Favoring Own Financial firms
Posted: Mon Jul 19, 2021 9:54 pm
Hey guys,
So I am sure this has already been thought about but is it possible to have subsidiary firms favor using your own banks for financing over other financing options? Or can you test adding some additional functionality in this way. Something I have noticed is that even if I 100% own a bank subsidiary or directly operate a bank, other subsidiary companies do not necessarily use the bank's financing even if they need cash, and even if they have credit available to them. Also, even if the bank has not hit a limit on institutional deposits, they won't deposit cash. At least if they get a loan from a bank I own it would be better than getting a bond or a competitor's bank as a preference.
So I am sure this has already been thought about but is it possible to have subsidiary firms favor using your own banks for financing over other financing options? Or can you test adding some additional functionality in this way. Something I have noticed is that even if I 100% own a bank subsidiary or directly operate a bank, other subsidiary companies do not necessarily use the bank's financing even if they need cash, and even if they have credit available to them. Also, even if the bank has not hit a limit on institutional deposits, they won't deposit cash. At least if they get a loan from a bank I own it would be better than getting a bond or a competitor's bank as a preference.