(Year 234, Winter) This Winter most Mazaloom citizens chose to move their financial deposits and loans from SimNation's stately bank Sim City First Trust Bank, to the new national bank serving our kingdom, Maz Bank. Now the latter reports that the transfer was successful, but that their full financial capacity was taken.
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| Mr Robert Sutton is CEO at Maz Babk, Inc. |
Banks are basically companies running their profittable business, but when they are stately supported and proven to stay for years to come, they might obtain a touch of institution. SCFTB is such an institution for SimNation, founded nearly a century ago. Maz Bank, on the other hand is brand new, although breaking off from SCFTB's branch in Mazaloom. The total amount of Simoleons going through this sysem is surprisingly big numbers!
Finding ways to register and run this new business was not just straight forward. The deal between SCFTB and Maz Bank was limited by §20 millions. The Mazaloom state intended to take on a 50% ownership, and SCFTB had accepted to own 8% but selling this gradually over the next 4 years. This meant the remaining 42% was available to regular investors. In other words, companies and individuals willing to invest §8,4 millions was needed. So, did they succeed finding owners?
Maz Bank CEO Robert Sutton (59) describes the process as a huge puzzle.
- Not only should we find owners to such big values, but it had to be done according to the contract for the take over. Former owners of SCFTB's Mazaloom branch, were invited to convert their stocks, and with a few adjustments we managed to have it all covered! Maz Bank was secured!
The transfer is now complete, and the new board is made by CEO Robert Sutton (Brindleton), Abhrin W. Ruthfield (Del Sol Valley) and Sim City First Trust Bank. Their ownership wil drop shortly, though, meaning they will be on the board for the initial period, only.
How banking works
In Mazaloom all citizens get their individual bank account at the age of 13. They don't need to use it, but if they do, they can keep track on the transactions online. All accounts with a balance different from §0 will be found there.
A bank account is the easier way to transfer Simoleons between persons or companies. With a click you will access the archives of your previous transfers.
Maz Bank has limited funds to work with, though. The bank's initial capital is only §20,000,000 which is seen as the reserves. The true business comes from offering loans, and in order to have the available money, deposits are needed, too. Loans and deposits ought to balance, though, and a difference should not exceed the reserves. However, when Maz Bank got the deposits and loans transferred, i tured out the total loans were just §2,6 million, while deposits summed up to §106,6 million. The interest income from loans will no way be enough to cover the interest needed to be paid out for the deposits! The new bank got access to more money than it could possibly benefit from with its two products.
- We are looking into some investments, because we need to do our best to balance the result as good as we can. Our business concept includes limits to how much we can invest, and what sort of stocks we can buy. Right now we have a bad business running, but our expertice would be to improve this over time.
The owners will not need to worry, hough.
- No, this is quite normal in a bank's first year. Even if we lose some now, we will surely work hard to build a strong bank over the next few years. With the stately bonds of §30,000,000 we are currently balancing, just not justifying our initial §20,000,000 investment. Thanks to the stately guarantee, stock values can be measured by the original investment for 3 years, before the actual balance will take full effect.
Some details from the transaction
Want some more big numbers? These numbers refer to the basic transition. The numbers were already affected by frequent transfers.
Company loans: §352,427
Company deposits: §91,819,600
Individual loans: §2,282,136
Individual deposits: §14,711,619
Rental deposits: §105,830
Total deposits: §106,637,049
Total loans: §2,634,563
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