Kalistani Major History

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New Bank to ensure complete secrecy of all deposits for Foreign Investors
Foreign Investment Bank Charter goes to the Floor in the National Assembly; Passage expected
Kaliburg, Grand Duchy of Ananto
March 7, 5530


Bank directors meet to put the finishing touches on the For-In Bank Charter with Ministry of Finance officials

Bank Governors from the P/P Commercial Bank of Kalistan in Kaliburg met with His Imperial Majesty's Foreign Ministry officials to put the final touches on the Charter of the Foreign Investment Bank (For-In Bank), the first fully Privatized Major Bank in Kalistan. The new Bank, targeted solely at obtaining Foreign Investment offers a number of benefits that other banks in Kalistan do not offer. For example, according to the Charter which is now making its way through the National Assembly, (http://classic.particracy.net/viewbill.p...lid=706653) all deposits are deemed secret and inviolable.

"Essentially, what this bill does is set Kalistan up as a tax haven in Northern Seleya, aimed at undermining the efforts of surrounding states to provide similar services," said Anne Stuart, spokesperson for the Bank of Kalistan, which is providing the initial ₭40 million capitalization for the Bank. "As the Charter's only processing fees are a 1% foreign currency exchange fee, the Bank will be able to take deposits denominated in both Kalistani and foreign currency, and then, upon withdrawal, will be able to pay out in most if not all foreign currencies. This provides foreign investors the opportunity to bring Kalistan foreign Currency, and either store it here away from the prying eyes of foreign Governments, or use it here to invest in the Kalistani Economy."

There are several other features built into the bank charter that should increase the attractiveness of the Foreign Investment Bank. "The Charter permits the Bank to lend money at an interest rate set by industry best practices to allow it to directly compete with similar institutions abroad. It also has the ability to adjust that rate to more aggressively compete for investors, especially if it means stealing them from competitors. This Bank is an entirely private entity, and the Charter, which will carry the force of a National Statute, forbids the National Government from seizing assets, or nationalizing any or all of the Bank without full compensation for all deposits. And the National Government offers all deposits in the For-In Bank ₭500,000 in deposit insurance per account against failure, which is something that is unheard of in the international finance industry. We want the world to know that the Bank is safe, a competitive investment, and a great way to do business in Kalistan."

The Bank will also have the power to provide unsecured revolving credit to Kalistanis for the first time as a bank product. "The issuing of what is called elsewhere 'credit cards' for the first time in Kalistan is a significant change in Kalistan's attitude toward debt and credit," said Stuart. "This country is notoriously allergic to debt, and the Charter makes it deliberately difficult to obtain revolving credit, with strict credit limit caps and a relatively small debt to income ratio threshold, but for those who are financially stable, and would like access to small amounts of capital to make purchases on credit, this product will become available." The Bank will also offer secured loans to both foreign and domestic investors. "We anticipate that making a source of private capital available will spur whole segments of the economy which have previously lagged," said Stuart who said she anticipated a building wave and increased foreign opportunities to invest. "Having your money in a local bank that you can draft on or obtain credit from will make it a LOT easier for foreigners to bring capital to Kalistan and spend it here."

Finally, the Bank is given the right to open Cambios in Kaliburg, Sulari, Addisjah and Lucid. "We want to capture the foreign currency exchange in Kalistan," said Stuart. "Right now, people could go to local banks to exchange currency upon arriving in Kalistan, but we are putting these official cambios, which aim to outcompete local banks with better exchange rates, in our airports and train stations, for both the convenience of travelers, and to allow the For-In Bank the opportunity to acquire foreign currency under better conditions that we would if we had to buy it on the international market."

The initial capitalization will be purchased by the For-In Bank from the Bank of Kalistan over the next 20 years, at which point, the institution will be entirely self-governing and will only fall under the same regulations as all other corporations in Kalistan. Foreign Investors are entitled to purchase stock in the For-In Bank during the buy back period, and following the passage of the Charter, the Bank will be open for investment.