International Imperial Investment Bank
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The International Imperial Investment Bank is the largest banking establishment in the Arch-Imperium. Even for a bank, the IIIB has done surprisingly outstanding considering the "socialist" policies of the Arch-Imperium. At one time under Dynastic International, the IIIB has broken free with the Imperial Stratagem legislating it into independence.
The IIIB is responsible for massive loans and monitoring interest rates for the Arch-Imperium, working closely with the Ministry of Finance and the Treasury. The power that the IIIB holds is substantial which is why half of its board of directors is composed of half of Councilors, one quarter of Xheng Royal Officials and another, chief public shareholders.
The IIIB's shares are one of the more rare distributions, in which the Imperial Stratagem holds half of the shares, guarenteeing its control even outside of the Royal Family. Though the Royal Family has substantial influence over the runnings of the bank it is ultimately the Government that does the real work and holds the real power. This is a direct check on the Royal accounts as well which are monitored by the International Imperial Investment Bank.
In addition to the Government's own direct spending and loans as well as financial records, IIIB also handles the money for Dynastic International, Psionex, PetroEnerGen, Imperial Networks and Royal Star Enterprises, shooting up its liability insurance by nearly a hundred fold. But due to this massive increase in its responsibilities, IIIB has become one of Europe's largest banks, effectively surpassing all private banks such as the Keodian-Imperial International Commerce Bank. The KIICB and IIIB have had an intense rivalry with services which effectively puts a service check on the IIIB's seemingly huge monopoly on financial services.
At one time the International Imperial Investment Bank attempted to purchase 25% shares of the Keodian-Imperial International Commerce Bank but that deal didn't go through with the stock prices for KIICB nearly doubling in a single day when rumours of IIIC's purchase were leaked to the public. This accidential leak effectively kept KIICB from a hostile takeover.
The CEO of the IIIB is also the Minister of Finance and Keeper of the Imperial Vault.
Contents
Purpose
The IIIB is responsible for monetary policy of its country (or in the case of the EU, group of member countries). Its primary responsibility as a central bank is for the stability of the national currency and money supply, including interest rates; and acting as a lender of last resort to the banking sector and the national financial system as a whole. It may also have supervisory powers to ensure that banks and other financial institutions do not behave recklessly or fraudulently.
- monopoly on the issue of banknotes
- the Government's banker and the bankers' bank ("Lender of Last Resort")
- manages the country's foreign exchange and gold reserves and the Government's stock register;
- regulation and supervision of the banking industry;
- setting the official interest rate - used to manage both inflation and the country's currency exchange rate.
The IIIB also is heavily involved in Commercial Banking, the common concept of "Banking".
History
The IIIB started off as a department created by both the Imperial Stratagem and Dynastic International to handle the huge financial affairs of a megacorporation like Dynastic International without depriving the government of bureaucrats in the Ministry of Finance and Treasury. Though the Finance Minister does not "loan" out government money to private institutions, the IIIB does. A seperate banking entity was established to establish credit and monitor trading in currencies as well as set a standard for the financial actions of smaller banking firms like its chief competitor the Keodian-Imperial International Commerce Bank.
Criticism
The IIIB is a huge institution with branch offices around the world and the power to recall loans is particularly threatening to organizations, even governments, who have taken out loans from the IIIB. A related critique is that the Bank operates under essentially "neo-liberal" principles, in the belief that the market can solely, and by its own nature, bring prosperity to nations that practice free market competition. In this perspective, reforms born of "neo-liberal" inspiration are not always suitable for nations experiencing conflicts (ethnic wars, border conflicts, etc.), or that are long-oppressed (dictatorship or colonialism) and do not have stable, democratic political systems.
One general critique is that the Bank is under the marked political influence of certain countries that would profit from advancing their interests. In this point of view, the World Bank would favor the installation of foreign enterprises to the detriment of the development of the local economy.
Furthermore, it frequently suggested that the Bank intervenes in order to salvage irresponsible loans from private institutions to, often corrupt and non-representative, third world governments, and thus shifts the risk from the original risk-takers to the public of the rich countries, who ultimately must back the Bank.
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See also:
