SimDem State Bank Act 2025

SimDem State Bank Act 2025

Passed and signed 11 November 2025.

Author: SDSB Manager absolutejerktobi

Sponsor: Senator Zepz, Senator ARandomInternetGuy, Senator Rein

Preamble

Whereas the economy is a vital part of the SimDemocracy and a functional central bank is necessary to run one.

Whereas the current economic model is lacking.

Whereas reform is needed for a healthier economy.

Article 1: SimDem State Bank as a Central Bank

§1. The SimDemocracy State Bank (SDSB) is the central bank of SimDem. It is an independent body, established for the purpose of maintaining a stable economy, within the meaning of Part 1, Article 4, §3 of the Constitution.

§2. The SDSB shall determine and execute monetary policy, strive to maintain price stability, and the overall health of the economy. It shall mint the tau as the official currency of SimDemocracy.

§3. The SDSB shall perform oversight over financial institutions within the meaning of the Bank Note Regulations Act 2025; it shall further perform regulation and oversight under that Act.<ref name="BEA">Banking and Economy Amendments Act 2026 passed by the Senate on 9 February 2026, and not vetoed by the President within 72 hours.</ref>

§4. The SDSB shall further:

§4.1. establish and maintain accounts for all commercial banks and certain other regulated financial institutions, specifically those which accept deposits or those which provide loans or those which are of a similar nature (hereinafter “commercial banks”), for which the SDSB functions as the primary regulatory body. <ref name="BEA" />

§4.2. establish and maintain accounts for government bodies under the SimDem State Budget.

§4.3. keep a list of all commercial banks and the status of their licence (licensed, suspended, revoked, revoked and liquidated)

Article 2: Governance

§1. The SDSB is governed by the SDSB Governor.

§2. The SDSB Governor is appointed by the President, subject to confirmation by the Senate.

§3. The SDSB Governor shall decide on all matters within its competence under this Act, and all other matters not given into the competence of another SDSB body or employee under this Act.

§3.1. They may delegate powers not explicitly granted to them as a body by law onto another SDSB body or employee.

§4. The SDSB Governor may establish lower positions and their duties within the SDSB to help with their work load.

§5. The SDSB Governor shall run the SDSB on a daily basis and represent it externally, and ensure the implementation of the decisions of the SDSB.

§5.1. The SDSB governor may authorize other employees of the SDSB with the performance of certain duties granted explicitly to them.

Article 3: Regulation

§1. The SDSB Governor may establish:

§1.1. a repo rate, lombard rate, and discount rate (hereinafter “interest rates”).

§1.2. mandatory reserves commercial banks must hold in accounts at the SDSB and or have on hand.

§1.3. the amount of periodical or one-time payments made into the SimDem Economic Crisis Fund by commercial banks and certain types of financial institutions.

§1.4. fees due in connection with keeping accounts at the SDSB and fees for other services provided by the SDSB; the Department of the Treasury covers fees in connection with all state accounts to ease bureaucracy.

§1.5. requirements, within the limits of valid laws, for the creation, operation, sale and liquidation of commercial banks and certain other types of financial institutions.<ref name="BEA" />

§1.6. time frames for and content of mandatory reports made to the SDSB by commercial banks.

§1.7. exceptions to rules made by the SDSB under this law in times of ongoing or impending economic crisis, and to mandate action plans to avert or prevent these crises.

§2. The SDSB Governor shall:

§2.1. perform general and targeted audits and inspections.

§2.2. grant, suspend or suspend and take over temporarily, or revoke licences (and concurrently petition a court for their liquidation) of commercial banks for non-compliance with rules under this Act or for other reasons provided by law.

§3. The SDSB shall announce general regulatory changes at least 48 hours prior to their effective date. In crisis situations, or in situations when such is customary in the world of central banks, typical or pertinent with regard to their nature, even general regulatory changes may take effect sooner, provided addressees are duly notified of this fact.

§4. All commercial banks and any financial institutions that fall within the purview of the SDSB must comply with its audits, inspections, and other lawful orders and requests.

Article 4: Free Market Operations

§1. The SDSB may conduct operations on the free market in order to fulfill its purpose and goals (Art. 1 of this Act).

Repealed<ref name="sunset">Tauzone Sunsetting Act 2025 passed and signed on 20 December 2025.</ref>

Article 5: Relation with the TauZone Framework

§1. The SDSB is mindful of its role within the TauZone, its relationship to TauZone Central Bank (TZCB) and the central banks of other member states. It shall strive to maintain the closest of relationship with the TZCB.

§2. The SDSB shall participate in the negotiation of relevant TauZone agreements together with other SimDem negotiators, if any.

Article 5: Independence

§1. The SDSB, SDSB Governor or other bodies, nor any SDSB employee may not seek or carry out orders from the President, Secretary of the Treasury or any other official of SimDemocracy or of another TauZone member state in the course of exercising its competence under this Act

§2. The SDSB may advize the government or a government of another TauZone member state or bodies of the TauZone on issues regarding monetary policy and may comment on proposals within its area of competence that are being considered by them.

Article 6: Amendments, Repeals and Transition

§1. The State Bank Act is repealed.

§2. In the Rocky-nomics Pt. 2, Electric Boogaloo Act, §3 of Article 1 is repealed.

§3. The present Bank Manager of the SDSB (if there is one) shall be considered the SDSB Governor under this Act; their term under this Act begins on the day this Acts enters into force and effect.

§4. Any privately owned accounts held by individuals at the SDSB shall be, within 4 days of the entry into force and effect of this Act, closed. Relevant individuals shall be notified of this as soon as possible. If an individual does not lay a claim to the money they have at the SDSB within 3 days of their account being closed at the latest, the money shall fall to the SDSB provided it took reasonable steps to notify said individual of this fact.

§5. The Department of the Treasury shall determine whether the SDSB will operate on the DoT server or on its own.<ref name="streamline">Economic Streamlining Amendment 2026 passed and signed 25 April 2026</ref>

§5.1. If the SDSB does not operate on the DoT server, then they shall create and operate their own server which shall be subject to the laws of SimDemocracy.

§5.2. If the SDSB operates on the DoT server, the SDSB Governor shall be given their own category and permissions necessary to manage it.