Simple banking/line of credit expansion

[Parkerrush92]

In each country, (or even city) there should be a central bank, with an interest rate dependent of economic factors. Then, within the same city or country, there should be private banks (with a higher interest rate.) After reaching a set credit limit (which I believe should be lower for the central bank, *because central banks limit loans to private businesses AND because the private banks, should borrow from the central bank at the lower interest rate*) Companies should go to the private banks for loans.

Companies should only be able to borrow from the central bank of their country of origin (*should be added to my new taxes thread*) AND should be able to shop private bank interest rates, which of course would be subject to the interest rate of their country of origin.) Private banks should charge more for companies that don't have holdings in their region.


EX: USA Central Bank: Interest Rate:"X" Credit limit: Baseline Credit-80% |---> Private Banks: within the USA: Interest Rate "X"+(5% to 50%) Outside the USA: "X" + 5-50%+ 3%fee

[therealevan]

Banking/loans in general should be overhauled and redone.

[dimond]

+1

[Parkerrush92]

Just to clarify:

Private banks borrow from central banks at a low interest rate.

Companies borrow from private banks at a mark-up.

Companies should be able to "shop" private banks in different regions, to get the best loan, depending on the central bank rate, which in turn is set based on the local economy.