PlaneShift
Gameplay => General Discussion => Topic started by: Donari Tyndale on November 10, 2006, 08:12:09 pm
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What would you think about a bank? Giving Credits and paying interest....
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What an amazing idea! :o
Some random keywords: search, obvious, wrong subforum.
A good idea would be if a player or a group of players would act like a bank, I hope that's what you meant and you were not referring to the obvious implementation of a bank.
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Yes, that is what I meant.
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I believe Miadon had one going a long time ago, and it seemed to be working quite well :}
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hmmm, it seems like a good idea, but what do you do if a person doesnt repay their debts? if they just login as an alt, get a loan and then pass the money to their main?
I have to say that I work in a Credit Union and its hard enough to get members to repay their loans when you have all their bank details, RW address and legal aspects to back you up.
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Hm yes, I have thought about that. The risk would be greatly reduced if the money is only lent to members of honorable guilds.
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If you're going to start a bank I would recommend making a very good startpost, else you won't attract possible clients :)
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I know, I just checked if it would be a good idea to start, I will think about details and then a post :)
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I have an idea! We can start a bank, then borrow money from the bank and put that money into the banks treasury so that we have capital to lend out. Then we'll make bank notes that can't be forged. Those notes will "represent" money in the treasury. Now get this! People won't cash in on their bank notes all at once, so we can actually lend out more money than we have. Let's call it "fractional-reserve banking". We could lend out ten times as much money as we actually have in the treasury! And then charge interest on it.
And then we could close all the loans all at once and tell people that they have to pay up or else we gain control of their assetts. Since everyone will be trying to get their hands on money to pay us, money will become rare, and many people won't have enough money to pay their debts. It's brilliant!
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One thing I can suggest is have a chat with Miadon. He as Karyuu has pointed out, had a bank at one time. He will be able to give you the answers perhaps to problems that came about, or help you troubleshoot certain issues. Can't hurt to ask. Good luck.
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Or.. Just a thought... a public container that just lets you put money in and take it out. I hear tell they are called safes and such. Heck, you could even practice lockpicking. Or even more feasable in the immediate future: I bet with a little bit of code you could probably make an NPC that would do it for you! Maybe even let the player "purchase" a token from an NPC that just conveniently happens to be worth the exact amount of money (or a slight percentage less) than they gave the NPC. They give him/her/it 200 tria and they receive a token that is worth 198 tria when it is sold. Right now a lot of people are using glyphs for this purpose, due to the fact that they weigh nothing and the return on them is decent. Lots of different ways to do this, and I trust hard code a lot more than I trust some person who might or might not login for months at a time. Of course making posts like this is just asking for a "still in development, RP everything, etc response. Sorry, but until Yliakum gets their own version of the FDIC I am kind of nervous about giving other players my cash. Not to mention the risk of another wipe like the one that occurred after the platinum fiasco wiping out all the bankers excess funds.
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Hm yes, I have thought about that. The risk would be greatly reduced if the money is only lent to members of honorable guilds.
Theyre the least likely to need a bank.
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Btw, the whole point of a bank is that you store your money in it, the bank gives you interest on it and uses the money you gave to the bank to make huge amounts of money. Banks don't make very much on loans in comparison (not in the short term anyway). So yeah... it's not really a bank if all it does is loan out money, just a moneylender.
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That's a good point. I thought of that, but couldn't figure out how to state it concisely.
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Btw, the whole point of a bank is that you store your money in it, the bank gives you interest on it and uses the money you gave to the bank to make huge amounts of money. Banks don't make very much on loans in comparison (not in the short term anyway). So yeah... it's not really a bank if all it does is loan out money, just a moneylender.
Morgages are loans. Ditto on credit card ballances. I think that banks make a lot of money from things like that, so I'm not so sure that loaning out money isn't a primary source of income for them.
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Well they're not making any money until people pay back what they loaned and start paying the interest. In the case of mortgages... banks have to wait decades. Not a good source of income (where the money isn't going right back out again in the form of loans), especially when they're loaning that money back out again to other people. It pays off in the long term definitely, and probably is the majority of the turnover, but provides hardly any profit in the short term. The profit comes when the person taking out the loan dies (hence the word mortgage). Using the billions they already have to make money from capital and any other ventures will surely make a lot more than any other method in a given time. Credit is just a long term slow flow of (risk free for the bank usually) guaranteed income.
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OR
We could just wait the what i hope is short time until it gets implemented.
/me looks to DEVS. "SHORT TIME PLZ PLZ PLZ"
:P
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/me looks at Gondric for a long time...
You're new here, aren't you? :P
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where were you considering getting you start up capital, you would either require alot of money yourself or you woul/d need players to save with you, to promote savers you need to give them a good rturn on their investment, good enough that they want to save but not so good that you cant pay them. To make it work you really need to have at least one third more in savings than you have loaned out, that is to cover any withdrawals from their savings players wish to make.
Phinehas is right that members of honourable guilds are the least like to require loans
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Phinehas is right that members of honourable guilds are the least like to require loans
I don't think this is true. The Vespers of Laanx for instance is one of the most honourable good-alligned guilds in the game, and they're in constant need of money. Not loans though, so I guess that argument falls apart.
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well it would make sense to use the money people give to you to save and put that to buying gold off the miners and selling it to an NPC for a profit. If you are the shrewd enough business man you could make alot of money.
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Naturally, the bank will give interest to people saving their money on their accounts. I have also thought about deposit boxes, where people could store their items for a small fee, or maybe free [No more using the shelves in the library :)]. Furthermore, transactions could be made through the bank, it is loads easier than meeting all the time. Pets carrying messages can give the transaction orders to the bank [/tell], that is easier than meeting to trade. Starting money is no problem, I have loads of it. The only thing I am currently thinking about is how to reduce the risk of someone not paying a credit back and the interest rates. How does 4% interest per day on loans sound? That is about digging once per day per 100k [A RL day]. And about 1% interest per day on money stored at the bank at the beginning, if all works out more.
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It sounds like usury especially if it is compounded interest.
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It sounds like usury especially if it is compounded interest.
1) What interest rate are you comfortable with for a secured loan? [4% is actually quite low for a bank loan IRL, as the current Wall Street prime rate is 8.25%.]
2) Keep in mind that compound interest goes both ways, as the interest paid on accounts would also be of the compound variety. One thing though: How do we set compounding intervals without a functional calendar?
P.S. A valuable weapon or glyph could be used as collateral for a loan until real estate is implemented...
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1) These, I assume would be unsecured loans. 4% APR is quite low, but this is 4% per day, a considerable jump.
2) The interest paid on savings would not necessarily be compound, it would make more money for the banker if it was not and that is why lots of RW banks use this system, loan out money on a compound basis but average the amount of interest paid to savers based on the average bank balance over whatever term the interest is calculated.
The collateral idea does sound interesting, like a pawn broker, if they dont pay up in the alloted time period you sell the weapon and recoup your losses
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I believe Miadon had one going a long time ago, and it seemed to be working quite well :}
I gave that up ages ago, mainly as I had no customers, I run a gambling house now, which is very profitable.
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I don't think there's a way to impliment a bank in game. I could take out a large loan with an alt then transfer the money to another character secretively.
What could work though is a pawn shop because then you're dealing with collateral.
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I wonder, can i make a post to adverztize the bank in the guild section? Or do I need to create a guild first?
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Feel free to make a thread before the actual creation :}