Capitalism 2 and Capitalism Lab Forum

Hello. We observed that "bank deposit interest rate" in caplab is equal difference series (beta6.3.02), and sequence difference is 0.5%. In reality, the saving account is significantly lower than the interest rate (generally more than four times the difference). Sequence difference should be an increasing variable (not a constant).

In addition, we suggest whether the overall level of "bank deposit rate" can be set lower. "Bank deposit interest rate" and "bank loan interest rate" are linkage mechanisms. Reduce the level of "deposit interest rate" and "loan interest rate" along with it, which is conducive to reducing the financing cost (booming economy) of caplab company, and also can effectively reduce the bank's profit level (closer to the reality). Otherwise, the bank will be very profitable in the later period, reducing the difficulty of the game. We refer to the "deposit rate of commercial banks" in some countries and give suggestions (see the picture).

In addition, we suggest whether the overall level of "bank deposit rate" can be set lower. "Bank deposit interest rate" and "bank loan interest rate" are linkage mechanisms. Reduce the level of "deposit interest rate" and "loan interest rate" along with it, which is conducive to reducing the financing cost (booming economy) of caplab company, and also can effectively reduce the bank's profit level (closer to the reality). Otherwise, the bank will be very profitable in the later period, reducing the difficulty of the game. We refer to the "deposit rate of commercial banks" in some countries and give suggestions (see the picture).

You could set the "Base Loan Interest Rate" to Very Low or Low to lower the "Bank deposit interest rate" and the "bank loan interest rate". Please see the attached screenshot.

wjhj06 wrote: Tue Feb 25, 2020 11:24 pm Hello. We observed that "bank deposit interest rate" in caplab is equal difference series (beta6.3.02), and sequence difference is 0.5%. In reality, the saving account is significantly lower than the interest rate (generally more than four times the difference).

I asked the dev team today and they told me the following:

The sequence difference between 1 year and saving account in your table is 0.2 + 0.95 = 1.15. In the game, it is 0.5 + 0.5 = 1.0. The difference is very small.

They prefer using 0.5 so that most players can digest the data more easily.

Sequence difference should be an increasing variable (not a constant).

Since the interest rate in the game is already quite high. If it uses 0.6, 0.65, and 0.7 as suggested in your table, it will be even higher and banks will be even more profitable. (Currently in the game it is 0.5, 0.5 and 0.5)

wjhj06 wrote: Tue Feb 25, 2020 11:24 pm Otherwise, the bank will be very profitable in the later period, reducing the difficulty of the game. We refer to the "deposit rate of commercial banks" in some countries and give suggestions (see the picture).

You can set the Overall Difficulty Level to 4 or 5 to decrease the profitability of banks.

Thank you very much for David's patient explanation。