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 whole history of civilisation is strewn with creeds and institutions which were invaluable at first, and deadly afterwards.”
—Walter Bagehot (1826–1877)
“With the breakdown of the traditional institutions which convey values, more of the burdens and responsibility for transmitting values fall upon parental shoulders, and it is getting harder all the time both to embody the virtues we hope to teach our children and to find for ourselves the ideals and values that will give our own lives purpose and direction.”
—Neil Kurshan (20th century)
“The way in which men cling to old institutions after the life has departed out of them, and out of themselves, reminds me of those monkeys which cling by their tails—aye, whose tails contract about the limbs, even the dead limbs, of the forest, and they hang suspended beyond the hunter’s reach long after they are dead. It is of no use to argue with such men. They have not an apprehensive intellect, but merely, as it were a prehensile tail.”
—Henry David Thoreau (1817–1862)