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{{Nouvelle Alexandrie Article}}{{WIP}}
{{Nouvelle Alexandrie Article}}
{{Infobox company
{{Infobox NAX government agency
|name = Federal Bank of Nouvelle Alexandrie
| name               = Federal Bank of Nouvelle Alexandrie
|logo = [[File:FederalBankNA_Logo.png|200px]]
| seal              =  
|type = Central bank
| formed            = {{AN|1685}}
|industry = Banking and Finance
| type               = [[wikipedia:Central bank|Central bank]]
|foundation = {{AN|1685}}
| jurisdiction      = {{team flag|Nouvelle Alexandrie}}
|location_city = [[Cárdenas]]
| headquarters      = [[Cárdenas]], [[Federal Capital District]]
|location_country = [[Nouvelle Alexandrie]]
| director_title    = [[#Governors|Governor]]
|products = Banking services, Monetary policy, Financial stability
| director_name      = [[Lucienne Martel]]
|revenue = Generated through open market operations, financial services, and interest on reserves
| deputy_title      = [[#Governors|Deputy Governors]]
|num_employees = 4,000 (as of AN 1726)
| deputy_name        = {{unbulleted list|[[Fernando Luis Mendoza]]|[[Amaru Quispe Huanca]]}}
| parent_agency      = [[Department of Treasury (Nouvelle Alexandrie)|Department of the Treasury]]
| child_agencies    = {{unbulleted list|Federal Savings Institutions Supervisory Board|Division of Regional Financial Institutions|[[Federal Deposit Insurance System]]}}
}}
}}


The '''Federal Bank of Nouvelle Alexandrie''' (FBNA) is the central bank of the [[Nouvelle Alexandrie|Federation of Nouvelle Alexandrie]], established in {{AN|1685}} following the [[New Prosperity Plan]]. It functions as the federation's principal monetary institution, with a wide range of responsibilities outlined in the [[Currency of Nouvelle Alexandrie Act, 1711]].
The '''Federal Bank of Nouvelle Alexandrie''' ([[Alexandrian language|Alexandrian]]: ''Banque Fédérale de Nouvelle Alexandrie''; [[Martino language|Martino]]: ''Banco Federal de Nueva Alejandría''; [[Wechua language|Wechua]]: ''Musuq Aliksantriya Qullqi Wasi'') is the [[wikipedia:central bank|central bank]] of the [[Nouvelle Alexandrie|Federation of Nouvelle Alexandrie]]. Established in {{AN|1685}} by the National Economy Act and reformed by the [[Currency of Nouvelle Alexandrie Act, 1711]], the Federal Bank holds exclusive authority to issue the [[New Alexandrian écu]] and is responsible for monetary policy, banking supervision, and financial stability across the Federation.
 
The Federal Bank is headquartered in [[Cárdenas]] and operates a network of regional branch offices in each of the twelve Regional capitals. As an independent government agency under the jurisdiction of the [[Department of Treasury (Nouvelle Alexandrie)|Department of the Treasury]], the Federal Bank's monetary and credit policies are established neutrally and executed independently of political direction. The current Governor is [[Lucienne Martel]], who has served since {{AN|1748}}.
 
Since its founding, the Federal Bank has managed the Federation's monetary integration, developed comprehensive banking supervision frameworks, and intervened decisively during multiple financial crises. The institution administers the [[Federal Deposit Insurance System]], which was transferred to Federal Bank oversight from the [[Nouvelle Alexandrie Deposit Insurance Corporation]] by the [[Comprehensive Financial Stabilization Act, 1749]]. The regulatory architecture has expanded considerably over time, particularly following the [[Community Savings and Credit Guild Crisis of 1704]], the enactment of the [[Bank Run Prevention Act, 1718]], and the [[Federal Trust Crisis of 1749]].


==History==
==History==
{{See also|Economy of Nouvelle Alexandrie}}
===Community Savings & Credit Guild crisis of 1704===
{{Main|Community Savings & Credit Guild crisis of 1704}}
===Recession of 1709===
{{Main|Recession of 1709}}
===Wars of the Dispossessed===
{{Main|Wars of the Dispossessed}}
===1725 Constancian crisis===
{{Main|1725 Constancian crisis}}
===Recession of 1726===
{{Main|Recession of 1726}}


==Mandate and Functions==
===Founding and monetary integration (1685-1700)===
Under the [[Currency of Nouvelle Alexandrie Act, 1711]], the FBNA was granted the exclusive right to issue currency within [[Nouvelle Alexandrie]], a role it has diligently fulfilled, maintaining the internal and external value of the [[New Alexandrian écu]]. The Act also charged the bank with promoting financial stability, guiding sound banking operations, and fostering economic development while keeping in line with its primary objectives.
The formation of the [[Alduria-Wechua|Federation of Alduria and the Wechua Nation]] in {{AN|1685}} required immediate monetary integration between the two founding nations. The [[Federal Constituent Assembly]] passed the National Economy Act, which established the [[New Alexandrian écu]] as the unified currency, replacing the [[Aldurian écu]] and the [[Wechu sol|Wechua sol]]. The Act also created the Federal Bank of Nouvelle Alexandrie as the central monetary authority, headquartered in the new federal capital of [[Cárdenas]].
 
The first Governor, [[Tupac Yupanqui Rimachi]], was selected specifically to demonstrate that the new Federation's central bank would serve both founding nations equally. A respected economist who had managed the Wechua Nation's monetary affairs before federation, Rimachi brought credibility to the integration process. The currency unification proceeded smoothly, aided by pre-existing commercial ties between [[Alduria]] and the [[Wechua Nation]]. Exchange rates were set at parity to minimize disruption, though this required careful management of money supply in both former nations.
 
During its first years, the Federal Bank focused on establishing credibility through conservative monetary policy while the new government embarked on ambitious spending programs under the [[New Prosperity Plan]]. Rimachi oversaw the establishment of the initial regional branch network and developed the financing mechanisms that supported territorial expansion and infrastructure development.
 
===Early challenges and the 1711 reforms===
Governor Rimachi retired in {{AN|1702}} after 17 years of service, the longest tenure in Federal Bank history. His successor, [[Henri-François Beaumont]], came from the private banking sector and was seen as a modernizer who would bring commercial sophistication to the institution. However, Beaumont's tenure was marked by two significant crises that exposed regulatory weaknesses.
 
The [[Community Savings and Credit Guild Crisis of 1704]] revealed that the Federal Bank had inadequate supervisory capacity over the rapidly proliferating savings institutions. By {{AN|1703}}, approximately 340 Community Savings and Credit Guilds operated across the Federation, holding combined deposits of NAX€89 billion and serving an estimated 4.2 million households. When risky investment activities led to widespread failures, the crisis required emergency interventions exceeding NAX€180 billion and created persistent budget deficits for nearly half a decade.
 
The [[Recession of 1709]], triggered by external shocks and the Natopian division, further strained the financial system. Two larger banking institutions, the [[Bank of Southern Alduria]] and [[TransFederal Bank]], filed for bankruptcy in {{AN|1710}}, though the broader banking system avoided systemic contagion.
 
Critics argued Beaumont had been too close to the banking sector he was meant to regulate. When Premier [[Felipe de Almagro]]'s [[Federal Humanist Party]] government took power in {{AN|1708}}, Beaumont's position became untenable. He resigned in {{AN|1710}}, officially citing the need for fresh leadership to implement necessary reforms.
 
