The 99% Bank has to have a committed membership and/or depositors.
The terms to the savings accounts are different than what is found on the market today.
Imagine a bank where THREE PERCENT interest is amortized annually. Not daily, not monthly but annually.
Then imagine having 2000 depositors. More? Sure. But, let's start with 2000.
Those depositors have savings accounts whereby they deposit $1 per week. Besides their checking accounts IF there are checking accounts offered.
$1 per week deposit is a cash inflow of $2000 per week. Anyone can take if from there. $5 per week. $10 per week. $20 per week.
Now, where does the THREE PERCENT interest come from? Growing the local economy that's where. A small portion of those very liquid assets, let's say 10% ONLY is invested with repayments of loans monthly.
Ever hear of Microloans? They work. They work exceptionally well and there is not a bank in the USA that specializes in them.
The monthly repayment incurs interest of 0.3%. In ten months the monies loaned will have earned THREE PERCENT interest. If the monthly repayment is 0.4%, the monies will have not only made three percent interest, but, four percent and that is called OPERATING EXPENSES. If the loan is repaid at 0.6 percent interest monthly that is not only operating expenses but the payment of THREE PERCENT interest to the annual amortized payments to all the depositors.
In the meantime, the bank has 90% liquid equity and growing its own.
What is happening with the loans? They are regrowing the economy, putting people into small businesses, probably working out of their homes.
So, therefore, what is happening to the deposits to the 99% Bank? They are taking on different definitions, now there are business accounts. There is growing wealth in the community and the bank becomes more secure.
The key to the 99% Banks is growth and financial fiscal security as demonstrated by sound investment.
What happens to those that have taken loans and are repaying them with SIMPLE INTEREST? They are proving their ability to be responsible with money and they are developing a new base of 'credentialing' for credit.
This is not difficult. It can begin with a 'Union' of interested citizens. It doesn't have to be called a bank. It can be called any darn thing anyone wants to call it.
The terms to the savings accounts are different than what is found on the market today.
Imagine a bank where THREE PERCENT interest is amortized annually. Not daily, not monthly but annually.
Then imagine having 2000 depositors. More? Sure. But, let's start with 2000.
Those depositors have savings accounts whereby they deposit $1 per week. Besides their checking accounts IF there are checking accounts offered.
$1 per week deposit is a cash inflow of $2000 per week. Anyone can take if from there. $5 per week. $10 per week. $20 per week.
Now, where does the THREE PERCENT interest come from? Growing the local economy that's where. A small portion of those very liquid assets, let's say 10% ONLY is invested with repayments of loans monthly.
Ever hear of Microloans? They work. They work exceptionally well and there is not a bank in the USA that specializes in them.
The monthly repayment incurs interest of 0.3%. In ten months the monies loaned will have earned THREE PERCENT interest. If the monthly repayment is 0.4%, the monies will have not only made three percent interest, but, four percent and that is called OPERATING EXPENSES. If the loan is repaid at 0.6 percent interest monthly that is not only operating expenses but the payment of THREE PERCENT interest to the annual amortized payments to all the depositors.
In the meantime, the bank has 90% liquid equity and growing its own.
What is happening with the loans? They are regrowing the economy, putting people into small businesses, probably working out of their homes.
So, therefore, what is happening to the deposits to the 99% Bank? They are taking on different definitions, now there are business accounts. There is growing wealth in the community and the bank becomes more secure.
The key to the 99% Banks is growth and financial fiscal security as demonstrated by sound investment.
What happens to those that have taken loans and are repaying them with SIMPLE INTEREST? They are proving their ability to be responsible with money and they are developing a new base of 'credentialing' for credit.
This is not difficult. It can begin with a 'Union' of interested citizens. It doesn't have to be called a bank. It can be called any darn thing anyone wants to call it.
