Mr Horizontal
Gallente
KIA Corp
KIA Alliance
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Posted - 2009.03.12 12:13:00 -
[2]
I'd dispute that EBANK has had a lot of luck as Shar insinuates. It's been boiled hard in the cauldron and has a very thick skin. Has it made mistakes? Of course. Has it taken risks? Yes. And huge ones, considering 90% of EBANK's NAV was lent out at one point. Has it had a lot of luck? Not really, it's more perseverance and mitigation planning that has 'created' this perception of 'luck'...
One aspect people continuously worry about banks is that if/when they will scam like EIB. Well, what is true is that the banks themselves are far more likely to be the victims. Dynasty has had the Xabier incident. EBANK has registered more defaults against it than any other lending entity! Yet it survives strongly, because it has developed a framework that mitigates against such incidents - and such a string of defaults can only actually be seen as bad luck...
As such I wouldn't say there has been any particular 'luck' - it's just been managed properly.
Now to shift the focus somewhat since this is after all a discussion about Dynasty, is the biggest problem about Dynasty is that it thinks EBANK is its biggest problem. It isn't, it's themselves. They think EBANK is a competitor - it is and it isn't (when has EBANK ever claimed any threat or talked against Dynasty?) yet they are both banks, and they are only competitors because they operate in the same sector.
It may come as a surprise, that while Dynasty is a bank, what EBANK regards as it's closest competitor and threat is not Dynasty at all - it's BSAC. BSAC actually operates on a much closer parallel to EBANK yet the way it borrows its ISK from the public is different. Dynasty may be an interesting commercial bank offering innovative high-yield banking products, but I fear the scalability of the bank is so much shorter in vision than both EBANK and BSAC. Did you know that when Dynasty holds 500b, it will be paying out more in net liability (ie gross interest) than EBANK does on 4 times the amount of NAV?
What EBANK actually wants is a mature banking sector, preferably a tri- or quadrilateral banking sector rather than the bilateral one we have now, as while 2.5T combined NAV controlled by this sector is impressive, it's barely a drop in the Eve economic ocean. At EBANK I'm concerned now with how to look after 10-20T. How can I foresee we manage it? With many banks and massive public entities like BSAC facilitating a hugely liquid secondary market founded on an incredibly solid foundation.
Director | www.eve-bank.net |