Feedback needed: Is the profitability of banks adequate?

[lefaor]

i got the message for bank has no money



i chekc and no money



then i put considerable amount of money in the bank hq



then the ia start to pull all the money



in some cases the message from will show after a few days, normally in a recesion and show many times

Note: this is for a subsidiary

[David]

It appears that the screenshots you posted with your message are not visible due to invalid links. Could you please fix them?

[David]

The profit margins of banks seems realistic, but gameplay wise the profits feels slightly too low. The only way to make a satisfactory ROE is to have high customer deposits relative to your own capital (like a real bank), but during late game you will have excess capital and this will lower your profits to really unpleasant levels. And beyond a certain limit, if you inject too much capital into the bank, there will be insufficient borrowers/customers deposits and there will be excess cash in your bank leading to abysmal profit levels.

It's true that a capital ratio that is unnecessary high will dampen the profit. You could counter this by transferring the excess cash back to your parent corporation for other business opportunities that promise a higher ROE.

[David]

Interest margins seem realistic. It would be great if you could correlate the growth in loan demand / customer deposits with local city GDP as the three are somewhat correlated. Also, when advertising in one of the branches (on internet company), the brand rating slowly declines to zero in the city of the branch which I advertise in while the brand rating increases in other cities...

Also, is there a reason why the main player character is unable to deposit any money into the bank?

I'm pleased to let you know that the dev team has implemented both of the above in the latest version 6.1.02.

Added the feature for making personal deposits. It is accessible from the Person report’s Wealth page.

There is a correlation between the amount of customer deposits that banks will receive and the city’s unemployment rate and real wage rate (affecting deposits from individuals), GDP growth rate (affecting deposits from local companies). These economic indicators can be viewed in the Cities report.

New version details: https://www.capitalism2.com/forum/viewt ... =52&t=6996

[lillud321]

Hi,

Is there any plans to having cites invest there excess cash and borrow money when They Will need it.

Did you guys correct the crash when we try to repay money that we did not borrow ?

And the crash that makes the game crash when i try to Buy a competitors who has a computer OS système ?


Thank you

[David]

Is there any plans to having cites invest there excess cash and borrow money when They Will need it.

Could you please elaborate this - in what way you would expect a city to do new investments?

Did you guys correct the crash when we try to repay money that we did not borrow ?

It is fixed in the latest version 6.1.02.

And the crash that makes the game crash when i try to Buy a competitors who has a computer OS système ?

We will investigate the problem.

Could you please provide us with your save game file and let us know the following?
1) Which version of Capitalism Lab you are using. You can see the version number on the top-right of the main menu.
2) The exact steps for triggering the bug with the save game
3) If your savegame uses a MOD, please let us know the name of the MOD and the MOD's version number.

You may email the save game file to us at info@enlight.com.

If your save game file is too large for attachment, you may check out this post about how to send us large files: https://www.enlight.com/forum/viewtopic.php?f=13&t=2473

[David]

Latest update:
We have identified and subsequently fixed a bug that suppressed bank deposits. After the fix, the amount of bank deposits is restored to its normal level and bank profitability increases as a result.

The bug is fixed in the latest version 6.1.03. Please download it from https://www.capitalism2.com/forum/viewt ... =52&t=6996

[piermario]

I test a game with 6.1.03 and RW11.37, i think in depression economic state, the banks lost too much money (402/592 million) but in expansion cycle the profits are only 19/23 million, see screenshot
Thanks

[beamthegreat]

The profit margins of banks seems realistic, but gameplay wise the profits feels slightly too low. The only way to make a satisfactory ROE is to have high customer deposits relative to your own capital (like a real bank), but during late game you will have excess capital and this will lower your profits to really unpleasant levels. And beyond a certain limit, if you inject too much capital into the bank, there will be insufficient borrowers/customers deposits and there will be excess cash in your bank leading to abysmal profit levels.

It's true that a capital ratio that is unnecessary high will dampen the profit. You could counter this by transferring the excess cash back to your parent corporation for other business opportunities that promise a higher ROE.

IMO, the game should allow a loan-to-deposits ratios above 90%. This will allow the bank to lend out excess cash.

For example, if the bank has $10 bil in net asset and $10 bil in deposits, it would only be allowed to lend out $9bil and will have $11bil in cash (assuming the player uses the maximum 90% loan-to-deposits ratio).

If the game allowed higher values, the player could set it to 180% and the bank would lend out $18bil and retain $2bil in cash which will increase profitability.

[JasonLJJ]

There is a correlation between the amount of customer deposits that banks will receive and the city’s unemployment rate and real wage rate (affecting deposits from individuals), GDP growth rate (affecting deposits from local companies). These economic indicators can be viewed in the Cities report.

Where do we get to see "deposits from local companies" in the cities menu? I just played a game where deposit growth stagnated once wage rate hit 100 and unemployment hit 2%...this puts a lid on the profitability of banks, unfortunately...

David, perhaps we can have a wider scale (3000 instead of 500, for instance) so users can decide on powerful they want the financial system to become?

Also, we could potentially remove /raise the deposit cap per company (up from 30% to 99%) - this would give the option to firms / individuals with surplus cash to put it in the bank to earn income, while the bank will have access to additional funding and help boost profitability of the firm.

Also, for some reason, when i spend money on marketing for internet sites, the bank's brand rating plunges to 0 in the city while it increases to 100 for the other cities...>_<

Also, I noticed that AI has a tendency to raise funds from the bond market rather than get a loan - what is the rationale that drives this behavior? How do they decide how to raise capital?

Jason