Free Banking.

[Harkback Union]

Banking is free in harkback union.
By that we mean that banks and entire financial sector is non-profit.

[New Hyannis]

There have been some intriguing answers here, and it seems Free Banking has few advocates in the NS world(s). Anybody else?

[Novus Niciae]

The banking sector is a government monopoly.
Private banks are not permitted.

[Albrionn]

Private banks are free to operate, and they are not heavily regulated. This cuts both ways, and banks and depositors can expect no help from the government if investments go bad.

There is a central bank in the form of the Imperial Bank of Albrionn. It is privately owned and operated, but the imperial government reserves the right to overrule the board's decisions, or even assume control directly. It is also forbidden to loan money to government institutions at interest. In exchange, the government must provide all necessary stimulus if needed, and the IBA has the exclusive right to mint currency. All transactions using currencies not issued by a sovereign state government are banned.

Free banking has some advocates, but most people consider free banking to be too chaotic.

[Hyfling]

The banking sector is the most tightly regulated sector in Hyfling, but considering this is Hyfling, where there are pretty much no regulations on business anyway, that's not saying much. About the only major law that differs between banks and regular business is foreign banks may not operate within the nation.

[TurtleShroom]

AMENDMENT THE TWENTY THIRD:
No tax shall be levied on the income of a corporation, on any capital gains by any creature or institution, on stocks and dividends, on loans, on pensions, or on any man’s estate.

Except to combat fraud, insider trading, and other forbidden acts, the stock exchange market may not be hampered with by any form of Congressional interference.

Free banking is the law of TurtleShroom and such an interference in the Free Market is not tolerated. Consequentially, this makes TurtleShroom a victim of crippling bank secrecy. The dishonest and criminal usage of for-profit banks means that TurtleShroomers hate banks and bankers, and as such, invest in Credit Unions instead.

[Rothschild]

Banks in the Grand Imperium of European Unity are privately owned but we also have the European Central Bank as lender of last resort.

[New Hyannis]

Right, we've had some very interesting answers. To be honest more nations have come out favorably to the concept of Free Banking than I had expected. Good. Anybody else?

[Victorious Decepticons]

Free banking is the law of TurtleShroom and such an interference in the Free Market is not tolerated. Consequentially, this makes TurtleShroom a victim of crippling bank secrecy. The dishonest and criminal usage of for-profit banks means that TurtleShroomers hate banks and bankers, and as such, invest in Credit Unions instead.

Ooh, how did we ev'a miss dis? We're always lookin' for ways ta streamline our opa'rations!
'Scuse me a moment...
[sets up account with 1 trillion NSD in it]
Dere. T'anks ta you, we won' hafta send all our loot back ta Cybertron ta sell. We can jus' unload it onta da petrol markets 'n drop da cash in a nice, safe spot until da time is right! Dat'll save oodles o' dough on shippin' costs!

~Masher
~CEO
~Interplanetary Oil Procurement Corporation

[The Batorys]

Having read this, what is the status of Free Banking in your nation? Legal, but now dead. It was not replaced with regulations or a central bank. Instead, we use a cash economy.

Is it in use? See above. Of course, if you ask around, you'll find plenty of people who'll pipe up and CLAIM TO have banks you can put your money into. There are also plenty of people willing to sign away their first-built to entice you to loan to them. As for the veracity of the claims? Put it like this, you can put your money IN, but...

The same goes for the loans. Lotsa luck collecting that first-built when his Coder doesn't pay up. He'll just fly away laughing, along with daddy.

If not, was it ever, Yes. We buried it alive under a mountain of corruption within a month. This really isn't the place for any kind of business where you have to just trust someone to not fly away with your money and leave you with nothing but peals of laughter for a receipt. As for why? Put it like this, our name sounds nice and snappy, but that's not the only reason we chose it.

and does it have any supporters presently? Lots of people would love it if suckers would outright hand them money again, and lots of other people would love it if suckers would loan them money again!

Unfortunately, the domestic sucker pool is completely dried up when it comes to the financial sector. We've run every possible banking, loan, stock, and related scam into the ground and then some. Of course, that refers to doing business HERE. We do plenty of banking "business" with other nations, much of it going through the Decepticon Interplanetary Bank.

Yes, we did say we didn't have a central bank. And we don't. But we're certainly smart enough to call our government-run currency counterfeiter, artificial electronic transfer transaction generator, and always-approved credit card acceptance code provider a name that will get half-asleep foreign nations to assume wrongly. Of course, that's not what we officially tell foreigners!

One could go into the system of banking in the Batory Empire in great depth, exploring what regulations are placed on it, and more importantly, why banking is more regulated than other industries, and why the Batory clan keep tight control on the supply of money and how it is manipulated.... or one could simply read the above information from Victorious Decepticons.

The Batory Empire views "Free Banking" as ludicrously unstable, and suitable only if you actually want to live in a society like the Victorious Decepticons (though, who knows, perhaps you do want to; they certainly seem to like it). The Batory clan would prefer not to, and so don't view "freedom" as worth the absurd instability and opportunity for abuse that "Free Banking" is prone to.

