The only issue I see with all banks, well 2 issues are as follows.

1: They are built on a foundation of trust, so either people are going to have to trust You personally as the banks owner or you need backed by a stable source like the monarchy.
2: You need starting capital. You can't run a business starting with nothing in stock. Also being able to deposit and withdraw from varying banks makes it even more expensive.
3: (since I thought of a third one) there is no difference between carrying expensive pieces of paper around, and carrying gold around aside from the weight of the gold, and the fact that paper can get ruined and made worthless.

Your bank in particular, how are you going to determine the rarity of items in comparison to gold? You have to know the rarity of the gold, you have to know the rarity of any or every other item compared to this gold, it's a lot more complex than you think. Not even mentioning the fact that you value silver as exactly worth 40x it's weight in gold based on your note exchange rate, and this method doesn't make any sense without knowing the rarity and value of both materials.

I love the idea of implementing a bank, but I think people underestimate the undertaking. I wish you the best, but I don't think this exact method is 100% sound yet.

Labbe strikes again!

How ambitious, I like the concept. However, this would be a massive undertaking of diplomacy, wealth, and following. How will you acquire the support of nobility and acquire the initial wealth to allow this dream to become reality?

For those that dont know about it yet, it might prove interesting to read into the various EVE Online bank frauds to learn from history.

https://arstechnica.com/uncategorized/2006/08/7605/

3 things. There has been games that used player ran banks built on trust, They've been successful for a time. Then the dude will fuck off with other peoples stuff.

Well, that's how it usually goes, I'll still offer a store house for my community to use and pay for slots which they will have their own keys. But seriously, will they really put anything of "true" value in there?

I will also have a pawn shop. So, lending would be done through that method. (and no other method.) Otherwise, the pawnshop will be an auction site and general store. (If people don't actually pawn things) You doing something with interest on top? Eh, that's not very smart people would just be "pawning" for selling. (There has to be something more worth while to hold of value?) Land, and well what else is limited in quantity to a degree that would warrant a Pawn, rather than a place to sell things. So loans with high collateral, will make sense. But be prepared for people to NOT use the service and rather just sell things. 5% interest, doesn't make sense on top of it.

Good luck having your notes, worth anything outside the locality, Sure their gold backed but only as good as anyone that can counterfeit the document you've created. If exceptionally inexperienced in the form of loaning, and using promissory notes, that could lead to inflation, that could be disastrous for your domains economy. Keep in mind even if used locally you could effectively have 1 gold held by 2 or more people at one time. This only works for as long as you can recoup and people aren't constantly withdrawing. Games in general, people actually make returns pretty frequently. Can you have them allow you to hold their money or do they think they're going to be better at it? Well it's an option if you choose to do fractional reserve banking. But still it isn't worth the risk.

Generally speaking, lending only makes sense if the economy actually evolved to require that type of thing. Yes small loans here and there. are going to be vital in some important things. Most people will not partake in that service. Because for the most part we have such an exaggerated value for homes and other things in the real world because of inflated costs. Then need to loan out to be able to afford a thing, which is either 2-4 times your annual income. Or if lucky 1/3 of your income. Most people don't save for that long and rather defer the wait. In games people generally save to gain their next prize.

People are going to be more willing to use a noble's store house than a gentry hell even an aristocrat. They have something important they can loose and they need to be kinda near that domain at all times so they can be held accountable for breaking contract to an extent that the whole government isn't in on the potential fraud that a banking system can do.

A paper note is basically a contract: "N.N. will give 100 gold to anyone returning this contract to him."

If I was to receive 1000 gold from someone for some job and I could not carry that amount, I'd much rather receive e.g. 10 such contracts on paper. I could then use those contracts like gold, but only if everyone trusts that N.N. really has that gold and can fulfill his contracts.

Despite my earlier post, I'm actually in favor on Sackeshi's ideas in this thread, just maybe not the numbers or the credibility.

Loans don't make sense to us people that are looking at expo with EP to burn, but post launch loans will be a great thing for people trying to better their lot in life. As long as the mechanics would allow, nothing stops OP from allowing someone to put up their farm as collateral in order to take out a loan so their buddy can buy a bakery in town for example.

I certainly agree with Kurko though that for large sums of money having paper would be better than gold, but that relies on their being an exchange point at your destination that will accept the paper notes.

I'm super in favor of banks working out in CoE I just want people to approach it with a realistic set of goals for implementation.

Your bank in particular, how are you going to determine the rarity of items in comparison to gold?

At least in the beginning, by using the IRL numbers based on the rarity of such elements on earth, when things get more precise in game those numbers will change.

1: They are built on a foundation of trust, so either people are going to have to trust You personally as the banks owner or you need backed by a stable source like the monarchy.

While not necessarily a backer, every bank teller will be NPC so that people know its programmed to work a specific way.

2: You need starting capital. You can't run a business starting with nothing in stock. Also being able to deposit and withdraw from varying banks makes it even more expensive.

The starting capital will be all the gold and silver my bank "guild" finds and puts into the reserve vaults. As well as what ever other metals are given to us by rich folk preferring to have notes that are easier to carry around and do business with.

3: (since I thought of a third one) there is no difference between carrying expensive pieces of paper around, and carrying gold around aside from the weight of the gold, and the fact that paper can get ruined and made worthless.

Well there is one difference the promissory notes can be split into much smaller value amounts, allowing for better trade. As far as carrying, the metals will put a much bigger target on peoples backs from thieves and deviants then simply notes

Posted By Sackeshi at

Last time such a concept was visited in a slightly different form, it was a resounding no, so instead of trying to make it a universal arbiter of currency, it will simply be 1 very strong currency, that capitalists can use to trade with each other while leaving the commoners to use their kingdoms currency.

How it works
The bank has 3 functions, Trading, Saving, Lending.
Trading- The banks trades gold and silver for complex notes with a seal on it. With a flat rate, of 1G ounce for 40 notes, and 1S ounce 1 note. These notes are equal to these amounts anywhere, where there is a BoE. The rate will never waver regardless of how much silver or gold is in its possession.
The way non monitary items will be traded through the bank is as such, the item will be noted for what elements make up the item, and the percentages, then it will be weighed. A chart of rarity will be used to check. If the item is one ounce but the materials used are 1000 times less rare than gold, It will be worth 1/1000th of an G ounce. This is to keep a stable and steady rate so that anyone doing business can be assured that they will never lose value doing business with the currency.

Saving Anyone can open up a vault with the bank, the bank stores the money a vault for which you will have a special lock just for your vault. You will have access when you tell them your vault code, which is 4 letters and 4 numbers.

Lending A player may take out a lone, and that loan, a player must give up collateral in the case that the loan is not payed back in full with a 5% interest. If its not paid back, the bank keeps the collateral.

The bank will also have a team of minors whose job it is to go find and collect the metals.

Why would I trust a random dude with my money and let him leech of my wealth and the wealth of my people?

I already hate banks in real life, no need to bring those leeches to my game too.

Sakeshi. This topic has been covered multiple times already. I just want you to know so you can also check the previous posts about this topic. Also, as i stated in previous bank posts, i think the idea of a bank doing saving withdrawing and lending via ledgers and contracts is a fun idea, it will be awkward for it to be world wide. For example, forgery will be a big problem, some counties douchies and kingdoms might use different currencies than others, and someone may rob the bank. I for one am planning on using iron crown as currency, because it is cheap and effecient for trading, and can be smelted, so if forgery did occur, it would be a monetary gain because iron is only worth so much and other resources cost more. All hail the iron crown(coin)

One key thing to keep in mind is how much out of game planning can subvert things.

If I provide a loan to someone, it's going to be entirely out of game. You couldn't fool me with an in game contract, I would have never made one.

Many of the worries about banking will be solved by groups planning things out in various discords and forums. Any plan that doesn't take that into effect falls flat immediately.

There's a reason nations in the real world (mostly) have separate currencies. Trying to push for a universal currency, even an optional one, is against each kingdom's best interest.