International Banking Charter

[Toraston]

INTERNATIONAL BANKING CHARTER
PART I - PREAMBLE AND DEFINITION
The World Assembly;
Aware of the varying statuses and states of Banks throughout the World;
Wishing to bring uniformity to the organization of Banks;
Wishing to set down certain guidelines to which all banks should adhere;
Hereby introduces the International Banking Charter.
This Resolution, for the sake of simplicity, defines a "Bank" as a financial institution within a Nation.

PART II - THE CHARTER
All Banks which operate throughout the Countries of the World Assembly may only operate as Banks if they are registered with the National financial services Authority or similar.
National Banks must be subjected to Solvency checks by either National Governments or Financial regulators at least once every three years. These tests shall be devised by the International Banking Union, a Regulator with the express aim of overseeing the Regulation of Banks and the upholding of this Charter.
This Charter will invest in relevant authorities the powers of nationalizing a Bank should the Bank fail any solvency test.

Part III - the International Banking Union and its rights, responsibilities and Powers
The International Banking Union, being a Regulatory body for the Banking industry, will have the Powers of Regulation and issuing of Solvency Test Guidelines to Relevant National Authorities. It shall have the power to decide on international banking policy in the time of crises if necessary.


OOC: This is my first proposal, however, I am debarred from actual submission, so Charlotte Ryberg will help on that front and other fronts.

[Goroslavia]

thats stupid regulation of banks and registration of all banks would be impossible or at least very time consuming

[Sanctaria]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

[Goroslavia]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

my computer only posted the first 2 words i edited

[Sanctaria]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

my computer only posted the first 2 words i edited

Alas. I felt the first two words would have summed up the opinion of the majority of the World Assembly. Your re-edited version was also quite valid, I find.

[Goroslavia]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

my computer only posted the first 2 words i edited

Alas. I felt the first two words would have summed up the opinion of the majority of the World Assembly. Your re-edited version was also quite valid, I find.

i actually just resigned from the WA as its pointless

[Krioval]

This Resolution, for the sake of simplicity, defines a "Bank" as a financial institution within a Nation.

That does not clarify things. Plenty of agencies could be construed as "financial institution[s]" based on their dealing with money.

All Banks which operate throughout the World may only operate as Banks if they are registered with the National financial services Authority or similar.

What does this mean? Please elaborate. Krioval does not want regulation for the purpose of regulation, or committees for the sake of committees.

National Banks must be subjected to Solvency checks by either National Governments or Financial regulators at least once every three years. These tests shall be devised by the International Banking Union, a Regulator with the express aim of overseeing the Regulation of Banks and the upholding of this Charter.

This is beyond the scope of what Krioval feels is the mandate of the World Assembly. We should not be compelled to report any information on our banking institutions to a WA committee, especially one that is prone to one-size-fits-all regulations.

This Charter will invest in relevant authorities the powers of nationalizing a Bank should the Bank fail any solvency test.

Nations already can do this if they want or need to. We do not need special dispensation from the WA to conduct our national business.

The International Banking Union, being a Regulatory body for the Banking industry, will have the Powers of Regulation and issuing of Solvency Test Guidelines to Relevant National Authorities.

Unless you are interested in developing as many protocols as there are nations, this is doomed to failure.

All Willing National Governments shall, by application, become Members of the International Banking Union.

This clause is illegal due to optionality. WA resolutions are automatically binding on all WA states.

Henrik Søgård
Imperial Chiefdom of Krioval

[Holy Roman Confederate]

resigned? well, that was painless. brining quick and easy to the masses. very nice.

[Sanctaria]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

my computer only posted the first 2 words i edited

Alas. I felt the first two words would have summed up the opinion of the majority of the World Assembly. Your re-edited version was also quite valid, I find.

i actually just resigned from the WA as its pointless

That's slightly extreme. I know the proposal is bad, but I won't be resigning from the WA just because of it.

My own two cents on the matter is that while the spirit is admirable, this Ambassador just couldn't support such a micromanaging yet very broad act.

Yours.,

[Goroslavia]

thats stupid

Blunt, and to the point. Who ever said democracy and diplomacy was a hard game obviously never met this fellow.

my computer only posted the first 2 words i edited

Alas. I felt the first two words would have summed up the opinion of the majority of the World Assembly. Your re-edited version was also quite valid, I find.

i actually just resigned from the WA as its pointless

That's slightly extreme. I know the proposal is bad, but I won't be resigning from the WA just because of it.