Premier de Almagro appointed [[Rafael Antonio Fuentes]], a career Treasury official with no ties to the private banking sector and a reputation for incorruptibility. Fuentes worked closely with de Almagro on drafting the [[Currency of Nouvelle Alexandrie Act, 1711]], which comprehensively reformed the Federal Bank's governance structure, codified its independence provisions, and clarified its statutory mandates. The Act established the modern framework for Governor and Deputy Governor appointments, created the Board of Directors structure, and defined the Federal Bank's relationship with the Treasury and Council of State.
 
Under Fuentes, the Federal Bank established the Federal Savings Institutions Supervisory Board to prevent another CSCG-style crisis, expanded the regional branch network, and developed the stress testing protocols that would prove valuable in future crises. Fuentes professionalized the examination corps and created clear separation between monetary policy and supervisory functions. He served until {{AN|1724}} and is generally regarded as the architect of the modern Federal Bank.
 
===The Bank Run Prevention Act and deposit insurance (1718-1719)===
The experiences of the CSCG Crisis and the Recession of 1709 led to sustained demand for formal deposit insurance. In {{AN|1718}}, Deputy [[Daniel Valkory]] introduced the [[Bank Run Prevention Act, 1718]] to the [[Cortes Federales of Nouvelle Alexandrie|Federal Assembly]]. The Act received Royal Assent in {{AN|1719}} and established the [[Nouvelle Alexandrie Deposit Insurance Corporation]] (NADIC) as a government-sponsored corporation to protect depositors in the event of bank failure.
 
NADIC was structured as an independent entity with its own board of directors appointed by the [[Department of Treasury (Nouvelle Alexandrie)|Secretary of the Treasury]]. The corporation was funded through fees charged to member banks and backed by a government guarantee. Deposit insurance coverage was set by the Department of the Treasury, resulting in regional variations ranging from NAX€50,000 to NAX€250,000 depending on jurisdiction.
 
The Bank Run Prevention Act also authorized banks to impose temporary withdrawal restrictions during bank runs, established reporting requirements for bank financial conditions, and explicitly authorized the Federal Bank to extend credit in unusual or exigent circumstances to banks facing temporary liquidity issues. The Act prohibited commercial banks from engaging in proprietary trading, defined as using customer deposits to trade on the bank's own accounts for profit.
 
Governor Fuentes oversaw the initial implementation of the deposit insurance system, which operated alongside the Federal Bank's existing supervisory functions.
 
===The Alexandrium era and regional crises===
Governor [[Jean-Claude Lefèvre]], an academic economist and former rector of the University of Cárdenas, took office in {{AN|1724}} and served until {{AN|1738}}. His tenure coincided with the emergence of [[Alexandrium]] as an economic force and the challenges of managing both sudden wealth and regional economic turbulence.
 
The [[1725 Constancian crisis]] created spillover effects across the [[Raspur Pact]], including [[Nouvelle Alexandrie]]. The crisis, characterized by severe inflation and political instability in [[Constancia]], required coordinated international response. The Federal Bank participated in discussions with the [[Euran Economic Union]] and [[Community of Goldfield]] as [[Nouvelle Alexandrie]] joined [[Natopia]] and the [[Benacian Union]] in providing assistance to stabilize the Constancian economy. The [[Great Skerry-Valencian Drought (1720-1728)]], which affected both Constancia and parts of Nouvelle Alexandrie, compounded economic pressures during this period.
 
Lefèvre navigated the [[Recession of 1726]] and the [[New Alexandrian property sector crisis, 1727-1729|property sector crisis of 1727-1729]]. During the property crisis, two major developers, [[Stellar Homes]] and [[Alexis Development Group]], failed in rapid succession, threatening regional banking institutions with significant real estate exposure. The Federal Bank coordinated with the [[Department of Treasury (Nouvelle Alexandrie)|Department of the Treasury]] to provide emergency liquidity and facilitated [[Quipu Bank]]'s acquisition of the troubled [[Northern Development Bank of Lyrica]] and [[Southern Investment Bank of Lyrica]], establishing the precedent for managed consolidation that would be used in future crises.
 
Lefèvre maintained the Federal Bank's independence through the transition from FHP to [[Federal Consensus Party]] government in {{AN|1729}}, and continued serving after King [[Sinchi Roca I]]'s death and King [[Sinchi Roca II]]'s accession in {{AN|1735}}.
 
===Recession and Spring Crisis (1737-1739)===
[[Rodrigo Martín Salazar]], promoted from Deputy Governor in {{AN|1738}}, became the first Governor elevated through internal succession. Within months of taking office, he faced the aftermath of the [[Recession of 1737]], which had been triggered by the [[East Keltian Collapse]] and the [[Streiur uis Fairen|naval blockade and war in Benacia]]. The Federal Bank lowered the Federal Funds Rate to 2.25% and implemented a NAX€30 billion market stabilization program.
 
The [[Spring Crisis of 1739]] tested the Federal Bank differently. During the three-day coup attempt, the [[Nouvelle Alexandrie Stock Exchange]] suspended all trading from 3.III.{{AN|1739}} to 5.III.{{AN|1739}} after an unprecedented 12% drop in the first hour. The [[New Alexandrian écu|écu]] fell sharply against major currencies, declining 4.2% against the [[Natopian natopo]] and 3.8% against the [[Craitish cräite]].
 
Governor Salazar deployed NAX€15.2 billion in market operations to maintain liquidity, exercising the Federal Bank's authority under the [[Bank Run Prevention Act, 1718]] to extend credit in exigent circumstances. He also implemented temporary capital controls to prevent currency speculation. Corporate bond yields spiked by 180 basis points before stabilizing after Premier [[Marissa Santini]]'s announcement of emergency economic measures. By month's end, the écu had recovered 90% of its losses, and the stock exchange index returned to pre-crisis levels by IV.{{AN|1739}}.
 
===Recent developments and the 1749 reforms===
[[Patricia Molina]], appointed in {{AN|1745}}, became the first woman to serve as Governor. Her tenure focused on post-war economic normalization and managing the challenges of the Alexandrium boom. In {{AN|1746}}, she issued a notable statement on the emerging cryptocurrency phenomenon, acknowledging citizens' right to make investment decisions while warning of significant risks inherent in unregulated digital assets. Molina retired in early {{AN|1748}}, citing a desire to spend more time with family and pursue academic work.
 
[[Lucienne Martel]], promoted from Deputy Governor, took office in {{AN|1748}}. Her defining moment came during the [[Federal Trust Crisis of 1749]]. Beginning in VII.{{AN|1749}}, Federal Bank monitoring systems detected widespread liquidity problems across interconnected regional lenders. Five major regional banks, [[Beaufort Mutual]], [[Coastal Savings of Lyrica]], [[First Agricultural Bank of the South]], [[Lyrica Commonwealth Trust]], and [[Merchant's Bank of Fontainebleau]], had accumulated NAX€4.3 billion in non-performing loans, primarily concentrated in shell companies connected to the [[North Lyrica logging scandal]].
 
On 22.VII.{{AN|1749}}, Governor Martel worked alongside Premier [[Juan Pablo Jimenez]] through an extraordinary overnight negotiating session. The resulting NAX€6 billion emergency intervention, structured as a temporary asset swap facility backed by bank equity rather than taxpayer guarantees, protected 3.2 million depositors without public funds losses.
 
By early IX.{{AN|1749}}, credit markets had contracted severely despite the emergency intervention. Premier Jimenez convened an emergency session of the [[Cortes Federales of Nouvelle Alexandrie|Cortes Federales]] on 11.IX.{{AN|1749}}. The [[Comprehensive Financial Stabilization Act, 1749]], shepherded through negotiations by Defense Secretary [[José Manuel Montero]], passed on 14.IX.{{AN|1749}} with a 612-137 supermajority vote and received Royal Assent on 16.IX.{{AN|1749}}.
 
