National Bank of Gylias
|Ownership||Public organisation, reporting directly to Parliament and communal assemblies|
|Central bank of||Gylias|
GTH (ISO 4217)
The National Bank of Gylias (French reformed: Banque nationale d'Gylias), commonly abbreviated NBG (BNG), is the central bank of Gylias. It has a mixture of responsibilities typical of a central bank, currency board, and public bank, including formulating monetary policy, issuing the þaler, and overseeing the Gylian financial system.
While the NBG is independent of the federal government, it is a public organisation and ultimately under popular control through direct democracy, restricting its independence compared to other Tyranian central banks.
The bank was established in 1958, partly through a consolidation of several financial institutions that had been established in the Free Territories. It obtained both the responsibilities of a central bank and roles related to public banking.
During the wretched decade, the Aén Ďanez government attempted to expand the NBG's role at the expense of the National Popular Banking Association of Gylias. In response, reforms were carried out in the 1980s to increase the NBG's distance from the Cabinet, and additional modernisation took place in the 1990s, particularly in electronic financial services.
Roles and responsibilities
In practice, it has concentrated on the objectives of maintaining the welfare of Gylians and full employment.
Its key responsibilities include:
- Overseeing and maintaining the stability of the financial sector.
- Ensuring universal access to financial services.
- Promoting financial inclusion.
- Issuing the þaler.
- Managing federal reserves, including foreign exchange and gold.
- Being the lender of last resort.
- Keeping the Cabinet and Parliament informed of monetary policy, developments in the economy, and future plans.
The NBG determines monetary policy through control of interest rates, bank rates, and open market operations, and additional instruments such as credit guidance (in cooperation with the National Capital Investment Board).
The NBG is also a public bank. All Gylians automatically have personal accounts created with the NBG, known as national accounts (comptes nationales). These accounts are the main way taxes, salaries, assistance payments and public and social dividends are paid.
The national accounts are one of the most important functions of the NBG, and are responsible for the absence of unbanked and underbanked Gylians, real-time payments, and ensuring windfalls from high interest rates are transferred to the entire population.
The NBG issues the coins and banknotes of the Gylian þaler. Since the þaler is a fiat currency and a member of the Common Monetary System, the NBG also serves as a currency board, administering capital controls and foreign exchange controls.
The NBG operates a full-reserve banking system, which translates into a reserve requirement of 100%. This is an important instrument for maintaining exclusive control over federal money creation and ensuring democratic accountability.
The NBS is organised as a public organisation and cooperative federation. It has 20 regional branches. It is managed by the 9-member Management Board, which is supervised by the 15-member Supervisory Board. Both boards are elected annually, without the possibility of immediate re-election.
In order to maintain democratic control over money supply, the NBS bases policy on the directives of communal assemblies and municipal and regional advisory councils. Money creation is thus determined by community needs and approval.