Banking in Packilvania

Regulatory environment

Banking privacy

Banking privacy is not a fundamental right. It exists within the context of other rights such as the right to privacy, and to engage in commerce and trade, and can be circumscribed in the public and national interests. As such, banks are required to demand supporting documents such as identity documents and proofs of residence or corporate registration certificate when opening bank accounts for individuals and organisations. A risk based assessment of the financial history of a person is required to determine the kinds of financial products to which they have access. Banks are allowed to stop transactions that they believe are fraudulent or unlawful, and they are required to report potentially unlawful financial transactions to the authorities.

Capital controls

Capital controls are implemented which restrict the amount of money that can be moved by persons into and out of the country as well as to other persons in the country. For instance, only cash of up to 120 million Packilvanian dinars may be exported out of the country in a single transaction. Private persons may only pay 240 million Packilvanian dinars to another person at a time. Transactions over 120 billion Packilvanian dinars require approval by a government body.

Digital wallets and currency

Most online and mobile financial services such as Debby allow users to load their bank card (such as a Plexis card) onto their devices and initiate transactions by scanning a code etc. Some of them allow users to deposit money into a wallet which they can use to send money to other users. This area has been underregulated and the banking sector has called for legislation to impose requirements on these organisations and the digital tools they use.

Decentralised finance has ballooned in the country as a means to avoid the onerous tax and disclosure obligations of money held in banks etc. This normally entails users using an encrypted wallet to transact with other users or nodes on a block chain network by holding and receiving some form of cryptocurrency which they can exchange for goods and services or real currency. With low cost electricity and computers, Packilvania has been a leading country in the decentralised finance space. Even though some banks have specialised in cryptocurrency, the government has been increasingly vocal about suppressing cryptocurrency to combat money laundering and financial fraud.

Ethical investing

Incentives such as but not limited to tax obligation reductions exist for individuals and entities who invest their funds in line with ethical objectives promoted by the government. This entails investing in sectors, businesses and financial instruments recognised by the Magisterium of Paxism to conform to the precepts of Paxism as envisioned in the Writings of Paxism and the canon law of Paxism. Additionally, investment into businesses that meet environmental sustainability standards set by the Department of the Environment and Food Security as well as socially responsible investment as determined by the Department of Social Development.

Central Bank

The Packilvanian Central Bank is the central bank of Packilvania. It is the banker to the government and the lender of last resort. It issues the national currency, the Packilvanian dinar, and controls monetary policy. It is owned entirely by the Government of Packilvania through the Department of Finance (also known as the Imperial Treasury). The incumbent governor of the bank is Lord Mudeen a-Henad Zubeer, the Earl of Parhoud. The bank is independent from the government and is run by its board.

Regulatory bodies

The Packilvanian Central Bank (PCB) is responsible for issuing banking regulations in the country. This entails prescribing governance, liquidity requirements, financing requirements and operational requirements as well as foreign exchange and capital controls. The Imperial Revenue Services (IRS) sets out the tax requirements for the banking sector in line with tax legislation. Financial Services Regulatory Board (FSRB) regulates other financial services but it also issues regulations with regard to investments both by banks and through banks on behalf of their clients.

List of banks in Packilvania

Systemically important banks

The four largest banks in the country (referred to as the Big Four) make up over ⅔ of the banking in the country in terms of transactions, assets under management, clients and lending. They are designated as systemically important banks by the Packilvanian Central Bank because their failure or collapse could lead far reaching effects and significantly harm the economy. As such, these banks are subjected to frequent and more rigorous stress tests, more stringent governance and liquidity requirements. The two largest of these banks have been designated as globally systemically important banks by international organisations such as the Auroran Central Bank.

• Industrial and Commercial Bank of Packilvania (ICBP) is the largest bank in the country. It provides commercial banking services to businesses and people.
• Agricultural Bank of Packilvania (ABP) provides banking services to farming and associated industries.
• Export-Import Bank of Packilvania (EXIMBP) provides banking services to organisations and persons that import and export goods and services to and from Packilvania.
• Packilvanian Development Bank (PDB) provides financing and banking services for infrastructure and property development projects to Packilvanian and foreign organisations and persons.