealth, power. These make happiness secure. An equal diffusion of happiness so far as laws and institutions avail.”
—Rutherford Birchard Hayes (1822–1893)
“This, our respectable daily life, on which the man of common sense, the Englishman of the world, stands so squarely, and on which our institutions are founded, is in fact the veriest illusion, and will vanish like the baseless fabric of a vision; but that faint glimmer of reality which sometimes illuminates the darkness of daylight for all men, reveals something more solid and enduring than adamant, which is in fact the cornerstone of the world.”
—Henry David Thoreau (1817–1862)