The Act fundamentally restructured the deposit insurance system. The [[Nouvelle Alexandrie Deposit Insurance Corporation]] was absorbed into the Federal Bank as the [[Federal Deposit Insurance System]], with standardized coverage of NAX€500,000 per depositor replacing the previous patchwork of regional variations. The Act also established the Division of Regional Financial Institutions within the Federal Bank, with authority to conduct stress tests and enhanced oversight of regional banks. Governor Martel completed the transition from NADIC to the Federal Deposit Insurance System by X.{{AN|1749}} and oversaw the Division's first comprehensive stress tests in XII.{{AN|1749}}.
 
Interbank lending rates, which had spiked to 12% during the crisis, normalized to 4.5% by XI.{{AN|1749}}. Governor Martel continues to serve under Premier [[José Manuel Montero]]'s government, which took office following the {{AN|1749}} general election.
 
==Organization and governance==
 
===Legal framework===
The Federal Bank operates under the authority of three primary statutes. The [[Currency of Nouvelle Alexandrie Act, 1711]] defines it as a government-owned independent agency under the jurisdiction of the [[Department of Treasury (Nouvelle Alexandrie)|Department of the Treasury]] and establishes that the Federal Bank's monetary and credit policies shall be established neutrally and executed independently. The [[Bank Run Prevention Act, 1718]] authorizes the Federal Bank to act as lender of last resort and originally created the [[Nouvelle Alexandrie Deposit Insurance Corporation]]. The [[Comprehensive Financial Stabilization Act, 1749]] transferred deposit insurance administration to the Federal Bank and created the Division of Regional Financial Institutions.
 
The statutory mandates of the Federal Bank are to promote financial stability, guide sound banking operations, maintain the stability of the internal and external value of the [[New Alexandrian écu|écu]], and foster economic development within the scope of these objectives.
 
===Governor and Deputy Governors===
The Federal Bank is headed by a Governor, who serves as chief executive and chairman of the Board of Directors. The Governor is nominated by the [[President of the Government of Nouvelle Alexandrie|President of the Government]], with the advice and consultation of the [[Department of Treasury (Nouvelle Alexandrie)|Secretary of the Treasury]], and appointed by the [[King of Nouvelle Alexandrie|King]] after confirmation by a majority vote of the [[Cortes Federales of Nouvelle Alexandrie|Federal Assembly]].
 
The Currency of Nouvelle Alexandrie Act, 1711 does not specify a term limit for Governors. In practice, Governors have served terms ranging from three to seventeen years, with most serving approximately seven to fourteen years. The convention of extended tenures has contributed to institutional stability and policy continuity across changes in government.
 
The Governor may have up to two Deputy Governors, nominated by the Secretary of the Treasury on the recommendation of the President of the Government, and appointed by the King for four-year terms. Deputy Governors may be reappointed upon expiration of their terms. Since {{AN|1738}}, three consecutive Governors have been promoted from Deputy Governor positions, establishing internal succession as a common pathway to the top position.
 
===Board of Directors===
The Board of Directors consists of the Governor as chairman, the Deputy Governors, directors nominated by the Department of the Treasury on the advice of the Premier and appointed by the King for four-year renewable terms, and four ex-officio members: the Secretary of the Treasury, the Secretary of State, and the Secretary of Social Security and National Solidarity.
 
The Board examines policies concerning money, credit, and foreign exchange; approves operation plans, budgets, and major regulations; examines the Federal Bank's assets, liabilities, and accounts; and oversees the establishment and abolition of branch offices. The Board may delegate powers to the Governor, subject to reporting requirements.
 
==Monetary policy==
 
===Mandate and objectives===
The Federal Bank determines the price stabilization target in consultation with the [[Council of State of Nouvelle Alexandrie|Council of State]] and annually establishes and publicizes the operational directions for its monetary and credit policies. The Currency of Nouvelle Alexandrie Act, 1711 requires the Federal Bank to do its best to achieve the price stabilization target while valuing the market mechanism in performing its policies.


==Structural Independence==
===Policy instruments===
The Federal Bank's independence, enshrined by the Act, allows it to operate free from political influence, ensuring that its monetary and credit policies are formulated and executed with the nation's economic best interests at heart. The bank's structure includes a Board of Directors and a Governor, who is nominated by the [[President of the Government of Nouvelle Alexandrie|President of the Government]] and confirmed by the [[Cortes Federales of Nouvelle Alexandrie|Federal Assembly]].
The Federal Bank conducts [[wikipedia:open market operations|open market operations]], purchasing and selling government bonds, financial bonds issued by banks, and bills accepted or guaranteed by banks. The Federal Bank may prescribe upper limits for bank deposit interest rates and approve ranges for loan interest rates proposed by bankers' associations. When monetary and credit conditions warrant, the Federal Bank may prescribe maximum limits for various kinds of credit extended by financial institutions.


==Regional Offices==
The Federal Funds Rate serves as the primary policy rate. During the [[Recession of 1737]], the rate was lowered to 2.25% as part of monetary easing measures. Following the [[Federal Trust Crisis of 1749]], interbank lending rates normalized to approximately 4.5% by XI.{{AN|1749}}.
The FBNA has established branch offices in each [[Administrative divisions of Nouvelle Alexandrie|regional capital]], funded by the federal budget. These branches play a critical role in implementing the bank's policies at a regional level and are overseen by the [[Commission for Federal Bank Regional Offices]], as directed by Royal Decree or the [[Department of Treasury (Nouvelle Alexandrie)|Department of the Treasury]].


==Emergency Powers==
===Lender of last resort===
The Federal Bank of Nouvelle Alexandrie (FBNA) holds significant emergency powers, pivotal in maintaining the economic stability and continuity of the federation's financial system during times of national or global crises. These powers are akin to those held by other major central banks, allowing the FBNA to act decisively and flexibly when confronting unexpected economic stress. Under the [[Currency of Nouvelle Alexandrie Act, 1711]], in the event of a financial emergency or when market conditions disrupt the monetary balance, the FBNA is empowered to take extraordinary measures to safeguard the financial system's integrity. These emergency powers are exercised with the utmost prudence and are guided by the overarching objectives of maintaining financial stability and supporting the federation's economic health. The FBNA's ability to act swiftly and its track record of effective crisis management have cemented its role as a cornerstone institution of [[Nouvelle Alexandrie]]'s economic framework.
The [[Bank Run Prevention Act, 1718]] explicitly authorizes the Federal Bank to extend credit in unusual or exigent circumstances to banks and other financial institutions facing temporary liquidity issues. The Federal Bank has established guidelines and criteria for extending such credit, including terms, collateral requirements, and interest rates. This authority has been exercised during multiple crises, including the [[Spring Crisis of 1739]] and the [[Federal Trust Crisis of 1749]].


===Currency Issuance and Minting===
==Banking supervision==
{{Main|Federal Mint of Nouvelle Alexandrie}}
The FBNA may delegate the task of currency minting to alternate government-operated mints. This ensures that currency issuance is not hindered by unforeseen circumstances affecting the primary minting facilities. This delegation can be critical in preventing liquidity shortages and reassuring markets during times of economic uncertainty.