My own two cents on the matter is that while the spirit is admirable, this Ambassador just couldn't support such a micromanaging yet very broad act.

Yours.,

Not over this proposal i find it stupid how WA resolutions are mandatory and often rather stupid

[Krioval]

Not over this proposal i find it stupid how WA resolutions are mandatory and often rather stupid

Some are, and some aren't. Even if your nation will not participate directly in the WA, you are certainly welcome to observe and comment on proposals as you wish.

Henrik Søgård
Imperial Chiefdom of Krioval

[Freeoplis]

All Banks which operate throughout the World may only operate as Banks if they are registered with the National financial services Authority or similar.

National Banks must be subjected to Solvency checks by either National Governments or Financial regulators at least once every three years.

This Charter will invest in relevant authorities the powers of nationalizing a Bank should the Bank fail any solvency test.

The above clauses we note are the essence of the proposal, all banks must be registered, have a solvency check carried out and if they fail such a check they are to be nationalized. In light of this we don't see such legislation as doing much or anything that National governments can 't do at a domestic level. If a bank goes under the decision must be made whether to bail it out or let it go under, nothing much will change under this proposal.

[Charlotte Ryberg]

The above clauses we note are the essence of the proposal, all banks must be registered, have a solvency check carried out and if they fail such a check they are to be nationalized. In light of this we don't see such legislation as doing much or anything that National governments can 't do at a domestic level. If a bank goes under the decision must be made whether to bail it out or let it go under, nothing much will change under this proposal.

Complete with the optionality of membership in the organization this draft seems to do too little to be considered useful. What about the pyramid schemes? I think that would be more a important thing to be banned.

[Toraston]

The above clauses we note are the essence of the proposal, all banks must be registered, have a solvency check carried out and if they fail such a check they are to be nationalized. In light of this we don't see such legislation as doing much or anything that National governments can 't do at a domestic level. If a bank goes under the decision must be made whether to bail it out or let it go under, nothing much will change under this proposal.

Complete with the optionality of membership in the organization this draft seems to do too little to be considered useful. What about the pyramid schemes? I think that would be more a important thing to be banned.

In that case, what clauses should be added?

[Bears Armed]

The members of Bears Armed Mission share the doubts that various of our foreign colleagues here have already raised about the desirability of this proposal, and about its current wording.
Additionally:

The Peoples of the World Assembled;

This should be "The World Assembly;".

All Banks which operate throughout the World

Illegal, seeks to affect non-WA nations.

Part III - the International Banking Union and its rights, responsibilities and Powers
The International Banking Union, being a Regulatory body for the Banking industry, will have the Powers of Regulation and issuing of Solvency Test Guidelines to Relevant National Authorities.
All Willing National Governments shall, by application, become Members of the International Banking Union.

Apparently illegal for a breach of the rule about committee membership.

[Toraston]

The members of Bears Armed Mission share the doubts that various of our foreign colleagues here have already raised about the desirability of this proposal, and about its current wording.
Additionally:

The Peoples of the World Assembled;

This should be "The World Assembly;".

All Banks which operate throughout the World

Illegal, seeks to affect non-WA nations.

Part III - the International Banking Union and its rights, responsibilities and Powers
The International Banking Union, being a Regulatory body for the Banking industry, will have the Powers of Regulation and issuing of Solvency Test Guidelines to Relevant National Authorities.
All Willing National Governments shall, by application, become Members of the International Banking Union.

Apparently illegal for a breach of the rule about committee membership.

tweaked

[NERVUN]

*From over at the Secretariat's Desk, the current seat warmer ahems a bit at the current side debate about the WA*

OOC: Stay on target folks.

[Bears Armed]

This Resolution, for the sake of simplicity, defines a "Bank" as a financial institution within a Nation.

*(giggles)*

"Oh, look, they're including nations' 'Treasury' departments within their definition of the term 'Banks'..."


Urra o HighPeaks,
Apprentice Voice, Bears Armed Mission at the World Assembly.

[Grays Harbor]

i actually just resigned from the WA as its pointless

You resigned? Over a draft which is still in the debate stage? One that hasn't been submitted for approval by delegates for approval? Or reached queue? Or been voted on by the WA membership? Or been passed? That is just a tad extreme and preemptive, I would believe.

[Grays Harbor]

This seems unwarranted micromanagement of national banking law to us. We can see no purpose to this beyond providing an additional layer of pointless regulation where one is not required.

