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National Bank of Eniarku
|National Bank of Eniarku|
|Established||12 January 2017|
|Central bank of||Kingdom of Eniarku|
The National Bank of Eniarku, formally His Majesty's National Bank, is the central bank of the Kingdom of Eniarku. It was established by Parliament in 2017 by the National Banking Act out of desire among members of His Majesty's Government to encourage Eniarkian economic development. The National Bank is responsible for the monetary policy of the kingdom, as well as for issuing Eniarkian franc banknotes, and is the only bank operating within Eniarku. The bank is a royally-chartered institution under special regulations, and is based in Palmaire.
The basic governing principles of the National Bank are contained within its creating document, Parliament's National Banking Act, which broadly defines the primary duties of the institution as:
A. The National Bank is to be the sole institution with the ability to print and coin currency in Eniarku.
B. The National Bank is to be the sole institution with the ability to maintain and adjust monetary policy in Eniarku.
C. The National Bank is officially charged – jointly with the Royal Household and the Office of His Majesty The King – with the proper management of the Crown Estate.— Art. III §2a-c, National Banking Act
The National Bank–by virtue of its role as the central bank of the Kingdom of Eniarku–serves as both the people's bank and as the government's bank. In its services to the people and bankers, it works to assure the safety and efficiency of payments systems between individuals, firms and corporations. As the government's fiscal agent, the bank processes a variety of financial transactions between government agencies and institutions, and just as an individual keeps an account at a bank, His Majesty's Government maintains a "checking account" of sorts with the National Bank. Through this service relationship, the bank sells and redeems Eniarkian government securities and maintains the National Cheque System. The National Bank also issues the nation's paper currency in the form of Eniarkian franc banknotes, manufacturing them in-house.
The National Bank is also charged with the regulation of the entire banking system of Eniarku, which includes any private or investment banks that may be founded in the future. According to its creating statute, one of the bank's secondary responsibilities is:
B. The National Bank is responsible – in conjunction with the Ministry of State – for the management of the national banking system of Eniarku, and the policies and regulations thereof.— Art. III §4b, National Banking Act
Given the small size of Eniarku's economic sector, however, it is likely that this portion of the law will go unused, though the creation of any additional banks may lead to the creation of a banking council, with the Director-General of the National Bank as the chair.
The term "monetary policy" refers to any actions undertaken by a central bank (such as the National Bank) to influence the availability and cost of money and credit to promote national economic goals. In the case of Eniarku, the Ministry of State is responsible for creating and implementing economic policy, while the National Bank is responsible for coordinating its monetary policy efforts with the goals set by the ministry to ensure maximum economic success. The National Bank publishes twice-yearly reports on both the current state of the Eniarkian economy and the future projections, utilizing inflation measurements, price stability and overall investment by citizens, among other gauges.
The National Bank is the chief banking institution in Eniarku, and maintains a structure that draws on both the public and private sectors–in short, the bank is only semi-independent from His Majesty's Government. While the bank does not receive nor require public funding, it derives its authority and purpose from the National Banking Act, which was passed by Parliament in 2017 and is therefore subject to modification or repeal.
The Director-General of the National Bank (DGNB) is jointly nominated by the sovereign and the prime minister, subsequently confirmed by Parliament, and serves at the pleasure of the monarch. The Director-General maintains administrative autonomy to adjust the structure of the bank on an as-needed basis without the approval of Parliament, and is free to appoint any necessary staff or subordinates as he or she deems appropriate. The General Staff of the National Bank is the broad-strokes designation for the administrative employees of the institution that are appointed by the Director-General.
Relationship with the Ministry of State
The Director-General is officially charged with proper coordination between the bank and His Majesty's Government, though these responsibilities are delegated to the State Banking Liaison (SBL). The SBL is the go-between for the National Bank and the Ministry of State, setting standards of communication and arranging meetings between the offices of the Director-General and the State Minister to ensure maximum cooperation in working towards the highest levels of economic success. The liaison is officially an employee of both the State Ministry and the National Bank (reporting additionally to the sovereign), and is appointed directly by the King without parliamentary approval.
Relationship with the Crown
Aside from the sovereign's duties to appoint the Director-General and the State Banking Liaison, the National Bank is legally sponsored by the Crown by way of its royal charter. The bank's charter was issued on 12 January 2017 by King Aaron I, and established the bank as the chief banking institution of Eniarku with permission to independently oversee and manage the monetary systems of the country. The sovereign serves as the honorary chairman of the National Bank (though holds no practical sway over the institution itself or its policies), and the bank is officially charged with proper management of accounts and holdings included in the Crown Estate in cooperation with the Royal Household and the Office of His Majesty The King.