King-Chapter 1125 - 171: Preparing the Bank_2

The cost of a single Magic Crystal Card alone amounts to several dozen Gold Coins. If the demand is extremely large, perhaps the production costs could be somewhat compressed.

In an era of pure handcrafting, only Magicians were able to produce these items, and no matter how much costs were compressed, the prices could never be low.

To acquire customers at such steep prices, how many transactions need to be made to break even?

Not using Magic Crystal Cards and rather using more primitive accounting methods means that anti-counterfeiting will be the most challenging issue.

In order to imitate bonds using magical anti-counterfeiting techniques, all clerks must be replaced with Magicians. How many Magicians would be needed?

Even if money were no object to solve the problem of acquiring customers, that wouldn’t necessarily mean customers would come.

Hudson’s credibility was good, but banking was still a novelty. Unless high interest rates were offered to attract depositors, it was difficult to gather sufficient deposits.

Conversely, the situation with loans was just the opposite. Many Nobles were eagerly waiting; as soon as the news was released, customers would flood in, and the bank would be emptied within a few days.

"Duke, should we also put aside the development bank project you planned?"

Rudolf asked with some hesitation.

Hudson had prepared for this project for a long time. Since the Snow Moon Territory was designated, preparations had begun.

Staff training had started two months ago, and even store locations had been planned specifically.

"The development bank will open as normal, but circumstances have changed and our plans must be adjusted.

We originally planned to cover all Nobles in the Near East and Northern Border, but now we are the only investors, so the scope must be reduced.

The first round of loans will be targeted only at our clan’s branch members and closely related Nobles.

The loan amounts must also be limited, assessed comprehensively based on the value of the collateral and the safety of the funds. frёeweɓηovel_coɱ

The higher the risk, the lower the valuation of the collateral, and the higher the interest rate.

However, considering our initial customers are mostly from our own, we can temporarily set the loan rate at 15%, which may fluctuate later based on the actual situation.

The total amount of the first batch of loans will tentatively be within One Million Gold Coins. Considering the difficulty in attracting deposits, we won’t set a target for absorbing funds in the short term.

Initially, we’ll open branches in Mountain Domain, Snow Moon Territory, and the Capital. Money deposited in any branch can be withdrawn from the other branches without management fees.

Deposits exceeding Two Thousand Gold Coins will be gifted a Magic Crystal Card. Those depositing less than this amount will bear the card fee themselves."

Hudson stated unflinchingly.

There would be no interest. Not charging management fees was already quite magnanimous.

The newly established bank bore high operational costs and wasn’t at the stage to attract deposits with high interest rates.

Having no competitors, anyone needing currency exchange would choose the Near East Development Bank as their first choice.

Of course, the most important issue was that credibility had not yet been established, and the Kingdom’s Nobles were too poor to attract significant funds, even with interest.

The real allure of the Near East Development Bank was the ability to freely withdraw funds at any branch, which would save customers much trouble.

After all, carrying large amounts of cash on trips was risky business. Being able to avoid the hassle of transport was something merchants would greatly desire.

For now, it was merely a trial operation. If the results were good, Hudson wouldn’t mind expanding branches to all major cities nationwide.

If it could connect the entire nation, then the merchants’ circulating funds would likely rest in the accounts of the Near East Development Bank, then a cycle of unlimited rotation would begin.

Once the snowball had gathered enough mass, it would be appropriate to release idle funds in the accounts as loans, naturally drawing in wealth.

As long as the credibility didn’t collapse and the capital flow was efficient, it was possible that One Million Gold Coins capital could leverage tens of millions.

However, achieving this would also require cooperation with the local influences, sharing this large cake together.

...

At the Royal Capital Magic Academy, Hudson and Robert, who had recently broken through to the Sanctuary, were staring at each other.

You could dodge for a while, but not forever.

The debts owed would eventually have to be paid!

Although their descendants had already made concessions in smuggling trade, it didn’t affect Hudson’s intention to settle accounts.

The face of Sanctuary Powerhouses only worked on the outside world. Facing Hudson, it didn’t matter whether Robert had made a breakthrough or not.

"Marshal Hudson, don’t go too far!

We’re practically dead because of this, what more do you want?"

Robert said, lacking confidence.

The "Blasphemy" scandal wasn’t his doing, but the fact that news spread so quickly was related to their deliberate indulgence.

If measures had been taken immediately, the impact could have been completely suppressed.

But people are selfish, and the upper echelons of the Arcane Academy were no exception.

As one of those most likely to break through to the Sanctuary, who knew how many in the shadows were watching, trying to escape the public eye and achieve breakthrough in the Sanctuary was extremely difficult.

The emergence of the "Blasphemy" scandal undeniably provided a good opportunity to distract the spies’ attention. Everyone was busy passing the news back home, even their sudden disappearance had a reasonable explanation.

The birth of every Sanctuary Powerhouse would soon stir up the Continent, and Robert was certainly an exception.

If it hadn’t been seen with his own eyes, Hudson wouldn’t have known that he had broken through.

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