NationStates Jolt Archive

Introducing the Common Bank - "Let Us Help You Prosper."

After a lengthy period of planning and gathering support for this effort, the Socialist Republic of Xanthal is proud to open the Common Bank to the international community. The Common Bank is designed to streamline the process of trade between nations by providing a universally acceptable medium of exchange. To accomplish this, the Bank will establish a wide base of Member nations which are commercially and/or industrially active on the international stage. These members will incorporate the Common Credit into their banking system, making it available to all citizens who might otherwise be forced to rely on unstandardized exchange currencies or bartering for business conducted across state borders. All nations, but especially those for which international trade is a vital part of their economy, are encouraged to become Members of the Bank.

Not up for full Membership? You needn't be left behind! The Bank will also service nations who wish to provide a source of Common Credits for their people, but lack the financial centralization or legal system necessary to become Members, by establishing exchange centers accessible to institutions and individuals within that nation to provide needed currencies and offer the Bank's other financial services, including international market investing and insured payment plans.

With its staff of legal representatives from Member and client nations, the Bank will not only make trade easier for governments, companies, and common citizens; it will also minimize the risk normally associated with making transactions across national and state boundaries by providing expert service and support to those making a transaction. The Common Bank will enhance the viability and productivity of Member nations' import and export companies and simultaneously benefit the economies of all participants with the resulting boost in consumer spending.

Free trade policies are ideal for Membership, as the Common Bank makes your economic specialization more efficient by reducing import and export hassles. Protectionist mechanisms keeping your local businesses safe? The Common Bank will work with your government to make sure that all transactions are properly inspected, regulated, and taxed; and that the dividends go to your state instead of into the pockets of shady accountants.

Whether you choose Membership, with preferred rates, the full benefits of the Common Bank with branches throughout your country, and a say in the Bank's future development; or simply agree to host exchange centers and give your citizens an edge in the international market, the Common Bank and the Common Credit will work for you, your people, and your country. Let Us Help You Prosper.

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Charter of the Common Bank

Article 1. Preamble
This document and all its contents shall be known as the Charter of the Common Bank, hereafter Charter. Its commission creates the Common Bank, hereafter Bank, for which the terms of this Charter shall be the supreme law.

Article 2. Mission
The Mission of the Bank is to provide a universally-acceptable medium of exchange to people, companies, and governments of all nationalities. The Bank shall also provide any other services the Board may commission to facilitate efficient, reliable, and secure transactions across national and state borders for its clients.

Article 3. Organization
Section 1.
The Bank shall be owned by the Socialist Republic of Xanthal, as represented by the sovereign government thereof.
Section 2.
The Bank shall be led by a Board of nine people, appointed by the Xanthalian Triumvirate. The Board shall make decisions with no fewer than five of its members in favor.
Section 3.
Monetary compensation of Bank employees shall be dispensed by the Socialist Republic of Xanthal in Credits.
Section 4.
The Bank shall operate under the legal jurisdiction of the Socialist Republic of Xanthal, and shall be subject to the judgments of the High Court of Xanthal.

Article 4. Currency
Section 1.
The Bank shall mint Common Credits, hereafter Credits, for distribution to Members and other clients.
Section 2.
The Bank shall redeem at market value any foreign currency with a reasonable level of acceptability, as determined by the Board, for Credits.
Section 3.
The value of the Credit shall be set by the Board.
Section 4.
The Bank shall charge a premium no more than 10% on purchases of Credits.
Section 5.
The Bank shall retain the right to destroy currency in its possession with the approval of the Board and the Xanthalian Council.

Article 5. Members
Section 1.
Any sovereign party agreeing to be legally bound by the provisions of this Charter through legal and official approval by that party’s legal representative(s) that informs the Board of its agreement is a Member of the Bank unless rejected by the Board.
Section 2.
Each Member must maintain in Credits a stock the total value of which is no less than one percent of its domestic currency reserves or no less than ninety percent of its previous year’s trade deficit, whichever amount is greater.
Section 3.
Each Member must allow the Bank to hold that Member’s fiat currency, to use that currency for purchasing items from sellers within that Member’s jurisdiction, and to destroy units of that currency in the Bank’s possession.
Section 4.
Each Member must make Credits available, at a premium not exceeding 10%, to any person within its jurisdiction in exchange for its fiat currency.
Section 5.
Each Member must make its fiat currency available, at market value, to any person within its jurisdiction in exchange for Credits.