===Open Market Operations===
===Licensing and examination===
The FBNA is authorized to conduct a range of open market operations, including buying and selling government securities, to influence the money supply and interest rates in the economy. These operations can be adjusted rapidly to respond to immediate financial conditions, providing the bank with a responsive tool to manage liquidity.
Under the Currency of Nouvelle Alexandrie Act, 1711, the Federal Bank licenses and examines all banks operating within Nouvelle Alexandrie and establishes general regulations for their operation, regulation, and solvency. The examination corps, professionalized under Governor Fuentes in the 1710s, conducts regular inspections and stress testing of banking institutions.


===Discount Window Lending===
===Supervisory divisions===
The FBNA operates a discount window that allows it to lend money to banks and other depository institutions in distress. The terms and conditions of such lending can be adapted during emergencies to provide relief to the financial sector and ensure the continued flow of credit to the economy.
The Federal Savings Institutions Supervisory Board, created following the [[Community Savings and Credit Guild Crisis of 1704]], oversees savings institutions under frameworks refined through subsequent crises. The Board was established to prevent the regulatory gaps that allowed the CSCG crisis to develop.


===Quantitative Easing===
The Division of Regional Financial Institutions, established by the [[Comprehensive Financial Stabilization Act, 1749]], provides enhanced oversight of regional banks. The Division employs a minimum of 200 federal banking examiners with expertise in credit analysis, asset valuation, and risk management. It conducts annual stress tests of all banks with assets exceeding NAX€5 billion, modeling severe but plausible adverse scenarios including property price declines, commodity market volatility, and credit contraction. Banks failing stress tests must submit capital restoration plans within 60 days. The Division may impose restrictions on dividend payments, executive compensation, and new lending until capital adequacy is restored.
In severe economic downturns, the FBNA may engage in quantitative easing — purchasing longer-term securities from the open market to increase the money supply and encourage lending and investment. This unconventional monetary policy tool can stimulate economic activity when standard measures are insufficient.


===Banking Regulation and Supervision===
===Proprietary trading prohibition===
The FBNA has the authority to modify regulatory requirements for banks temporarily, such as reserve requirements and capital adequacy ratios. Relaxing these regulations during a crisis can help banks remain operational and continue to serve their customers.
The [[Bank Run Prevention Act, 1718]] prohibits commercial banks from engaging in proprietary trading, defined as using customer deposits to trade on the bank's own accounts for the primary purpose of generating profits for the bank. Commercial banks must implement measures to segregate customer deposits from trading activities. The Federal Bank and [[Nouvelle Alexandrie Deposit Insurance Corporation]] (now the [[Federal Deposit Insurance System]]) monitor compliance with the prohibition, with violations subject to fines, operational restrictions, and potential license revocation.


===Foreign Exchange Interventions===
===Deposit insurance===
The FBNA may intervene in the foreign exchange market to stabilize the value of the New Alexandrian écu. These interventions can protect the écu from speculative attacks and maintain public confidence in the nation's currency.
{{See also|Federal Deposit Insurance System|Nouvelle Alexandrie Deposit Insurance Corporation}}
The [[Federal Deposit Insurance System]], established by the [[Comprehensive Financial Stabilization Act, 1749]], provides standardized coverage of NAX€500,000 per depositor, per insured bank. The system replaced the [[Nouvelle Alexandrie Deposit Insurance Corporation]] (NADIC), which had operated since {{AN|1719}} with regional variations in coverage ranging from NAX€50,000 to NAX€250,000.


===Emergency Communications===
Under the 1749 Act, all functions, powers, assets, and liabilities of NADIC were transferred to the Federal Bank. The NADIC board of directors was dissolved, and authority is now vested in the Governor of the Federal Bank. All banks operating in the Federation must participate in the Federal Deposit Insurance System. Premium rates are calibrated to each institution's risk profile, with higher-risk lenders paying proportionally higher premiums. The system must maintain reserves equal to at least 2% of total insured deposits.
The FBNA is tasked with maintaining clear and open communication channels during emergencies. It provides regular updates to the financial sector, government bodies, and the public, ensuring that its actions are transparent and that market participants are informed.


==Economic Development Initiatives==
When a bank fails, the Federal Bank acts as receiver to protect depositor interests and minimize losses to the Deposit Insurance Fund. Resolution options include paying insured depositors directly, facilitating acquisition by a healthy institution, establishing a bridge bank, or liquidating assets.
The Federal Bank's initiatives for economic development are designed to stimulate growth and foster financial health across the diverse economic sectors of Nouvelle Alexandrie. The establishment of funds to support medium and long-term loans is a key feature of these initiatives, providing critical financial support to infrastructure projects, technology ventures, and small businesses that drive innovation and job creation. The bank's active participation in the open market, particularly its dealings in government and financial bonds, serves as a primary mechanism for managing the liquidity of the economy. By purchasing and selling these instruments, the Federal Bank influences interest rates and the money supply, which in turn affects investment and consumption patterns. This strategic market involvement also allows the Federal Bank to finance public debt and manage inflation, ensuring sustained economic growth.
 
==Currency operations==
 
===Issuance===
The Federal Bank holds the exclusive right to issue currency within the territory of the Federation. [[New Alexandrian écu|Écu]] notes are issued through the [[Royal Mint]], with denominations and designs approved by the [[Council of State of Nouvelle Alexandrie|Council of State]]. The Federal Bank manages the printing, minting, and distribution of notes and coins, exchanges damaged currency, and centralizes management of counterfeit notes.
 
===Payment systems===
The Federal Bank operates the [[Federal Electronic Payment System]], the national payment clearing and settlement system that processes approximately 77% of all electronic payments in Nouvelle Alexandrie. Along with [[POSTBank]], the Federal Bank provides clearing services for payments made in the écu and facilitates electronic funds transfers between financial institutions.
 
===Exchange rates===
Exchange rates for the New Alexandrian écu are determined by the Federal Bank based on market conditions, international trade, inflation, and economic indicators.
 
==Crisis response==
 
The Federal Bank has intervened in multiple financial crises since its founding, developing increasingly sophisticated response mechanisms over time.
 
{| class="wikitable"
|+ Major Federal Bank crisis interventions
|-
! Crisis !! Year !! Governor !! Key actions !! Outcome
|-
| [[Community Savings and Credit Guild Crisis of 1704|CSCG Crisis]] || {{AN|1704}} || Beaumont || Emergency interventions exceeding NAX€180 billion || Led to creation of FSISB; contributed to demand for deposit insurance
|-
| [[Recession of 1709]] || {{AN|1709}}-{{AN|1710}} || Beaumont || Managed systemic stability during bank failures || Two banks failed but no systemic contagion
|-
| [[1725 Constancian crisis]] || {{AN|1725}}-{{AN|1727}} || Lefèvre || Coordinated with Raspur Pact response; participated in EEU-CoG assistance package || Regional stability maintained; NA economy weathered spillover effects
|-
| [[New Alexandrian property sector crisis, 1727-1729|Property crisis]] || {{AN|1727}}-{{AN|1729}} || Lefèvre || Emergency liquidity; facilitated Quipu Bank acquisition of troubled banks || Prevented broader contagion; established managed consolidation precedent
|-
| [[Recession of 1737]] || {{AN|1737}} || Salazar || Federal Funds Rate cut to 2.25%; NAX€30 billion stabilization program || Short recession; recovery supported by subsequent policy measures
|-
| [[Spring Crisis of 1739]] || {{AN|1739}} || Salazar || NAX€15.2 billion market operations; temporary capital controls; coordinated NAXSE suspension || Écu recovered 90% within month; markets normalized by IV.1739
|-
| [[Federal Trust Crisis of 1749]] || {{AN|1749}} || Martel || NAX€6 billion emergency intervention; temporary asset swap facility; oversaw NADIC-to-FDIS transition || 3.2 million depositors protected; comprehensive reform enacted
|}


==Interest Rate and Credit Regulations==
==Governors==
The Federal Bank's monetary authority extends to the regulation of interest rates and credit within Nouvelle Alexandrie. By setting ceilings for bank deposit interest rates and determining a range for loan interest rates, the bank exerts control over the cost of borrowing and the incentive for savings among the populace. These regulatory measures help to curb inflationary pressures and prevent overheating in the economy. Credit limits set for financial institutions are another tool in the bank's arsenal to ensure credit expansion is sustainable and does not pose a risk to the overall financial system. Through these regulations, the Federal Bank promotes responsible lending practices, prevents excessive debt accumulation, and safeguards the federation's financial stability.


