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Free banking

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What Is Free Banking, and Why Should I Care? | Learn Liberty

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Banking Job In Dubai FREE VISA FREE TICKET

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Worry-Free Banking

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Fee Free Banking

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How did Medieval Banking Work? (Short Animated Documentary)

Free banking is a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency (banknotes). In a free banking system, market forces control the supply of total quantity of banknotes and deposits that can be supported by any given stock of cash reserves, where such reserves consist either of a scarce commodity or of an artificially limited stock of "fiat" money issued by a central bank. In the strictest versions of free banking, however, there either is no role at all for a central bank, or the supply of central bank money is supposed to be permanently "frozen." There is, therefore, no agency capable of serving as a "lender of last resort" in the usually understood sense of the term. Nor is there any government insurance of banknotes or bank deposit accounts.