Article 6. Amendments
The Board may propose Amendments to this Charter, which shall take effect when approved by two thirds of Members.

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Join these Members, already enjoying the full benefits of the Common Bank!
-Arizona Nova
-CoreWorlds
-Draconis Nightcrawlis
-Maraque
-Neo Zeta
-New Dornalia
-Northrop-Grumman
-The Humankind Abh
-Yukatania

Host exchange centers and make paying your trading partners a breeze!
-Alcona and Hubris

We are happy to support the Common Bank, and we will continue to be a major financer for years to come. We encourage many other Nations to enjoy the benefits that come with this bank.

Long live economic prosperity!

We, the Imperial Republic, do hereby support this Universal Bank proposal and offer our

http://i21.photobucket.com/albums/b269/Coredia/JediStampofApproval.jpg

Jedi Stamp of Approval!

Would the Imperial Republic then be interested in becoming a Member of the Bank?

The L.O.N. World Bank fully endorses your bank, and also gives you a grant of $148 billion

Would the Imperial Republic then be interested in becoming a Member of the Bank?
Yes, we will.

The L.O.N. World Bank fully endorses your bank, and also gives you a grant of $148 billion
The World Bank's support is gratefully welcomed, as is its generous grant.

The Secular Empire of Maraque would like to become a member.

The Common Bank welcomes new Members the Imperial Republic and the Secular Empire. As the Bank's Membership base grows, so do the benefits to its Members. We encourage all Members to alert their allies to this opportunity. By expanding the market, we can increase every individual's prosperity.

-Board of the Common Bank

The Imperial Axis of Neo Zeta would like to apply to join this common bank.

The Board welcomes the Imperial Axis of Neo Zeta as a Member of the Common Bank.

The United Socialist States of Eriburn would like join the Common Bank, and offer the rights to branches in the USSE.

Considering Eriburn's small population and uncertain economic future, the Board hesitates to place full faith in the Denaro at this time. While nothing would please us more than to welcome the United Socialist States as Members of the Common Bank, it is our responsibility to maintain the value and viability of the Common Credit, to protect our business and existing Members. For that reason, we regret to inform you that the Board has rejected Eriburn's Membership request. We sincerely hope that we will recieve another application from your government once your economy has improved or your currency proves stable in the long-term at current exchange rates.

Best wishes for your success,
The Board of the Common Bank

The Workers State supports our fellow Comrades in its establishment of the Common Bank. We therefore would like to apply for full Membership.

OOC: Say, this wouldn't override our local currencies, would it, and render them invalid? I'd like to still use ND Dollars and Common Credits.

The United Duchies, as a member state of the Federated Klatchian Coast can not become a member since we can not allow the Common Bank to destroy our notes.

At present the Federated Klatchian Coast is also not intrested in having a foreign bank have the legal right to destroy currency of the Federation.

However, we will allow the operation of exchange centers within the United Duchies and welcome the abilty of our commerce to trade freely between nations with a new, trade currency.

To the Workers State of New Dornalia:

The Board is pleased to accept your petition for Membership in the Common Bank. We look forward to assisting your government and your people in doing business.

OOC: The Common Bank does not invalidate local currencies; it offers an additional currency to be used for international exchange.

Sincerely,
The Board of the Common Bank

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To the United Duchies of Alcona and Hubris:

The Board understands the hesitation of your state and federal governments to allow the Bank to destroy units of its currency. This measure is in place for Members to avoid an overstock of foreign currency in the event that a client nation runs a consistent trade deficit, allowing the bank to "replace" the currencies it acquires from other nations with quinaults and thus ensure an uninterrupted supply of Common Credits. As a non-member you can be assured that Griffens you supply for Common Credits will be kept on reserve and not be destroyed, but the Board reserves the right to stop accepting Griffens at its discretion, for the protection of the Common Bank and its customers. With that said, the Board is happy to accept the United Duchies as hosts to exchange centers.

Sincerely,
The Board of the Common Bank