Office of the Central Bank
The Office of the Central Bank (OCB) is a government office operating under the Illuminatia Department of Monetary Policy (DMP). The OCB engages in transactions with top-tier banks and lenders in Illuminatia and manages transactions between these institutions in such a way as to promote the stability of the value of the Illuminatian currency, the Monetary Unit.
The OCB is also the governmental entity responsible for establishing Illuminatia's negative interest rate, monitoring pecuniary policy in conjunction with other monetary regulation in a way such that economic activity is accelerated in a manageable manner when taking into consideration the high population increase on the continent and the consequences of rapid population growth on the economy.
The Office of the Central Bank supplements the DMP's mission to encourage the responsible management of wealth collectively by instituting policies discouraging the consolidation of monetary wealth. The OCB works closely with the Monetary Network—Illuminatia's solitary vehicle for transferring money.
Negative interest rate
- See article: Negative interest rate
The Office of the Central Bank is the governmental entity that has set Illuminatia's negative interest rate, a policy that encourages the more even distribution of wealth.
Although currency is important in everyday personal transactions and for the transference of wealth, individuals and commercial entities—as a result of the application of the negative interest rate by the OCB most notably at the top stratum of banks among the largest of deposits—are systemically encouraged to reinvest monetary wealth into less-liquid non-currency assets that are more beneficial to society, such as businesses and infrastructure.
Under the OCB's system, large wealth in monetary form that sits idle in the long term loses value as it is assessed interest, while wealth that is in a fluid state of redistribution is not affected by the negative interest rate.
Due to the application of negative interest rate monetary policy by the OCB toward only top-tier banks which directly interact with the Central Bank, the negative interest rate effectively acts progressively in relation to the magnitude of monetary assets. As a result, small amounts of money of the sort that a personal account would keep as operational liquid cash on hand do not see the effects of the negative interest rate, as their lower-tier banks do not pass on this interest to them; meanwhile increasingly large sums of institutional wealth may sit idle for longer periods and will be held closer to the top tier of banks and therefore be subject to a more negative interest rate applied by these banks.