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:
“The only justification for repressive institutions is material and cultural deficit. But such institutions, at certain stages of history, perpetuate and produce such a deficit, and even threaten human survival.”
—Noam Chomsky (b. 1928)
“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)
“There are no institutions in America: there are only fashions.”
—H.L. (Henry Lewis)