[Implemented] Treasures and Banks

[Most Lee Harmless]

Aye, until we get the outline of future lending plans, its hard to judge what a reasonable framework for interest payments on deposits is. I'd favor real flexibility in both : so the bank can both attract funds and lend them out with some regard to the risks undertaken ; i.e a long term player with good reputation and solid account should pay less ; a new player more, until they establish themselves. Likewise, interest paid should vary according to the banks needs for funds, and the need for long term funds with some mechanism to allow for withdrawals without upsetting cash flow to the loan side.
Otherwise, we may just end up with a secure deposit system, betetr than holes in the ground, but maybe not able to fund player expansion, etc..

[Sir Henry Morgan]

Mates, I think ye be missing the model of banking.

A bank is a place for you to stash gold. It is as safe as the banker makes it. More than likely, it is going to cost you something to make a deposit rather than recieve interest.

This is not just a cushy place where ye get free checking and a debit card. In fact, business accounts (in real life) PAY to bank - so much per transaction for every service provided. Open as business account and you will better understand.

This be the banking system of Pirates Glory. Look at the banking guidelines - there be no mention of setting interest rates on deposits. That is because you have to have a way to make money banking, ie, good loan sources. There's not even enough good loan sources in all Avonmora for two or three banks, let alone 11.

Therefore, depositors should be ready to encounter fees for someone holding your gold. Nations will be charging transaction fees, regardless of what the banker wants to charge.

I suggest ye read the guidelines proposed above - banking is to be another place to store gold - but it is more like a pawn shop, or payday loan service than a full fledged banking system. Or even more like a loan shark.

[Gunder]

I agree with the above, BUT, like with nation laws, why don't we let this be up to the bankers?

The bankers could be able to choose whether or not to offer any interest for depositing funds in the bank. By doing this, banks could specialize within certain areas. Let's say I open a bank, and I wan't to make money loaning money to new players which whom I trust in. Then I end up lacking funds, but my profit on the loans are high enough for me to offer 1-2% interest on the funds deposited? The same the other way around, if somebody want to make money safely storing gold, it should be possible for them to charge a fee for safeguarded the funds.

[Sir Colchian Niveus]

I disagree.. Why should I pay to the bank a fee for putting my money there and not get a fee? I give to the bank my millions and I have to pay also? The ground looks like a better idea.

[Sir Colchian Niveus]

I believe that banks should give a motivation to people so they give their money.. I'm not dumb to give my money to a bank and make him rich. You want my money? Why should be you and not someone else?

[Sir Henry Morgan]

Technically, you can already pay your depositors if you like - you simply send them a payment. It has already been done many times. Say you wish to lend money to one player, but are short funds - contact a few others to make a deposit and send them a payment to do so. Then set up the loan to cover the gold you paid out.
:
In otherwords, you can pay them manually.

[Sir Colchian Niveus]

That's one side of the coin.. Let's say you have a bank.. You want people to deposit millions in you.. I'm the one with the millions.. Why should I prefer to hide my millions in your bank? Why shouldn't I prefer to go to Jim or John or Joel or someone else? You can give loans to other players with my money.. If I don't give you my money you can't loan high amounts of gold. So you can't get high income back.. Give me a reason to store my millions to you. That's what I'm saying. I'm not a banker to loan to others. You are!

[Captain Jack]

Right now, the bank cheese of money protection is more than enough.
Debit interest will be offered and decided by the bankers alone but the only real reason is to make the bankers to attract more deposits (like irl).

Regarding limits, we still believe that the proposed solution is better than changing the general formula. We should make it deposit relevant when it comes to the banker to deposit his money. Perhaps 20M is high enough, we can then make it 10M. This way, the banker does NOT have a safehouse and he must still use the pits. However, we are not rushing this decision as we want to see how things turn out. Buried gold is now down to 9B. Still, only 1Billion sort which is more or less on what has been paid on the hideout buildings already.

We expect this to drop further, to about 6B with most players maintaining a few millions in earth and a few rich guys maintaining a few billions. This way, even without any restrictions, the treasure hunt feature will still work and we are happy with this.

Regarding national/pirates limits, these can come later and most probably only once we have a couple of lvl 10 banks, not now.

[Sir Henry Morgan]

Monkey, you be 100% right - I be playin' a bit of devil's advocate concerning banks. It is going to take some creativity to find depositors for one's bank, and creativity and risk taking to make a bank profitable. Paying interest on deposits is the easiest and also risky. It is going to be quite interesting. One bad loan and things can blow apart rather quickly!

Until we get more tools as bankers, it's just a place to store gold for now and a way your bankers to conduct a little business.

[Captain Jack]

You are getting many new things this week.