| Author | Properties: Banks? |
|---|
I just had this thought after reading through the I&S threads.
What would you guys think of the Empire opening lots for Banks in the Market?
A Bank would be auctioned as Estates were (yes this means only those who can afford them can own them and, ultimately, profit by them).
Essentially, this will either break the economy or make people happy. I'm not sure without further speculation. The basics are as follows though:
A Bank will offer services to other players such as savings with interest, loans and resource exchange.
A player who makes a deposit into a bank could earn, say, .1% of their deposit per day. So a deposit of 1000 gold will warrant 1 gold a day.
A player who wishes to ask for a loan from a bank must submit an application, with a particular cap for each bank, as set by the owner. A loan must be paid back in one month or the player will be penalized by the amount of the loan + interest. A loan will not otherwise generate interest; but the application for a loan should cost ~1000 gold to be paid upon approval.
Resources may be exchanged for gold at a Bank based on prevailing Facility prices. This should make it less of a hassle to sell your resources if you just want quick gold (not to make money!) For example, want to sell some Mercury? You will get 369 - (.01*369) for each one [I'll get to how that works in a minute].
The catch? Well, the owner profits here... potentially ;)
Firstly, the owner has the responsibility to keep the Bank stocked with gold. Each transaction incurs a 1% charge that goes straight to the owner's Bank balance. If someone makes a deposit, they are charged 1%. When they withdraw that, they are charged another 1%. This means that for a deposit to actually make any sort of gold it must be in the bank for longer than 20 days. The owner has NO access to deposited gold. The interest, however, comes out of the owner's Bank balance... which he does have access to.
An owner can loan only what they have available from their Bank balance. They make a set amount on that loan, and they will receive that gold back in at least one month. They also are directly given the transaction fee. They also receive the interest if a player is penalized for neglecting to repay a loan.
With the resource exchange, the gold comes directly from the Bank balance; but the owner receives the resource as well as 1% of the transaction (hence 369-(.1*369) for a single Mercury.
To keep things safe, the owners may set their Max Loan and Max Deposit limit at any time to protect themselves from bankruptcy. Those with deposits or loans made before the change are grandfathered in, so owners must consider this.
In the case of bankruptcy (the owner's balance goes negative), the bank is repossessed and returned to the market. All patrons of that Bank are insured by the Empire to receive their ORIGINAL deposits, sans transaction fee. All loans remain active with the same possible penalties. |
(cont.)
When those loans are returned, they go to the old owner. This makes it the player's responsibility to keep an eye on their Bank and to withdraw before everything goes bad. The accumulated interest that is removed from a player's deposit when a bank goes bankrupt goes back to the Empire. This is to prevent a Bank owner from filing for bankruptcy on a whim.
I can already see a few flaws, but I think it can be tweaked to work out well... benefiting the owners and players alike.
What say ye? Suggestions? |
i was just thinking of creating a bank idea (lol)
good idea however
probably the mod could control the banks and not normal characters
+1 |
| +1 |
@3:
Admins could more easily control banks, yes... but "Admins," not "mods." Big difference between us xD |
one little flaw,
deposits can be retracted whenever the depositor wants to right?
meaning if i deposit 10M and the banker loans this out, 1M to 7 people.
his balance is 3M (isn't 30 percent of deposits the minimal cash a bank needs).
what if tomorrow i want to retract all my gold. i will pay the 1 percents, 100K and leave the banker with a debt of 6.9 M. He has to wait for his loaners to pay back for 1 month meaning he is bankrupt.
Banking only works in big economies, in which you are sure that nobody needs their money in the same time. In hwm, any tournament means the bankruptcy of all the banks.
Even worse, i can make sure that all banks by competitive clans get bankrupt.
so a very big -1 unless you can make it a better system. or loan from the empire only. |
-1 to banks
Bank loans work completely different way in practice than most of people think. This document explaines it very well, including consequences of banking.
http://video.google.com/videoplay?docid=-2550156453790090544#
By the way, I am completely sure this won't get implemented. The whole economical concept of this game is done the way that admins don't allow your wealth to grow fast. Your wealth is controled and is limited by minimal profits of map trading with fixed, unreasonable prices, and determined by the number of your enrolls or the number of fools who buy overpriced items on the market. We won't even get free market and price determination by supply and demand, so banks are completely out of question. |
.1 is 10%
not sure on idea
~1 |
| -1 |
| ~1 |
| +1, I had also posted a suggestion on this earlier but had no good response:) |
| +1 ( although I'm not rich anymore to buy:( ) |
@6:
There is already protection against that in the original plan. Remember, deposits do not become a part of the Bank balance. The owner of a bank has absolutely no access to deposits, so he can't use them for loans. |
@8 -
Ah I made a mistake. It wasn't meant to be .1*369 in the example. It was supposed to be .01*369. And gained interest on deposits would be a multiplier of .001. Those representing 1% and .01 |
| All the avid roulette players will immediately sign up for max loan. The vast majority of those loans will never get paid back... |
| if the deposits dont become part of the balance then it does not do anything for the banker right? so why not just have a fake bank somewhere, that nobody owns. |
Read the whole thing ;p
Every deposit and withdraw incurs a 1% fee that goes to the bank balance. So that is a potential 2%. Considering that there is only a .1% gain per day on a deposit, one would have to leave their deposit there for more than 20 days to actually make money; since thy have to pay the 1% on deposit, and 1% upon withdraw. Therefore the bank will may make or lose money on deposits.
If the roulette players bother to take out so many loans and they don't pay them back, they will automatically be charged the loan by the end of the month plus a penalty for not paying it back within the month. The Banker loses nothing, and... in fact... gains more if someone does not pay back their loan on time.
As with a real bank, the banker would be depending on giving out loans to actually be making a profit. |
| The reason the roulette players won't pay the loan back though is because they will have lost all their money playing roulette. By the time they take loans, they will have probably already sold all their extra arts and elements, so there will be nothing left to confiscate. |
Now, I don't know much about economy, but seems to me that, when you explained that way, bank will loose money from player deposits.
And they will loose again when players who don't have any money, can't return the loan. If they can't return the amount they owe, how will they pay plus penalty? |
The idea is that a player who doesn't pay back a loan gets penalized... in the same fashion as if they had broken a rule. The gold is taken from them even if they don't have it, thus putting them in the red. Negative gold is not unheard of here. Set up a card game for 5k when you have 6k. Spend your gold while you are waiting for the match to start, lose, and then you will have negative gold.
Yes, this sucks for the people who don't pay back loans... but they have to know what they are getting into.
The penalty should be incurred automatically, and a month should be more than enough time for a decently sized loan.
The owner of a Bank only loses money on deposits that are active long enough to make back the deposit and withdraw charge. Of course this could turn out poorly if the Bank doesn't make any money on resource exchange or loans. This is why it is up to the bank owner to set max deposit and loans. |
