Banking System

Your banking system is the complete set of whole life policies, policy loans, capital deployments, and loan repayment activity that together form your personal or family financial infrastructure.

The term "banking system" reflects the philosophy that whole life policies, used intentionally, allow you to perform functions traditionally done by banks — warehousing capital, lending to yourself, and cycling money through productive deployments — while keeping the growth and control in your own hands.

Your banking system in Policy Stack includes:

• All your whole life policies and their cash values
• All policy loans taken against those policies
• All capital deployments funded by those loans
• All repayment schedules and actual loan repayment activity
• The banking ledger, which records the complete history of capital events

System position is the summary metric for your banking system: total cash value minus total loan balances.

Related terms: System Position, Cash Value, Policy Loan, Capital Deployment, Capital Velocity