{| class="wikitable"
{| class="wikitable"
! Type of Interest Rate
|+ Governors of the Federal Bank of Nouvelle Alexandrie
! Current Rate
|-
! Rate Ceiling
! # !! Name !! Term !! Background !! Appointed by (King) !! Appointed by (Premier)
! Last Change
|-
| 1 || [[Tupac Yupanqui Rimachi]] || {{AN|1685}}-{{AN|1702}} || Wechua Nation treasury official || [[Manco Cápac|Manco Cápac I]] || [[Alejandro Campos]]
|-
|-
| Federal Funds Rate
| 2 || [[Henri-François Beaumont]] || {{AN|1702}}-{{AN|1710}} || Private banker || [[Manco Cápac|Manco Cápac I]] || [[Gerhardt Eugen Seydlitz]]
| 2.75%
| 2.75%
| {{increase}} +0.50% (10.VIII.1736)
|-
|-
| Discount Rate
| 3 || [[Rafael Antonio Fuentes]] || {{AN|1710}}-{{AN|1724}} || Career Treasury official || [[Manco Cápac|Manco Cápac I]] || [[Felipe de Almagro]]
| 3.00%
| 3.00%
| {{increase}} +0.50% (10.VIII.1736)
|-
|-
| Deposit Rate
| 4 || [[Jean-Claude Lefèvre]] || {{AN|1724}}-{{AN|1738}} || Academic economist || [[Sinchi Roca I]] || [[Paolo Antonio Aguilar]]
| 1.50%
| 1.50%
| {{increase}} +0.40% (10.VIII.1736)
|-
|-
| Bank Lending Rate
| 5 || [[Rodrigo Martín Salazar]] || {{AN|1738}}-{{AN|1745}} || Deputy Governor || [[Sinchi Roca II]] || [[Marissa Santini]]
| Range 7.00% - 7.25%
| 7.25%
| {{increase}} +0.50% (10.VIII.1736)
|-
|-
| Savings Rate
| 6 || [[Patricia Molina]] || {{AN|1745}}-{{AN|1748}} || Deputy Governor; academic economist || [[Sinchi Roca II]] || [[Juan Pablo Jimenez]]
| 1.25%
| 1.25%
| {{increase}} +0.25% (10.VIII.1736)
|-
|-
| Mortgage Rate
| 7 || [[Lucienne Martel]] || {{AN|1748}}-present || Deputy Governor || [[Sinchi Roca II]] || [[Juan Pablo Jimenez]]
| Range 6.00% - 6.25%
| 6.25%
| {{increase}} +0.50% (10.VIII.1736)
|}
|}


==Banking Oversight==
==Regional presence==
Oversight of the banking sector by the Federal Bank of Nouvelle Alexandrie is a cornerstone of the federation's financial stability. By licensing and conducting rigorous examinations of all operational banks, the Federal Bank ensures that these institutions abide by stringent solvency and operational regulations. This oversight extends to the assessment of risk management frameworks, the adequacy of capital reserves, and compliance with anti-money laundering laws. The Federal Bank's commitment to maintaining a robust and competitive banking sector is not only crucial for consumer protection but also for fostering an environment conducive to economic growth. The soundness of banks underpins the confidence of both domestic and international investors, which is essential for attracting investment and supporting economic expansion.


==Response to Economic Crises==
The Currency of Nouvelle Alexandrie Act, 1711 mandates that regional branch offices be established in each Regional capital. The Federal Bank maintains its main headquarters in [[Cárdenas]] and operates twelve regional branches across the Federation, serving the financial system in each of the [[Administrative divisions of Nouvelle Alexandrie|twelve Regions]]. The Commission for Federal Bank Regional Offices, created by the 1711 Act, directs and manages the construction and acquisition of facilities for regional branches.
The Federal Bank's response to economic crises, such as the [[Recession of 1709]], the [[1721 Oportian protests]], the [[1725 Constancian crisis]], and the [[Recession of 1726]], underscores its crucial role in safeguarding Nouvelle Alexandrie's financial health. By adeptly adjusting monetary policy, including lowering interest rates and injecting liquidity into the banking system, the bank provided much-needed stimulus to the economy. Emergency funding, facilitated through the bank's discount window, ensured that financial institutions remained solvent and could continue to provide credit to businesses and consumers. These stabilizing measures were complemented by the bank's active engagement in quantitative easing, purchasing government securities to lower long-term interest rates and support borrowing and investment. The Federal Bank's decisive actions were instrumental in mitigating impact of recessions and setting the stage for economic recovery.


==Publications and Transparency==
In locations where the Federal Bank has no branch office, the Bank may commission other banks, cooperative banks, or postal offices to act as agents for treasury operations, subject to agreement from the Department of the Treasury.
{{Main|National Economic Journal}}
Transparency and accountability are pillars of the Federal Bank of Nouvelle Alexandrie's ethos. Through its esteemed publication, the ''National Economic Journal'', the bank regularly disseminates financial updates, budget analyses, and policy decisions. These publications, available to the public, offer an in-depth look at the federation's economic performance and the bank's fiscal strategies. Detailed annual reports, submitted to the [[Council of State of Nouvelle Alexandrie|Council of State]] and the [[Cortes Federales of Nouvelle Alexandrie|Cortes Federales]], provide a comprehensive overview of the bank's activities and financial health. This commitment to transparency not only builds public trust but also informs the nation's economic discourse, enabling informed debate and policy-making at all levels of government.


==See also==
==See also==
* [[New Alexandrian écu]]
* [[Economy of Nouvelle Alexandrie]]
* [[Economy of Nouvelle Alexandrie]]
* [[New Alexandrian écu]]
* [[Financial history of Nouvelle Alexandrie]]
* [[Council of State of Nouvelle Alexandrie]]
* [[Banking in Nouvelle Alexandrie]]
* [[Cortes Federales]]
* [[Department of Treasury (Nouvelle Alexandrie)]]
* [[New Prosperity Plan]]
* [[Currency of Nouvelle Alexandrie Act, 1711]]
* [[Bank Run Prevention Act, 1718]]
* [[Comprehensive Financial Stabilization Act, 1749]]
* [[Federal Deposit Insurance System]]
* [[Nouvelle Alexandrie Deposit Insurance Corporation]]
* [[Community Savings and Credit Guild Crisis of 1704]]
* [[Federal Trust Crisis of 1749]]
* [[Federal Electronic Payment System]]
* [[Quipu Bank]]


