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Kwint Sommer
Lothian Quay Industries
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Posted - 2008.03.05 04:19:00 -
[1]
I've just had a revelation as to what Ebank really needs, credit.
I'm in the process of drastically changing over my entire POS network so that it can be taken down and shipped wholesale off 0.0 when that thing with Bunnz finally goes live. I found myself staring at my assets and seeing billions in stuff that needed to be liquidated and billions in stuff needed to replace that being liquidated and yet a mere 2B in my wallet. The problem is that my current options are to either have a week of downtime as I transition (and thus a week's lost profit) or sell off everything to buy orders at 80% of what I might have made.
I was thinking of where I might squeeze an extra two or so billion out of assets as I would only need it for a few days. Obviously a loan came to mind. Ebank has trusted me with such amounts of unsecured capital so why not get it from them? Because getting a loan takes a few days and has administrative costs to administer. Hence, for short-term on-the-spot needs a traditional loan satisfies neither the lendi (too slow) nor the lender (too little profit given the administrative costs). However, pre-approved credit such as with a modern credit card would do both. A lendi applies for credit, the bank sets a limit and a rate and the lendi can borrow funds at any point and they are automatically disbursed as he has been pre-approved.
So why don't the banks in EVE issue credit such as that which is widely available in the real world? Because there is no Federal Reserve or banking network from which they can draw cash in the event of a run on the bank. Thus every time they offer credit to someone they have to consider the full value of that credit to be on loan as far their cash reserves are concerned. This would rapidly deplete their truly available capital while only a small portion of that credit would actually be earning interest.
One solution is to charge obscene interest on the capital borrowed but that will just make it's user base extremely limited. The real solution would be to charge a 3% interest rate on the credit line and interest rates comparable to what a loan would be on the borrowed capital. Then people would only maintain a credit line when they need and the bank would essentially be neutral (no loss or gain) on that capital while it's tied up in this. I for one would have happily taken out a 2 or 3 billion line of credit for this month if I had the option.
The only remaining flaw I see is that all sending of funds still has to be done by a teller. Hopefully CCP will finally allow for the transfer of ISK via API-key or some other automated process.
5% Mining & Manufacturing Implants |
Kwint Sommer
Lothian Quay Industries
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Posted - 2008.03.05 04:43:00 -
[2]
 Originally by: Amarr Citizen 155
I believe this already exists but I'll wait for an ebank representative to comment.
How the heck did I miss that? Is it still in trial mode or something? 
5% Mining & Manufacturing Implants |
Kwint Sommer
Lothian Quay Industries
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Posted - 2008.03.05 07:09:00 -
[3]
Originally by: EBANK Ricdic
Quote:
I for one would have happily taken out a 2 or 3 billion line of credit for this month if I had the option.
You do  Contact me on MSN however as I am unable to log into eve at the moment due to having no DSL access at home.
That's great. I'm going to sleep now but expect to here from me tomorrow. 
5% Mining & Manufacturing Implants |
Kwint Sommer
Lothian Quay Industries
Otaku Invasion
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Posted - 2008.03.16 08:23:00 -
[4]
Just out of curiosity, what do you do to back up EBANK's records? Periodically write the account totals to a write-only hard drive on a separate computer?
Purchasing and Shipping Moon Minerals |
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