Bank of Wesley

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The Bank of Wesley, formally the Governor and Company of the Bank of Wesley, is the central bank of Skovaji. Established in 2015, it is the de facto central bank for the whole of the EXU, and the only central bank in the EXU. It was established to act as the Skovajan Government's banker and is still the banker for the Government of Skovaji. The Bank has been privately owned by stockholders from its foundation in 2015, although the government of Skovaji own 51% of the bank. It moniters the Wesley, the currency of Skovaji.

The bank also runs the Skovaji Stock Exchange.

History

Skovaji's crushing defeat when a part of the Progressive Micronational Forum, an essentially Skovajan national endevour, culminating in the eventual decline in Skovaji actions within the community, became the catalyst for Skovaji's rebuilding itself as a micronational power. Skovaji had no choice but to build a powerful economy, but no public funds were available, and the credit of Christy II's government was so low that it was impossible for it to borrow the W100,000 that the government wanted. To induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of Wesley. The Bank was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue bank notes, whihc was previously the exclusive job of the Royal Mint. The lenders would give the government cash and issue notes against the government bonds, which can be lent again.

The bank also had the job of raising the money required for Skovaji's trade agreements with Myré, as Skovaji (through the EXU) agreed to pay Myré 1 Loundré a month for the buying of Iron, money that it did not have (as most of the nation's funds were going to pay off the governemnt's private debts). Through the corporation, the governemnt was bale to profit from the nation's economic prowess, and when the nation regained stability in early 2016 it bought up just over half of the shares of the bank.

Role

The Bank performs all the functions of a central bank. The most important of these are maintaining price stability, and supporting the economic policies of th government, thus promoting economic growth. Stable prices and confidence in the currency are the two main criteria for monetary stability. Stable prices are maintained by seeking to ensure that price increases meet the Government's inflation target. The Bank aims to meet this target by adjusting the base interest rate, and through its communications strategy, such as publishing yield curves. Maintaining financial stability involves protecting against threats to the whole financial system. Threats are detected by the Bank's surveillance and market intelligence functions. The threats are then dealt with through financial and other operations, both at home and abroad. In exceptional circumstances, the Bank may act as the lender of last resort by extending credit when no other institution will. However, this function has never been deployed.

The Bank acts as the government's banker, and it maintains the government's Consolidated Fund account. It also manages the country's foreign exchange and gold reserves. The Bank also acts as the bankers' bank, especially in its capacity as a lender of last resort. Ergo, financial endeavors made by the government are made through the bank, whihc means that shareholders of the bank recieve a share of all money handled by the governemnt.