[Flibbleites]

This seems unwarranted micromanagement of national banking law to us. We can see no purpose to this beyond providing an additional layer of pointless regulation where one is not required.

I concur, especially in the light that most banks in The Rogue Nation of Flibbleites don't operate internationally so why should an international organization be able to tell them how to operate?

Bob Flibble
WA Representative

[The Ainocran Embassy]

What about national level banks?

such as the Central Reserve Bank of Ainocra, if it fails who nationalizes it?

Would the regional government then be required to step in?
What about a Region's central bank?

Regardless of the answers to these important questions I must stand in opposition to this proposal.
There are simply too many disparate financial systems within the WA for such a set of regulations to be drawn up, much less to work effectively.

[Embolalia]

INTERNATIONAL BANKING CHARTER
PART I - PREAMBLE AND DEFINITION
The World Assembly;
Aware of the varying statuses and states of Banks throughout the World;

Good so far

Wishing to bring uniformity to the organization of Banks;

To their organization? Why? Who cares how they're organized, as long as they work?

Wishing to set down certain guidelines to which all banks should adhere;
Hereby introduces the International Banking Charter.

Not the usual format, but okay.

This Resolution, for the sake of simplicity, defines a "Bank" as a financial institution within a Nation.

A bit broad, don't you think? Besides, one could always be a pain and ask what a "financial institution" is...

PART II - THE CHARTER
All Banks which operate throughout the Countries of the World Assembly may only operate as Banks if they are registered with the National financial services Authority or similar.

And what is the "National financial services Authority"? What qualifies "similar"?

National Banks must be subjected to Solvency checks by either National Governments or Financial regulators at least once every three years. These tests shall be devised by the International Banking Union, a Regulator with the express aim of overseeing the Regulation of Banks and the upholding of this Charter.

What will the tests entail? Who are the financial regulators?

This Charter will invest in relevant authorities the powers of nationalizing a Bank should the Bank fail any solvency test.

Who are relevant authorities? What about banks that are already nationalized? Why is nationalization automatically considered better than allowing for their failure?

Part III - the International Banking Union and its rights, responsibilities and Powers
The International Banking Union, being a Regulatory body for the Banking industry, will have the Powers of Regulation and issuing of Solvency Test Guidelines to Relevant National Authorities. It shall have the power to decide on international banking policy in the time of crises if necessary.

Completely lacking any sort of definition. Obviously suggesting that nationalization is the ultimate end of a failed bank. Micromanaging fiscal policies that don't affect the international community. No thanks.

[Freeoplis]

The above clauses we note are the essence of the proposal, all banks must be registered, have a solvency check carried out and if they fail such a check they are to be nationalized. In light of this we don't see such legislation as doing much or anything that National governments can 't do at a domestic level. If a bank goes under the decision must be made whether to bail it out or let it go under, nothing much will change under this proposal.

Complete with the optionality of membership in the organization this draft seems to do too little to be considered useful. What about the pyramid schemes? I think that would be more a important thing to be banned.

In that case, what clauses should be added?

Well for a start tackling the reasons why banks become insolvent would create a proposal which protects against it. A few examples would be to split the retail and investment sides of banks, retail holds the depositors money and is generally always profitable, the problem is when the investment side can gamble with those deposits at great risk, secondly setting a threshold for the ratio to which banks can lend in comparison to the actual money that they have deposited with them by customers, again this would create a certain level of capital within banks for when loans/mortgages default. These are some of the practical steps that would provide for a more substantial piece of legislation.

[Grays Harbor]

The above clauses we note are the essence of the proposal, all banks must be registered, have a solvency check carried out and if they fail such a check they are to be nationalized. In light of this we don't see such legislation as doing much or anything that National governments can 't do at a domestic level. If a bank goes under the decision must be made whether to bail it out or let it go under, nothing much will change under this proposal.

Complete with the optionality of membership in the organization this draft seems to do too little to be considered useful. What about the pyramid schemes? I think that would be more a important thing to be banned.

In that case, what clauses should be added?

Well for a start tackling the reasons why banks become insolvent would create a proposal which protects against it. A few examples would be to split the retail and investment sides of banks, retail holds the depositors money and is generally always profitable, the problem is when the investment side can gamble with those deposits at great risk, secondly setting a threshold for the ratio to which banks can lend in comparison to the actual money that they have deposited with them by customers, again this would create a certain level of capital within banks for when loans/mortgages default. These are some of the practical steps that would provide for a more substantial piece of legislation.

And yet still far too intrusive and micromanaging.