Canon of Banks and Finances

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The textbook **Canon of Banks and Finances** is an academic introductory text that describes the norms and practices of the financial industry of Rathnir.

## Text

*Canon of Banks and Finances*

*Written by Dalatra Mosulia*

*During the following hours, this book will serve as a guide to all those who wish to enter the world of economics in Rathnir, to inspire them to use their creativity and learn some essential points for the functioning of a good banking network, as well as a series of advantages and responsibilities that the banker or finance minister should be aware of.*

1. *Create a discord server exclusively for your bank (you will create an exclusive channel for each investor which will contain the total deposited balance (the money they give you) and the accrued interest (the commission they take every time you use their money) )*
2. *Decide an initial interest rate (you can change it over time). In Mosulia Bank, the rate was from 5% to 9% for a while. After the reforms, it rose to 20% (the higher the interest rate, the more attractive it will be for investors, but you will need more time to return the money and therefore you will take more risks for every penny).*
3. *Get investors willing to give you part of their money. Make friends and advertise your bank and its various advantages. The best targets to propose to open an account will be merchants, national leaders, and millionaires bored with their money.*
4. *Put all the money in the same place where it remains safe and will not be spent (a gang, for example). Then write down the total amount of money that represents the money of all accounts and update it each time a new investor or a former investor make a withdrawal.*

*After all this, you can start investing that money for commercial, personal or political purposes (with a cool head. Be aware that this is not your money, and, of course, you must return it as soon as possible + interest) The investors do not have to know what the bank's money is used for. Keep in mind that there must always be at least 20% of the total money invested in the reserves, to avoid the bank being unable to return money in case of a withdrawal in the debt period after the money is invested and it takes time to return it to the investors. The moment word gets out that the bank has no money to pay back its investors, you're out of business.*

***Bank Jargon Terms:***

1. *Investment capital: Represents the total amount of money that individual investors have deposited in the bank (not including interest). This is what is used to make loans and invest.*
2. *Investors: They are the bank's clients who decide to give their money to the banks so that they can manage them and find investment opportunities to obtain interest. They are the ones who are in charge of giving the investment capital to the banks.*
3. *Interest rates: Represents the extra percentage of the borrowed money that must be returned to each account. (If your interest rate is 20% and the money that was loaned during the last day was 40% of the investment capital, then you must return that 40% + 20% of the amount that this represents, which would be 8% of all investment capital, which means that you must deposit to each of the investors + 8% of their investment capital in the interest withheld.)*
4. *Types of Interest Rates: Represents the treatment given to money that represents interest. There are two types of interest: compound and simple interest:*
	1. *Compound Interest: It works by depositing the interest in the same place as the investment capital of the investors so that this money is used for loans as well, and in turn generates more interest. It is for obvious reasons very interesting for investors, but, at least for me, it is very difficult to manage effectively*
	2. *Simple Interest: It works by depositing the interest generated in a place apart from the investment capital so that it is not used for loans or investments and does not generate, in turn, more interest (a gang managed by a partner is very useful for this). It is the interest rate used by Mosulia Bank due to its simplicity and profitability, especially for administrative and accounting areas.*
5. *Debt: After the investors' money is used for some random purpose, the bank contracts a debt that is equivalent to the money that was used + your interest rate. If you entered the total investment capital before starting to spend the money, then you know exactly how much money was lent, and you can calculate the percentage it represents for the total investment capital and in turn know how big the bank's debt is.*
6. *Debt Period: Represents the time that the bank will need to return all the money that was loaned + interest to investors. It can take weeks or days depending on how large the debt is.*
7. *Debtors: Debtors are those people or factions that have needed a loan from the bank and therefore are obliged to help you pay the debt. It is preferable to make the debtors sign a contract with the details of the obligation to avoid complications or payment defaults. (An example about this is how during the preparation of the Great Rathnir War, Mosulia Bank invested $800k in hiring mercenaries and equipment. The coalition lost, but financiers from Uldarash and VAWR (part of the coalition) were obliged to help the bank to pay the debt.*

***Advantages and Disadvantages of Running a Bank:***

*Advantage:*

1. *Grants access to large amounts of quick and easy money for the faction or player who controls the bank to gain tactical advantages. Of course, it must be returned, but the ability to quickly go into huge debt to, for example, buy materials, hiring mercenaries or transportation is a great advantage. You cannot imagine the potential power that this brings.*
2. *It's a good way to meet people and make friends, although this really depends on your charisma. Read my book on seduction to find out more.*
3. *If your investors leave the server or become inactive or are banned, the bank can keep their money. This has happened a couple of times in Mosulia Bank and it is quite good, especially to mitigate debts.*

*Disadvantages:*

1. *Many assholes, socialists and socialist assholes are going to insult you and try to defame you by saying that your bank is a ponzi scheme and a scam, no matter how many happy clients you have or how honest you are. During my time managing the Mosulia Bank, there were many people trying to defame me and make my bank lose face. You must learn to ignore them and just do your job, protecting the investments of your investors.*
2. *You can go into debt irresponsibly and nothing guarantees that you can get back all the borrowed money in an acceptable time, so you will suffer from stress while you live and you may end up selling your nation to pay the debt of the bank like me: D.*
3. *The confidence of your investors can be a big burden.*

***Ethical Responsibilities and Duties of a Banker***

*Bank management is a sacred duty that requires discipline and responsibility.*

1. *Putting investors' wealth before your own wealth: If you make the bank contract a debt, no matter or uncomfortable it may be, you must pay it, even if it is your own money with which you have to pay it.*
2. *Be responsible for all the investment capital that the bank spends: It does not matter who your debtor is, or how much has gone into saying that it will help you pay the debt, or will pay it completely. All the money that leaves or enters the bank it is entirely your responsibility, and you must accept that.*
3. *Do not leave the server for a long time or abandon it: If you want to close the bank and finally be free, it is your responsibility to return all the money to the investors.*
4. *Be firm and straight with loans to third parties: Debtors are not using money that is yours, they are using money from other people who have entrusted it to you. You are not a hero for being flexible with loans, you are not a good person, you are irresponsible and a thief.*
5. *Be impartial when collecting: No matter what faction you are from, everyone should be responsible for their loans, no exceptions.*

***Tips:***

1. *Write down absolutely everything*
2. *Always have a calculator handy*
3. *Be creative and break the established rules. There is a lot of potential in the financial server market*
4. *Keep your biggest and most loyal investors close by, but don't neglect your medium or small investors*
5. *Have a fixed source of money of your own, be it a company, publisher, store, partners or mining operations. It will help for periods of debt.*
6. *Ignore the assholes*
7. *Be responsible.*
8. *Enjoy your work.*

## Legacy

The text is one of very few texts that discuss industry within Rathnir. It is generally admired to be a very good introduction to the profession by contemporaries.