The company was originally set up to exchange currency. This expanded under the supervision of the Overord of Kalimsport to searching for forged or forbidden coinage, and generally supervising the circulation of coin in the city. The government soon required them to keep their cash and records available for inspection, and to obtain guarantors who would be answerable for their outstanding debts up to a certain amount. In return for these restrictions, the government backed the bankers’ credibility: it recognized entries in their books as legal proof of transactions carried out through them. Somewhat later, it ordered guardians of minors to deposit the wards money in a bank.
Some citizens found it convenient to deposit some of their money in a bank account and receive a moderate interest while using the account for receiving and making payments by written transfer in the banker’s book. A reliable depositor was often allowed to overdraw his account within certain limits. The banker, in turn, was entitled to invest in his own trade the deposits of his clients.
However the real boon of the bank is that it facilitated commerce. Instead of traveling with their goods from city to city, traveling with a strongbox of money, merchants could instead trade through factors and a Bill of Exchange that was sent from bank to bank, honoring the exchange of goods and currency. When the deal was done, it was done by letter. No actually money moved between cities. However, this is an idea that is only slowly catching on with merchants across Zaldara.
Services and Regulations
Depositors may open accounts with the Bank of Kalimsport with a letter of reference from either another account holder or a reputable citizen of note.
A depositor must make an initial deposit of at least 10 gold pieces in order to begin an account with the Bank of Kalimsport.
Depositors can expect a bonus of 5% per year on their deposit accounts, payable on the anniversary of their initial deposit.
Reliable depositors may overdraw on their accounts by up to 25%.
In exchange for these services, depositors agree that the Bank of Kalimsport may use the currency deposited in its own trade exchanges.
The Bank of Kalimsport also offers the rental of chests to hold valuables and other goods. The rates for this service are as follows:
1 gp per year
2 gp per year
5 gp per year
10 gp per year
Chest Rental is payable upon each anniversary of their initial deposit. There is also a 25 gp drilling fee for losing one’s key.
Chests may also be transferred from one branch to another. The transfer fee is 5 gp per mile transferred. However, the Bank of Kalimsport guarantees the safety of your goods and deposits during the transfer. Should mishap occur during the journey, the value of your deposit will be refunded.
For coin accounts, each quarter, the main bank in Kalimsport sends a copy of the master account ledger to each branch. Should an account holder travel to one of the branches and need to withdraw funds from their account, their name should appear on the master account ledger. If not, correspondence will need to be sent to the main bank to confirm that the person is, indeed, an account holder in order for funds to be withdrawn. This is for the protection of the account holder.
Merchants may also enact transfers of funds through Bills of Exchange.
The Bank of Kalimsport has branches in the following cities: