Comments on: Business Plan for the first common good bank™ http://commongoodbank.com democratic economics for a sustainable world Tue, 06 Jul 2010 16:35:13 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: wspademan http://commongoodbank.com/bplan/comment-page-1#comment-1562 wspademan Thu, 01 Jan 1970 00:00:00 +0000 http://commongoodbank.com/?page_id=49#comment-1562 Gerald, thank you. Costs will for the most part be similar to other banks, except that top salaries will be lower than average, bottom salaries will be higher than average, and we won't be spending a lot on fancy offices. See the <a href="http://commongoodbank.com/bplan" rel="nofollow">business plan</a> for details. Return on investment, on resale, is limited to the (true) rate of inflation -- no dividends. See the <a href="http://commongoodbank.com/invest/soundinvestment" rel="nofollow">sound investment</a> page for details. Since common good banks are a community-based system, the bank itself does not grow -- it just has more and more participating communities. If a community division gets too large for effective discussions, then it will be split into two or more divisions. And no, growth is not necessary for the bank's success. Expenses and revenue are both projected very conservatively. We hope that the bank can do better, but we don't want to promise more than we can be sure of delivering. As a local depositor/investor, you get to decide (along with your neighbors) what the nature of the loans will be in your community. It's up to you. Gerald, thank you.

Costs will for the most part be similar to other banks, except that top salaries will be lower than average, bottom salaries will be higher than average, and we won’t be spending a lot on fancy offices. See the business plan for details.

Return on investment, on resale, is limited to the (true) rate of inflation — no dividends. See the sound investment page for details.

Since common good banks are a community-based system, the bank itself does not grow — it just has more and more participating communities. If a community division gets too large for effective discussions, then it will be split into two or more divisions. And no, growth is not necessary for the bank’s success.

Expenses and revenue are both projected very conservatively. We hope that the bank can do better, but we don’t want to promise more than we can be sure of delivering.

As a local depositor/investor, you get to decide (along with your neighbors) what the nature of the loans will be in your community. It’s up to you.

]]> By: gerald berke http://commongoodbank.com/bplan/comment-page-1#comment-1485 gerald berke Thu, 01 Jan 1970 00:00:00 +0000 http://commongoodbank.com/?page_id=49#comment-1485 I see and support the ideas of the bank. How is the bank different from any other bank in terms of costs, salaries, return on investment... and what keeps the bank from getting too large. Does it have to keep growing to stay viable? Also not clear why exepenses track so closely to gross revenue... I would think economies of scale would be damatic in a community based system... As a local depositor, or investor, i would want to know the nature of the loans being made in my community. Good luck! I see and support the ideas of the bank.
How is the bank different from any other bank in terms of costs, salaries, return on investment… and what keeps the bank from getting too large. Does it have to keep growing to stay viable?
Also not clear why exepenses track so closely to gross revenue… I would think economies of scale would be damatic in a community based system…
As a local depositor, or investor, i would want to know the nature of the loans being made in my community.
Good luck!

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