[New Hyannis]

Private banks are free to operate, and they are not heavily regulated. This cuts both ways, and banks and depositors can expect no help from the government if investments go bad.

I actually find this a sensible response. The state does not trifle with the banks needlessly, but neither does it act to protect them if they act foolishly.

I am reviving this thread, in case anybody else wishes to read the OP and write a response. Please do not simply post randomly. Read the OP and consider the questions asked with care.

[Kirav]

Free banking is practiced in the Kiravian colony of Daridia, and while the Kiravian saar and the Federally-minted bullion-backed currencies are legal tender in Daridia under Federal law, there are around 20 different private currencies circulating in Daridia at any given time. Most local banks in Daridia have not opted-in to Federal deposit insurance programs.

Elsewhere in the Kiravian Federacy, the banking sector is subject to the normal degree of regulation to be expected from a centre-right capitalist government.

[The Northern Kingdoms]

The following entities rule the banking industry of the Northern Kingdoms. Listed with these entities are banks owned :

-Lejonhjärta Banking Corp.* (Bank of the Northern Kingdoms**, Lejonhjärta Bank, Guilder Bank***, Serafer Bank***)
-Svenar Banking Corp.* (Bank of the Northern Kingdoms**, Svenar Protection Bank, Crownguard Bank***, Guilder Bank***)
-NorthBank Corp.* (Bank of the Northern Kingdoms**, NorthBank, Crownguard Bank***, Serafer Bank***)
-Ministry of Economy (Bank of the Northern Kingdoms**, Central Bank of the Northern Kingdoms****)

*The following corporations are members of the Northern Kingdom Union of Conglomerates
**The Bank of the Northern Kingdoms is a private-public partnership (PPP) that aims to build a nationalized bank.
***Formed from a union.
****It's the central bank of the Northern Kingdoms, meaning it manages the currency, money supply, and interest rates of the Northern Kingdoms.

As for free banking, it's there, albeit regulated.

[Novus Niciae]

Free banking is non-existent , there are no private banks in the republic, and the central bank functions both as a reserve bank and a normal bank.

Companies are allowed to issue a limited form of scrip currency or vouchers that must be backed with their face value in credits and the bearer must be able to exchange them without purchase for credits on demand. And Scrip can not be sold for more than its face value.

[Phasma]

It is present, and in fact highly successful and influential into the economic success of Phasma's economy. As a result of this, competition to invest and give out loans is fierce and the citizens of Phasma enjoy low interest rates and an increased ease to start a business.

[Living Stones]

The official fiat currency is the Pound. Only the government can manufacture it & government employees must be paid in it. Inflation is strictly controlled, making the Pound one of strongest currencies in the world.

However, there are no restrictions on currency use. Any locality, business, or person can issue their own currency, & any currency from anywhere in the world can be used.

There are currently hundreds of local & private currencies produced in Living Stones, w/ most towns & businesses making their own. These derive their value either from being pegged to gold, silver, or a fiat currency, or function as scrip. For example, many towns require public transport tickets to be paid in the local currency, & many private companies require cafeteria food to be paid in the scrip they pay their employees. Individuals can also produce their own currency, which often takes the form of gold, silver, or copper coins.

Private businesses are not even required to accept the Pound, but can accept any currency of their choosing, which is almost always the United States Dollar, as Living Stones is near to though much smaller than the US. The average person here has a bank account in Pounds or corporate money, which they might exchange for the local currency to ride the bus, though would most often exchange for USD when going shopping, making USD the de facto currency.

[Singaporean Transhumans]

Obsolete. When you have too much of everything that comes in infinite numbers you don't need currency, so the banks naturally shut down.

Mass Fabricators and Molecular Assembly machines help everything.

[New Hyannis]

Free banking is practiced in the Kiravian colony of Daridia, and while the Kiravian saar and the Federally-minted bullion-backed currencies are legal tender in Daridia under Federal law, there are around 20 different private currencies circulating in Daridia at any given time.

So in Daridia the system is taken so far as to permit separate alternative currencies? Very intriguing. Do banks and credit unions agree to accept each other's notes?

[Vedastia]

All banks in Vedastia are nationalized.

[Wintanceastre]

Free Banking is illegal. The banking industry is heavily regulated by the Ministry of Finance.

[Auroya]

All banks are nationalized. It is a natural monopoly.

[Grand Britannia]

Monetary Policy is dictated by the Commonwealth Reserve System and the banking system regulated by the Ministry of Finances and Commerce.

[Neo Rome Republic]

All banks are Nationalized and under jurisdiction of the Department of Treasury.

[Eschatopolis]

There isn't any banking, at least no form of "modern" banking, in Eschatopolis due to it's unique economic arrangement.

[Chelta]

We effectively have free banking. Chelta has a national currency, which the government deals in and in which taxes are paid, but it is not legal tender, and banks freely issue their own currencies for private use. We have no central bank, and private banks are subject to next to no statutory regulations.