Return/Redevelopment of the Banking System

Guest · Post by **Guest** » 20.04.2009, 11:51

Ok I know it

Guest · Post by **Guest** » 20.04.2009, 11:52

Ideas List:
The ideas collected so far and their creators
1) Placing individual buildings up for collateral for loans so you don

Guest · Post by **Guest** » 20.04.2009, 12:16

I remeber the banking system, and when I was small I used it to help me grow, I think that the system can and should be put on again, if the people don't pay their credits or go to an over credit situation and start loosing assets too bad for them, cause in real life it's what's happen, if you don't pay, you loose your assets.

Guest · Post by **Guest** » 20.04.2009, 12:21

Hmmm, oh hiya

Yeah just thinking this through.

The only way you could bring the bank back would be really if maybe the NPC started selling the buildings off on the market for cheap prices.

Say I took out a 200mil loan and then my internet crashed right after I spent it. So cash wise on my account I have maybe 20million caps. No way is that going to pay back my loan.

So the system could then put some of my buildings up on the market. Now the problem here is that they have to be low priced so people will buy them but not so low priced that loads of people buy them to re-sell etc otherwise it would cause a property crash and we don

Guest · Post by **Guest** » 20.04.2009, 12:32

I agree the problem will be with pricing assets. If I may offer an idea: What if we based all prices of AI selling (so what u can sell the buildings for instaniously) and alowed people to have a max of say 50% of their total assets loaned at one time and if they defaulted then they would have their buildings sold out from under them but only up untill that lose 50% so they wont be totaly finnished. It would also give special buildings holders an egde because they add to assets.

Guest · Post by **Guest** » 20.04.2009, 12:41

Nah originally it was 10% i believe that you could borrow but it still took all your buildings :\

Guest · Post by **Guest** » 20.04.2009, 12:55

Yes that was the problem, there was a flaw in the system, so some big players lost completetely everything, not just what they owed or a couple of buildings.
Maybe the bank could hostage a couple of buildings so they cannot be used anymore until the loan is payed off, with a limit of 20 buildings and in the meantime they can just take 50 % of all the cash you earn, or even 75%, with a penalty of 10% over the total loan.
Just like governments do when you owe tax..

Only they take everything.

Guest · Post by **Guest** » 20.04.2009, 12:58

Aww poor sally

Dont earn as much money- then the government cant take it

More to the point-holding buildings hostage is ok- but which ones? How many? Biggest? Smallest? what type?

That's going to be the major problem, some dude posts:

Well they took hostage my 2working production buildings and my RC and my sales building... All my others are expanding for the next 3000hours... 4months :S Not good.

Guest · Post by **Guest** » 20.04.2009, 13:50

I think we should get the banking system back, it would really help.

Especially if I need the cash to buy coins.

Guest · Post by **Guest** » 20.04.2009, 15:11

felixbluindustries wrote:Aww poor sally Dont earn as much money- then the government cant take it

More to the point-holding buildings hostage is ok- but which ones? How many? Biggest? Smallest? what type?

That's going to be the major problem, some dude posts:

Well they took hostage my 2working production buildings and my RC and my sales building... All my others are expanding for the next 3000hours... 4months :S Not good.

lol, it wasn't me me thank god with the tax thing, we have a very good accountant

.
But it did happen to someone close to me and it wasn't pretty..they were ruthless!!:shock:

About the bank, what if you can choose the buildings yourself?
I don't now how to call it in English but when you take a big loan (in real life) for example, you have to have some property that the bank can take and sell if you don't pay off your loan, like a caravan or a house or boat, something like that.
So when you take the loan you say which buildings are the insurance for the bank so you know precisely what you are getting yourself into and there are no surprises.
You would be allowed to choose a building which is worth more then the loan, (which ofcourse would be stupid) but not less then the loan.

Guest · Post by **Guest** » 20.04.2009, 17:08

sally wrote: About the bank, what if you can choose the buildings yourself?
I don't now how to call it in English but when you take a big loan (in real life) for example, you have to have some property that the bank can take and sell if you don't pay off your loan, like a caravan or a house or boat, something like that.
So when you take the loan you say which buildings are the insurance for the bank so you know precisely what you are getting yourself into and there are no surprises.
You would be allowed to choose a building which is worth more then the loan, (which ofcourse would be stupid) but not less then the loan.

Yeah, that would be a good idea!

Guest · Post by **Guest** » 20.04.2009, 17:55

sally wrote:About the bank, what if you can choose the buildings yourself?
I don't now how to call it in English but when you take a big loan (in real life) for example, you have to have some property that the bank can take and sell if you don't pay off your loan, like a caravan or a house or boat, something like that.

It is called collateral. I do like the idea that you can pick your collateral as long as it equals, or at least is close to, your loan amount.

Guest · Post by **Guest** » 20.04.2009, 17:59

I also do like the idea of collateral, but it should be bigger than the loan, usually the banks only give a loan of 90% of the guarantee.

Guest · Post by **Guest** » 20.04.2009, 18:22

Right , that's the word: collateral.
So as long as you pay off your loan as you are supposed to you can still use this building, but when you fail to pay it back in time, the bank takes the collateral "hostage" and you will get a certain amount of time (say 3 days) to pay the loan off yourself, when that time has passed and you still have not payed, the bank will start to take a certain percentage (80% or even 90%) of your income everyday until the loan (and the penalty) is repayed.
(But..the longer it takes, the higher the penalty, so it won't do you no good to "hide" your cash in the warehouse

)

Then you get your building back and you can get back to business as usual.
There could also be an option to just let the bank take the building, so then your loan is also repayed.

And it would indeed be a good idea to make the loan 90% of the collateral you are willing to give.

Think I will leave calculations up to our mathematics in this forum though.
It is very interesting, but unfortunately I have too little knowledge of math compared to you guys.

But it should not be made too complicated, just keep it simple so there is no or very little room for error.

Guest · Post by **Guest** » 21.04.2009, 00:18

Yes it would be nice if the banking system came back.
I support Sally's idea of the borrower designating a building or 2 as collateral,the loan can be a % of the Building(s) value...say 75%.
I also feel that the term of the loan should be variable but no more than 2 weeks.. if you want to borrow for only 3 days fine.The Interest should be fixed on a daily basis so the longer the loan the more you pay.
BUT if you default the Bank should only be able to take your Colateral.
If you pledge a 40 mil building and have a loan for 30mil with a daily interest rate of 2% thats 600,000 per day of interest times 14 days that would be 8400000 in interest...total payable would be 3840000...thats less than the building is worth...if you dont pay you lose the building.
If you have a Loan for less than 14 days the difference would be greater and more incentive to actually pay the loan.
As for notifications ..just like in life you know the terms of your Loan but because we are dealing with some young people here the bank should send a payment reminder 24 hours before the loan is due and then again 12 hours before the Loan is due...
After that too bad if you miss the payment you lose the building BUT maybe one last chance to buy it back from the Bank if you act within 12 hours of Loan closure you can buy it back with a % penalty..say another 2%???
pk