Building on the “corporations-as-accounts” model.
First and foremost, owning a corporation gives transparency to its finances. And the point of a bank is a bank can take money from your account to “invest” with it, and do other things with it…and give it back to you at interest.
So here’s how that starts to look.
You give an account holder say 999 out of 1000 shares (retaining 1 share for some ownership in the company).
That account holder can see that they deposited 99,900,000 isk to buy 999 shares.
They see that the bank, per its agreement, has removed 20million (remember banks in the real world have reserve requirements for the same reasons. You have to keep 10% or 20% in reserve to meet the demands of your customers).
They know that if they want to withdraw money from the account, they can sell a share at the fractional cost of the total account. So they can sell a share back to the bank for 100,000 or something like that.
Then, if they buy another share for 10 million, they know their account is now worth 109,800,000. Their 999 shares (they bought back a share to make a deposit), are now worth 109,800,000/999.
This represents how the Bank and Customer transact and keep witness of the transaction.
Of course, as with any BUSINESS, trust has to exist to maintain a relationship. But this method is much more VERIFIABLE than just “bookkeeping”.
Would you not agree?
The rules would exist and can be pasted into the description of each company/account.
The serviceability of the bank is that they offer a nominal, safe return on investment. In turn the bank does whatever they want with the money within the agreed upon reserve allowance.
I think the reserve allowance should be conservatively high, probably 80%. Meaning the bank never plays with more than 20% of the capital it raises through deposits.