Posted in Finance, Accounting and Economics Terms, Total Reads: 396
Definition: Time Banking
A time bank is an interchange based work trading system in which the principal currency is time. A participant ‘deposits’ the time by working or providing service for social support to others and can ‘withdraw’ the same amount of time when he needs support or help.
The deposit only considers the amount of time by a participant regardless of the kind of work done or the skill required to do that work. This equality is anticipated to foster ties in the community by valuing all the contributions equally. These systems are divided in three categories named person-person, person-agency and agency-agency.
Person-person setting can be a standalone locally based system where individuals work for each other. A person can do shopping for an elderly and in return get somebody to babysit his children later. In person-agency setting, an organization like hospital is involved. A patient may get free service after leaving the hospital and the hospital will receive free cooking or shopping later. In agency-agency setting two organizations or groups help each other like sports club and legal advisors.