[[Category:Government of Nouvelle Alexandrie]]
[[Category:Economy of Nouvelle Alexandrie]]
[[Category:Economy of Nouvelle Alexandrie]]
[[Category:Banking in Nouvelle Alexandrie]]
[[Category:Federal Bank of Nouvelle Alexandrie]]
[[Category:Federal Bank of Nouvelle Alexandrie]]
[[Category:Banks]]
[[Category:Government agencies of Nouvelle Alexandrie]]
[[Category:Banking in Nouvelle Alexandrie]]

Revision as of 08:25, 27 December 2025

Federal Bank of Nouvelle Alexandrie
Formed 1685 AN
Type Central bank
Jurisdiction Nouvelle Alexandrie Nouvelle Alexandrie
Headquarters Cárdenas, Federal Capital District
Deputy Governors
Governor Lucienne Martel
Parent agency Department of the Treasury
Child agencies


The Federal Bank of Nouvelle Alexandrie (Alexandrian: Banque Fédérale de Nouvelle Alexandrie; Martino: Banco Federal de Nueva Alejandría; Wechua: Musuq Aliksantriya Qullqi Wasi) is the central bank of the Federation of Nouvelle Alexandrie. Established in 1685 AN by the National Economy Act and reformed by the Currency of Nouvelle Alexandrie Act, 1711, the Federal Bank holds exclusive authority to issue the New Alexandrian écu and is responsible for monetary policy, banking supervision, and financial stability across the Federation.

The Federal Bank is headquartered in Cárdenas and operates a network of regional branch offices in each of the twelve Regional capitals. As an independent government agency under the jurisdiction of the Department of the Treasury, the Federal Bank's monetary and credit policies are established neutrally and executed independently of political direction. The current Governor is Lucienne Martel, who has served since 1748 AN.

Since its founding, the Federal Bank has managed the Federation's monetary integration, developed comprehensive banking supervision frameworks, and intervened decisively during multiple financial crises. The institution administers the Federal Deposit Insurance System, which was transferred to Federal Bank oversight from the Nouvelle Alexandrie Deposit Insurance Corporation by the Comprehensive Financial Stabilization Act, 1749. The regulatory architecture has expanded considerably over time, particularly following the Community Savings and Credit Guild Crisis of 1704, the enactment of the Bank Run Prevention Act, 1718, and the Federal Trust Crisis of 1749.

History

Founding and monetary integration (1685-1700)

The formation of the Federation of Alduria and the Wechua Nation in 1685 AN required immediate monetary integration between the two founding nations. The Federal Constituent Assembly passed the National Economy Act, which established the New Alexandrian écu as the unified currency, replacing the Aldurian écu and the Wechua sol. The Act also created the Federal Bank of Nouvelle Alexandrie as the central monetary authority, headquartered in the new federal capital of Cárdenas.

The first Governor, Tupac Yupanqui Rimachi, was selected specifically to demonstrate that the new Federation's central bank would serve both founding nations equally. A respected economist who had managed the Wechua Nation's monetary affairs before federation, Rimachi brought credibility to the integration process. The currency unification proceeded smoothly, aided by pre-existing commercial ties between Alduria and the Wechua Nation. Exchange rates were set at parity to minimize disruption, though this required careful management of money supply in both former nations.

During its first years, the Federal Bank focused on establishing credibility through conservative monetary policy while the new government embarked on ambitious spending programs under the New Prosperity Plan. Rimachi oversaw the establishment of the initial regional branch network and developed the financing mechanisms that supported territorial expansion and infrastructure development.

Early challenges and the 1711 reforms

Governor Rimachi retired in 1702 AN after 17 years of service, the longest tenure in Federal Bank history. His successor, Henri-François Beaumont, came from the private banking sector and was seen as a modernizer who would bring commercial sophistication to the institution. However, Beaumont's tenure was marked by two significant crises that exposed regulatory weaknesses.

The Community Savings and Credit Guild Crisis of 1704 revealed that the Federal Bank had inadequate supervisory capacity over the rapidly proliferating savings institutions. By 1703 AN, approximately 340 Community Savings and Credit Guilds operated across the Federation, holding combined deposits of NAX€89 billion and serving an estimated 4.2 million households. When risky investment activities led to widespread failures, the crisis required emergency interventions exceeding NAX€180 billion and created persistent budget deficits for nearly half a decade.

The Recession of 1709, triggered by external shocks and the Natopian division, further strained the financial system. Two larger banking institutions, the Bank of Southern Alduria and TransFederal Bank, filed for bankruptcy in 1710 AN, though the broader banking system avoided systemic contagion.

Critics argued Beaumont had been too close to the banking sector he was meant to regulate. When Premier Felipe de Almagro's Federal Humanist Party government took power in 1708 AN, Beaumont's position became untenable. He resigned in 1710 AN, officially citing the need for fresh leadership to implement necessary reforms.

Premier de Almagro appointed Rafael Antonio Fuentes, a career Treasury official with no ties to the private banking sector and a reputation for incorruptibility. Fuentes worked closely with de Almagro on drafting the Currency of Nouvelle Alexandrie Act, 1711, which comprehensively reformed the Federal Bank's governance structure, codified its independence provisions, and clarified its statutory mandates. The Act established the modern framework for Governor and Deputy Governor appointments, created the Board of Directors structure, and defined the Federal Bank's relationship with the Treasury and Council of State.

Under Fuentes, the Federal Bank established the Federal Savings Institutions Supervisory Board to prevent another CSCG-style crisis, expanded the regional branch network, and developed the stress testing protocols that would prove valuable in future crises. Fuentes professionalized the examination corps and created clear separation between monetary policy and supervisory functions. He served until 1724 AN and is generally regarded as the architect of the modern Federal Bank.

The Bank Run Prevention Act and deposit insurance (1718-1719)

The experiences of the CSCG Crisis and the Recession of 1709 led to sustained demand for formal deposit insurance. In 1718 AN, Deputy Daniel Valkory introduced the Bank Run Prevention Act, 1718 to the Federal Assembly. The Act received Royal Assent in 1719 AN and established the Nouvelle Alexandrie Deposit Insurance Corporation (NADIC) as a government-sponsored corporation to protect depositors in the event of bank failure.

NADIC was structured as an independent entity with its own board of directors appointed by the Secretary of the Treasury. The corporation was funded through fees charged to member banks and backed by a government guarantee. Deposit insurance coverage was set by the Department of the Treasury, resulting in regional variations ranging from NAX€50,000 to NAX€250,000 depending on jurisdiction.

The Bank Run Prevention Act also authorized banks to impose temporary withdrawal restrictions during bank runs, established reporting requirements for bank financial conditions, and explicitly authorized the Federal Bank to extend credit in unusual or exigent circumstances to banks facing temporary liquidity issues. The Act prohibited commercial banks from engaging in proprietary trading, defined as using customer deposits to trade on the bank's own accounts for profit.

Governor Fuentes oversaw the initial implementation of the deposit insurance system, which operated alongside the Federal Bank's existing supervisory functions.

The Alexandrium era and regional crises

Governor Jean-Claude Lefèvre, an academic economist and former rector of the University of Cárdenas, took office in 1724 AN and served until 1738 AN. His tenure coincided with the emergence of Alexandrium as an economic force and the challenges of managing both sudden wealth and regional economic turbulence.

The 1725 Constancian crisis created spillover effects across the Raspur Pact, including Nouvelle Alexandrie. The crisis, characterized by severe inflation and political instability in Constancia, required coordinated international response. The Federal Bank participated in discussions with the Euran Economic Union and Community of Goldfield as Nouvelle Alexandrie joined Natopia and the Benacian Union in providing assistance to stabilize the Constancian economy. The Great Skerry-Valencian Drought (1720-1728), which affected both Constancia and parts of Nouvelle Alexandrie, compounded economic pressures during this period.

