Suggestion : new game run bank ratio

[JohanPB]

Although the change of formula is effective, the capital shortfall window pop ups too often, because the bank loans grows too fast

In order for the bank to be played in more automated way, there should be more settings :

• A minimal bank capital ratio , adjustable during the game run, that must be higher or equal to the regulation one. If for any reason, the bank dips under this ratio, it stops loanings until this ratio is fixed.
  Advantage : it gives an opportunity to have some money available to give back to the parent company.
• A minimal loan-to asset ratio , adjustable during the game run, that must be lower or equal than the maximum loan-to-asset. When the loan-to-asset ratio dips under this new setting, it means the bank has too much deposit cash on hand , so it doesn't accept new deposits until this ratio is fixed too.

How does that sound?

[buells]

Johan, I think banks need a source of non-deposit debt financing. I may be running a slightly older version (though I just downloaded it a week ago), but my issue is that I wind up having an ever increasing amount of equity retained by the bank that provides most of the funding. The capital compounds very quickly, so my market cap, etc. grows very fast (too fast at 200% deposits, but maybe I just need to use more punitive settings). However, I cannot pull any cash out of the bank. In real life, banks are not economically profitable if they retain a huge amount of earnings. They need to use deposits or at least wholesale funding, repo, and the like to keep their cost of funds attractive. Also, my loans to assets are stuck above where I set the maximum (100% instead of 93%). The wholesale funding can be automatic based on the capital settings you use. The funding would carry a cost of capital meaningfully higher than deposits, but still possible to generate positive net interest margin. If you had no deposits and all wholesale funding, you would have a low bank ROE.

There should be more bank metrics: net credit yield, defined as (Net interest - Loan Losses)/Loans and ROE, defined as net income / bank equity. There should also be something that shows the trailing interest income - loan losses for each type of loan (i.e., AAA, B, CCC, etc.)