The benefit of setting up a bank!

[italkcash]

In times where Bear Stearn took the fall in a credit crisis that simply wont stop, setting up a bank could seem as a bold move.

But running a bank is a lucrative business no matter how you view it. As a manager of a bank the most important thing is of course to invest money and give your clients an interest rate.

A good portfolio of diverse long term investments ensures a bank a good return rate, something that cannot be explained here.

What I find mostly interesting about banks is that the range of products that a bank can offer to make money. You can as a bank manager choose to make deals with Visa/MasterCard to offer debit card solutions, anonymous accounts and products that can seem very interesting for people avoiding taxes. A high priced account costing 10.000€ a year is something most people would pay if it can ensure them total and complete anonymity.

Another offer if I was running my own bank would be to let people deposit their money in metal currency as a speculative sub account. A sure hit and a much better alternative than gold speculations today.

There will be more posts here on banking. Feel free to comment anyway.

[italkcash]

As a bank manager it is important to attract clients, in most cases you want wealthy clients and huge corporations. Private banking vs corporate banking is the game of todays banks.

Offshore incorporated banks will most likely go for the corporate clients as having private clients is a mess.

For corporate clients it is important to setup a strategy of good tools. company credit cards, trading accounts for equities and derivatives, accounts in different currencies, asset manager and merchant services.

Foremost important is of course the fund management. Either as a bank you should have internally employers that does long term investments or simply outsource the funds to Hedge Funds.