Kalistani Law Library- Kalistan Imperial University, Kaliburg, Grand Duchy of Ananto

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Enacting Laws of the Empire of Ananto and Kalistan

Kalistani Imperial Bank Act- 4406 (Amended 5662)

This act has been amended to reflect modern Political Realities

A Charter for the Imperial Bank of Kalistan

Article 1
The Imperial Bank of Kalistan shall be created. Upon passage of this Charter, all large banks of national scope will be immediately Nationalized and dissolved, and all assets will be liquidated to be distributed to depositors, shareholders and bond holders, in that order. All individual Deposits not covered from the liquidation process will be reimbursed by the Imperial Treasury. Small Banks, with a capitalization of less than 10 Million KRB, Credit Unions, and private investment banks will not be nationalized or liquidated. Any excess produced by liquidation, after interested parties are repaid their investment without interest, will be transferred to The Imperial Bank of Kalistan as nationalized Assets.

Article 2
The Imperial Bank of Kalistan shall receive an initial capitalization of 1 Billion KRB, in the form of securities. Of this amount, 51 percent will be purchased outright by the Kalistani Government from the Empire's sizeable monetary reserves, while 49 percent will be put up for auction for private investors. Foreign Investors may purchase stock in The Imperial Bank of Kalistan, but may not vote. In the event that stocks are still at large, the Kalistani Government will purchase those shares and will be permitted to sell them on a first come-first serve basis. Additional rounds of capitalization are permitted at a future date, but the Kalistani National Government is never permitted to lose its majority interest in the bank, through stock sales, transference or sell-offs. Each share will be entitled to a small annual dividend, paid as interest, and set by the Board of Governors to not exceed 2%.

Article 3
The Imperial Bank of Kalistan shall be governed by an 11 person Board of Governors, who shall be elected 2 from each Duchy in the Empire by a vote of all Kalistani nationals who own shares or have deposits in The Imperial Bank of Kalistan. The 11th Member will be the Minister of Finance, who will serve ex officio on the Board, and will be the Presiding Officer of the Bank, and will only vote to break ties of other Board members. The Board of Governors will be exclusive responsible for the responsible and conservative operations of The Imperial Bank of Kalistan, and shall be charged to hire staff to run the system effectively.

Article 4
The Functions of the Bank shall be listed as follows:
a) To serve as the depository of all revenues of the Empire of Ananto and Kalistan.
b) To serve as the single payor of all Public obligations of the Empire of Ananto and Kalistan
c) To issue and back all currency used for public and private debts in the Empire of Ananto and Kalistan
d) To serve as guarantor for all public bonds and treasury notes floated by the government of the Empire of Ananto and Kalistan
e) To encourage zero percent GDP growth in the economy of the Empire of Ananto and Kalistan, through monetary policy
f) To set all interest rates in Kalistan, ensuring that private citizens of Kalistan receive the most beneficial rates, that Kalistani businesses pay standard interest rates, and foreign interests pay high interest rates
g) To cover all temporary (less than 1 year) deficits in the Imperial Budget
h) To invest all surpluses in the Imperial Budget according to the following formula: 85% in a rainy day fund, 15% in profit generating investments both at home and abroad
i) To issue fiat currency and ensure that the value of this currency does not significantly deviate from the face value of this currency
j) To fully fund all public sector operations, including the National Service Program and the Imperial Food Bank from Public revenues, as well as any infrastructure improvement or other economic development passed by the Chamber of Deputies
k) To serve as the primary depository of moneys for private saving and drafting, as well as the issuer of bank cards that allow deposited money to be moved freely about the Empire and abroad, safely and surely.

Article 5
The Imperial Bank of Kalistan must keep 85% of total deposits available for withdrawal at any point. Of the remaining 15%, The Imperial Bank of Kalistan, under direction of the Board of Governors, may invest 10% in the Kalistani Private Sector, and 5% abroad. The Imperial Bank of Kalistan may never speculate on foreign currency or invest in fascist countries. The Imperial Bank of Kalistan may never invest in securities that are deemed "Moderate" to "Extreme" Risk, nor may they speculate on currencies which produce greater than 5% ROI in a given year. If that ROI is realized, the Bank must divest immediately upon learning that 5% earnings will be generated.

Article 6
The Imperial Bank of Kalistan must conduct an audit of its accounts, to include information about total revenues and outlays, as well as detailed information about all investments, once every other year, and publish this audit in public. Additionally, it will supply a copy of this audit to the Finance Minister who will enter it into public record.

Article 7
This Act will be enacted upon receiving an affirmative vote from a majority of the seats in the Chamber of Deputies. The Chamber of Deputies shall enact all laws necessary and proper to the correct operation of this Charter.

Article 8: This Act may be amended by a 2/3rds affirmative vote of the National Assembly. The full; amended Charter must be included in the description of Amendment Act.