Lefèvre navigated the Recession of 1726 and the property sector crisis of 1727-1729. During the property crisis, two major developers, Stellar Homes and Alexis Development Group, failed in rapid succession, threatening regional banking institutions with significant real estate exposure. The Federal Bank coordinated with the Department of the Treasury to provide emergency liquidity and facilitated Quipu Bank's acquisition of the troubled Northern Development Bank of Lyrica and Southern Investment Bank of Lyrica, establishing the precedent for managed consolidation that would be used in future crises.

Lefèvre maintained the Federal Bank's independence through the transition from FHP to Federal Consensus Party government in 1729 AN, and continued serving after King Sinchi Roca I's death and King Sinchi Roca II's accession in 1735 AN.

Recession and Spring Crisis (1737-1739)

Rodrigo Martín Salazar, promoted from Deputy Governor in 1738 AN, became the first Governor elevated through internal succession. Within months of taking office, he faced the aftermath of the Recession of 1737, which had been triggered by the East Keltian Collapse and the naval blockade and war in Benacia. The Federal Bank lowered the Federal Funds Rate to 2.25% and implemented a NAX€30 billion market stabilization program.

The Spring Crisis of 1739 tested the Federal Bank differently. During the three-day coup attempt, the Nouvelle Alexandrie Stock Exchange suspended all trading from 3.III.1739 AN to 5.III.1739 AN after an unprecedented 12% drop in the first hour. The écu fell sharply against major currencies, declining 4.2% against the Natopian natopo and 3.8% against the Craitish cräite.

Governor Salazar deployed NAX€15.2 billion in market operations to maintain liquidity, exercising the Federal Bank's authority under the Bank Run Prevention Act, 1718 to extend credit in exigent circumstances. He also implemented temporary capital controls to prevent currency speculation. Corporate bond yields spiked by 180 basis points before stabilizing after Premier Marissa Santini's announcement of emergency economic measures. By month's end, the écu had recovered 90% of its losses, and the stock exchange index returned to pre-crisis levels by IV.1739 AN.

Recent developments and the 1749 reforms

Patricia Molina, appointed in 1745 AN, became the first woman to serve as Governor. Her tenure focused on post-war economic normalization and managing the challenges of the Alexandrium boom. In 1746 AN, she issued a notable statement on the emerging cryptocurrency phenomenon, acknowledging citizens' right to make investment decisions while warning of significant risks inherent in unregulated digital assets. Molina retired in early 1748 AN, citing a desire to spend more time with family and pursue academic work.

Lucienne Martel, promoted from Deputy Governor, took office in 1748 AN. Her defining moment came during the Federal Trust Crisis of 1749. Beginning in VII.1749 AN, Federal Bank monitoring systems detected widespread liquidity problems across interconnected regional lenders. Five major regional banks, Beaufort Mutual, Coastal Savings of Lyrica, First Agricultural Bank of the South, Lyrica Commonwealth Trust, and Merchant's Bank of Fontainebleau, had accumulated NAX€4.3 billion in non-performing loans, primarily concentrated in shell companies connected to the North Lyrica logging scandal.

On 22.VII.1749 AN, Governor Martel worked alongside Premier Juan Pablo Jimenez through an extraordinary overnight negotiating session. The resulting NAX€6 billion emergency intervention, structured as a temporary asset swap facility backed by bank equity rather than taxpayer guarantees, protected 3.2 million depositors without public funds losses.

By early IX.1749 AN, credit markets had contracted severely despite the emergency intervention. Premier Jimenez convened an emergency session of the Cortes Federales on 11.IX.1749 AN. The Comprehensive Financial Stabilization Act, 1749, shepherded through negotiations by Defense Secretary José Manuel Montero, passed on 14.IX.1749 AN with a 612-137 supermajority vote and received Royal Assent on 16.IX.1749 AN.

The Act fundamentally restructured the deposit insurance system. The Nouvelle Alexandrie Deposit Insurance Corporation was absorbed into the Federal Bank as the Federal Deposit Insurance System, with standardized coverage of NAX€500,000 per depositor replacing the previous patchwork of regional variations. The Act also established the Division of Regional Financial Institutions within the Federal Bank, with authority to conduct stress tests and enhanced oversight of regional banks. Governor Martel completed the transition from NADIC to the Federal Deposit Insurance System by X.1749 AN and oversaw the Division's first comprehensive stress tests in XII.1749 AN.

Interbank lending rates, which had spiked to 12% during the crisis, normalized to 4.5% by XI.1749 AN. Governor Martel continues to serve under Premier José Manuel Montero's government, which took office following the 1749 AN general election.

Organization and governance

Legal framework

The Federal Bank operates under the authority of three primary statutes. The Currency of Nouvelle Alexandrie Act, 1711 defines it as a government-owned independent agency under the jurisdiction of the Department of the Treasury and establishes that the Federal Bank's monetary and credit policies shall be established neutrally and executed independently. The Bank Run Prevention Act, 1718 authorizes the Federal Bank to act as lender of last resort and originally created the Nouvelle Alexandrie Deposit Insurance Corporation. The Comprehensive Financial Stabilization Act, 1749 transferred deposit insurance administration to the Federal Bank and created the Division of Regional Financial Institutions.

The statutory mandates of the Federal Bank are to promote financial stability, guide sound banking operations, maintain the stability of the internal and external value of the écu, and foster economic development within the scope of these objectives.

Governor and Deputy Governors

The Federal Bank is headed by a Governor, who serves as chief executive and chairman of the Board of Directors. The Governor is nominated by the President of the Government, with the advice and consultation of the Secretary of the Treasury, and appointed by the King after confirmation by a majority vote of the Federal Assembly.

The Currency of Nouvelle Alexandrie Act, 1711 does not specify a term limit for Governors. In practice, Governors have served terms ranging from three to seventeen years, with most serving approximately seven to fourteen years. The convention of extended tenures has contributed to institutional stability and policy continuity across changes in government.

The Governor may have up to two Deputy Governors, nominated by the Secretary of the Treasury on the recommendation of the President of the Government, and appointed by the King for four-year terms. Deputy Governors may be reappointed upon expiration of their terms. Since 1738 AN, three consecutive Governors have been promoted from Deputy Governor positions, establishing internal succession as a common pathway to the top position.

Board of Directors

The Board of Directors consists of the Governor as chairman, the Deputy Governors, directors nominated by the Department of the Treasury on the advice of the Premier and appointed by the King for four-year renewable terms, and four ex-officio members: the Secretary of the Treasury, the Secretary of State, and the Secretary of Social Security and National Solidarity.

The Board examines policies concerning money, credit, and foreign exchange; approves operation plans, budgets, and major regulations; examines the Federal Bank's assets, liabilities, and accounts; and oversees the establishment and abolition of branch offices. The Board may delegate powers to the Governor, subject to reporting requirements.

Monetary policy

Mandate and objectives

The Federal Bank determines the price stabilization target in consultation with the Council of State and annually establishes and publicizes the operational directions for its monetary and credit policies. The Currency of Nouvelle Alexandrie Act, 1711 requires the Federal Bank to do its best to achieve the price stabilization target while valuing the market mechanism in performing its policies.

Policy instruments

The Federal Bank conducts open market operations, purchasing and selling government bonds, financial bonds issued by banks, and bills accepted or guaranteed by banks. The Federal Bank may prescribe upper limits for bank deposit interest rates and approve ranges for loan interest rates proposed by bankers' associations. When monetary and credit conditions warrant, the Federal Bank may prescribe maximum limits for various kinds of credit extended by financial institutions.

