Banking DLC Exploit

[megapolis]

Hi David,

Banking DLC is not released yet but I already know how I will exploit it.
1. Setting up a large profitable subsidiary (or buying a rival)
2. Borrowing as much money as possible from rival banks
3. Moving all assets to parent company as well as all the cash (through technology trading for example)
4. ???
5. Profit!

As a result all rival banks who loan money to my subsidiary will have a large breach in their budgets.

[therealevan]

Sounds horrible.

[williammgary1]

Hi David,

Banking DLC is not released yet but I already know how I will exploit it.
1. Setting up a large profitable subsidiary (or buying a rival)
2. Borrowing as much money as possible from rival banks
3. Moving all assets to parent company as well as all the cash (through technology trading for example)
4. ???
5. Profit!

As a result all rival banks who loan money to my subsidiary will have a large breach in their budgets.

Good point. Debt to asset ratio could tie into credit rating and at a certain credit rating/ratio all AI banks (player could set their policy) will refuse to issue loans.

Maybe a combination of Revenue, Cash flow (net profit), Debt, Asset could determine the credit rating and ability of borrower to repay.

[megapolis]

Credit rating or current system - does not matter. You're talking about conditions to provide loan.

But you have a point. I think that credit organizations should have an ability to block some decisions. Like a decision to sell profitable assets. Or, as an option, revenues from sold assets should cover excessive loan first and only then go to company pocket.

[williammgary1]

Credit rating or current system - does not matter. You're talking about conditions to provide loan.

But you have a point. I think that credit organizations should have an ability to block some decisions. Like a decision to sell profitable assets. Or, as an option, revenues from sold assets should cover excessive loan first and only then go to company pocket.

This could get complicated Maybe terms. If there's a significant drop in revenue & cash flow then the bank can we recall loan or require a payment of a % of the principle.

Sometimes restructuring can cause a temporarily drop in cash flow but revenue dropping by 30-40% and cash flow dropping is a sign of trouble.

[williammgary1]

Also Asset value a % (user player AI can set this policy) of decrease could trigger early repayment of loan or a % of principle must be paid back

Asset drops 10% after loan the player banks policy could be that 15% of principle of loan is immediately due

[chengtsai]

All vaild suggestions.