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State Bank Act

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This matter has been repealed, voided, or is otherwise out of date

Repealed by the SimDem State Bank Act 2025.

Preamble

Whereas citizens should be able to receive loans and have a safe place to store their tau;

Whereas it is beneficial for the economy as a whole for the government to operate a bank;

Whereas a state owned option will create competition for private alternatives to improve;

Article I: Definitions

§1. “Savings account” shall refer to an account offered by the SDSB designed to help individuals save money over time while earning interest on the balance.

§2. “Personal loan” shall refer to a sum of money lent to an individual to finance personal expenditures.

§3. “Business loan” shall refer to a larger-sum loan issued to a business entity for purposes such as startup costs, expansion, or operational needs, with longer repayment terms and flexible conditions.

§4. “Loan interest rate” shall refer to the percentage of cost imposed by a lender on the borrowed sum for using their funds.

Article II: Establishment of the Bank

§1. The SimDemocracy State Bank (SDSB) is hereby established as a state-owned financial institution.

§2. The SDSB shall operate under the oversight of the Department of the Treasury and coordinate with the SimDemocracy Reserve System (SRS) as needed.

§3. The SDSB shall be distinct from the SRS and serve the general public and government agencies through commercial banking services.

Article III: Core Functions

§1. The SDSB shall offer the following services:

§1.1. Savings accounts with interest determined by the Treasury in consultation with SRS.
§1.2. Personal and business loans – with business loans prioritized by offering higher limits, longer repayment periods, or lower interest rates for business-critical projects.
§1.3. Public sector loans to government agencies or departments in need of funding.
§1.4. Safe storage of tau for all users.
§1.5. The SDSB shall offer business deposit accounts, including business savings accounts, allowing entities to securely store funds, earn interest, and manage their financial operations efficiently.
§1.5. Tailored advisory services, expedited loan processing, or reduced fees for businesses, in partnership with relevant government agencies.

Article IV: Governance and Management

Repealed<ref name="rocky2">Rocky-nomics Act 2025</ref>

§1. The SDSB shall be governed by the Board of Governors of the SRS, as well as three members appointed by the executive and confirmed by the Senate.

<ref name="rocky2" />§1. The SDSB shall be governed by the Secretary of the Treasury, the Treasurer(s) of the Department of the Treasury, the Deputy Secretary of the Treasury, and the Director of the Central Revenue Bureau. This body shall be referred to throughout the rest of this bill as either “the Board” or “the Board of Governors.

§2. Day to day management shall be overseen by a Bank Manager who is to be appointed by the Board of Governors.

§2.1. The Board may use any selection process as it sees fit to appoint a Bank Manager as long as the appointee has a simple majority among the Board of Governors.

§3. The Board shall oversee lending policies and loans to government agencies or departments.

§4. The Bank Manager shall oversee the minute operations of the bank, such as staffing, any transfers to and from the bank, and other responsibilities the Board of Governors gives to them.

§4.1. The Board of Governors, in consultation with the Bank Manager, shall form a Business Advisory Sub-Committee tasked with reviewing and enhancing lending policies to business clients.

§5. No external authority, including the President, Senate, Department of the Treasury, or any other governmental body, shall interfere with or seek to influence the monetary policy decisions, operational independence, or internal governance of the State Bank. Any attempt to do so shall be considered unlawful and subject to legal challenge.

Article V: Interest, Revenue, and Lending

§1. The SDSB shall charge interest on all issued loans.

§1.1. Interest rate policies shall be designed to encourage business expansion by offering preferential terms for business-related loans compared to personal loans.
§1.2. All interest revenue earned from personal loans shall be divided as so:
§1.2.1. Eighty (80) percent to the Government Reserve.
§1.2.2. Twenty (20) percent to the SDSB operation funds.
§1.3. Fourty (40) percent of interest earned from business loans will be earmarked for reinvestment in business development programs.

§2. All revenue not needed for bank operations will be sent to the Government Reserve.

§3. A bi-weekly Lending Transparency Report shall be published detailing:

§3.1. Total loans issued.
§3.2. Interest collected.
§3.3. Total revenue earned
§3.4. Interest rates given and a short description of why.

Article VI: Implementation

§1. The SDSB shall be fully operational within fourteen (14) days of passage, but can become operational sooner if possible.

§2. The Treasury Department shall release a public registration portal within seven (7) days of passage for citizens to create accounts and apply for services.

§2.1. On the public portal there will be an option for business account registration, with additional guidance and resources for business finance solutions.

References

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