The Federal Funds Rate serves as the primary policy rate. During the Recession of 1737, the rate was lowered to 2.25% as part of monetary easing measures. Following the Federal Trust Crisis of 1749, interbank lending rates normalized to approximately 4.5% by XI.1749 AN.

Lender of last resort

The Bank Run Prevention Act, 1718 explicitly authorizes the Federal Bank to extend credit in unusual or exigent circumstances to banks and other financial institutions facing temporary liquidity issues. The Federal Bank has established guidelines and criteria for extending such credit, including terms, collateral requirements, and interest rates. This authority has been exercised during multiple crises, including the Spring Crisis of 1739 and the Federal Trust Crisis of 1749.

Banking supervision

Licensing and examination

Under the Currency of Nouvelle Alexandrie Act, 1711, the Federal Bank licenses and examines all banks operating within Nouvelle Alexandrie and establishes general regulations for their operation, regulation, and solvency. The examination corps, professionalized under Governor Fuentes in the 1710s, conducts regular inspections and stress testing of banking institutions.

Supervisory divisions

The Federal Savings Institutions Supervisory Board, created following the Community Savings and Credit Guild Crisis of 1704, oversees savings institutions under frameworks refined through subsequent crises. The Board was established to prevent the regulatory gaps that allowed the CSCG crisis to develop.

The Division of Regional Financial Institutions, established by the Comprehensive Financial Stabilization Act, 1749, provides enhanced oversight of regional banks. The Division employs a minimum of 200 federal banking examiners with expertise in credit analysis, asset valuation, and risk management. It conducts annual stress tests of all banks with assets exceeding NAX€5 billion, modeling severe but plausible adverse scenarios including property price declines, commodity market volatility, and credit contraction. Banks failing stress tests must submit capital restoration plans within 60 days. The Division may impose restrictions on dividend payments, executive compensation, and new lending until capital adequacy is restored.

Proprietary trading prohibition

The Bank Run Prevention Act, 1718 prohibits commercial banks from engaging in proprietary trading, defined as using customer deposits to trade on the bank's own accounts for the primary purpose of generating profits for the bank. Commercial banks must implement measures to segregate customer deposits from trading activities. The Federal Bank and Nouvelle Alexandrie Deposit Insurance Corporation (now the Federal Deposit Insurance System) monitor compliance with the prohibition, with violations subject to fines, operational restrictions, and potential license revocation.

Deposit insurance

See alsos: Federal Deposit Insurance System and Nouvelle Alexandrie Deposit Insurance Corporation

The Federal Deposit Insurance System, established by the Comprehensive Financial Stabilization Act, 1749, provides standardized coverage of NAX€500,000 per depositor, per insured bank. The system replaced the Nouvelle Alexandrie Deposit Insurance Corporation (NADIC), which had operated since 1719 AN with regional variations in coverage ranging from NAX€50,000 to NAX€250,000.

Under the 1749 Act, all functions, powers, assets, and liabilities of NADIC were transferred to the Federal Bank. The NADIC board of directors was dissolved, and authority is now vested in the Governor of the Federal Bank. All banks operating in the Federation must participate in the Federal Deposit Insurance System. Premium rates are calibrated to each institution's risk profile, with higher-risk lenders paying proportionally higher premiums. The system must maintain reserves equal to at least 2% of total insured deposits.

When a bank fails, the Federal Bank acts as receiver to protect depositor interests and minimize losses to the Deposit Insurance Fund. Resolution options include paying insured depositors directly, facilitating acquisition by a healthy institution, establishing a bridge bank, or liquidating assets.

Currency operations

Issuance

The Federal Bank holds the exclusive right to issue currency within the territory of the Federation. Écu notes are issued through the Royal Mint, with denominations and designs approved by the Council of State. The Federal Bank manages the printing, minting, and distribution of notes and coins, exchanges damaged currency, and centralizes management of counterfeit notes.

Payment systems

The Federal Bank operates the Federal Electronic Payment System, the national payment clearing and settlement system that processes approximately 77% of all electronic payments in Nouvelle Alexandrie. Along with POSTBank, the Federal Bank provides clearing services for payments made in the écu and facilitates electronic funds transfers between financial institutions.

Exchange rates

Exchange rates for the New Alexandrian écu are determined by the Federal Bank based on market conditions, international trade, inflation, and economic indicators.

Crisis response

The Federal Bank has intervened in multiple financial crises since its founding, developing increasingly sophisticated response mechanisms over time.

Major Federal Bank crisis interventions
Crisis Year Governor Key actions Outcome
CSCG Crisis 1704 AN Beaumont Emergency interventions exceeding NAX€180 billion Led to creation of FSISB; contributed to demand for deposit insurance
Recession of 1709 1709 AN-1710 AN Beaumont Managed systemic stability during bank failures Two banks failed but no systemic contagion
1725 Constancian crisis 1725 AN-1727 AN Lefèvre Coordinated with Raspur Pact response; participated in EEU-CoG assistance package Regional stability maintained; NA economy weathered spillover effects
Property crisis 1727 AN-1729 AN Lefèvre Emergency liquidity; facilitated Quipu Bank acquisition of troubled banks Prevented broader contagion; established managed consolidation precedent
Recession of 1737 1737 AN Salazar Federal Funds Rate cut to 2.25%; NAX€30 billion stabilization program Short recession; recovery supported by subsequent policy measures
Spring Crisis of 1739 1739 AN Salazar NAX€15.2 billion market operations; temporary capital controls; coordinated NAXSE suspension Écu recovered 90% within month; markets normalized by IV.1739
Federal Trust Crisis of 1749 1749 AN Martel NAX€6 billion emergency intervention; temporary asset swap facility; oversaw NADIC-to-FDIS transition 3.2 million depositors protected; comprehensive reform enacted

Governors

Governors of the Federal Bank of Nouvelle Alexandrie
# Name Term Background Appointed by (King) Appointed by (Premier)
1 Tupac Yupanqui Rimachi 1685 AN-1702 AN Wechua Nation treasury official Manco Cápac I Alejandro Campos
2 Henri-François Beaumont 1702 AN-1710 AN Private banker Manco Cápac I Gerhardt Eugen Seydlitz
3 Rafael Antonio Fuentes 1710 AN-1724 AN Career Treasury official Manco Cápac I Felipe de Almagro
4 Jean-Claude Lefèvre 1724 AN-1738 AN Academic economist Sinchi Roca I Paolo Antonio Aguilar
5 Rodrigo Martín Salazar 1738 AN-1745 AN Deputy Governor Sinchi Roca II Marissa Santini
6 Patricia Molina 1745 AN-1748 AN Deputy Governor; academic economist Sinchi Roca II Juan Pablo Jimenez
7 Lucienne Martel 1748 AN-present Deputy Governor Sinchi Roca II Juan Pablo Jimenez

Regional presence

The Currency of Nouvelle Alexandrie Act, 1711 mandates that regional branch offices be established in each Regional capital. The Federal Bank maintains its main headquarters in Cárdenas and operates twelve regional branches across the Federation, serving the financial system in each of the twelve Regions. The Commission for Federal Bank Regional Offices, created by the 1711 Act, directs and manages the construction and acquisition of facilities for regional branches.

In locations where the Federal Bank has no branch office, the Bank may commission other banks, cooperative banks, or postal offices to act as agents for treasury operations, subject to agreement from the Department of the Treasury.

See also

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