Agency 8: Capital Bank
The Capital Bank is the eighth agency in the community. When limited partners join the community, they invest a minimum of $20,000, which is held by the agency. The agency uses these funds to invest in other agencies, which use it as operating capital, and for down payments when applying for loans. The agency participants in the storehouse’s development and running by capitalizing the Community and Commercial Banks, which then create loans to build it.
The Capital Bank Agency is part of the Economic Bureau, which anchors the community’s economic system. Other agencies in the bureau are Community Bank (agency 7) and Commercial Bank (agency 9). The Economic Bureau is critical in leveraging investment, and providing agencies with the necessary banking and investment facilities to serve participants effectively. As the community’s repository, the Economic Bureau receives, stores, and provides ways of utilizing resources that result in social and economic prosperity.
Roles of the Capital Bank Agency
The Capital Bank Agency performs a number of roles to support the community’s economy and ensure optimal utilization of limited partners’ investments.
- Receiving limited partners’ partnership interest and investing in community
- Capitalize banks to offer loans
- Banking services and loans to agencies in the second column
- Council of 50
Investing limited partners’ interests
On receiving limited partners’ partnership interest, the Capital Bank has the responsibility of finding the right investment options to put the funds. In selecting investment options, the bank considers risk and return. Most of the capital invested in the bank is in turn invested in community agencies.
While limited partners must invest a minimum of $20,000 once they join, or more in multiples of 20,000, they are encouraged to continually invest in the community as their business prospers. Each 20,000 investment is considered one unit. Once the limited partner’s term deposit held in the Community Bank reaches 20,000, including interest, it is transferred to the Capital Bank and added to their partner’s interest. The more units a limited partner has, the more the return they earn.
The Capital Bank invests limited partners’ interest in community agencies. Agencies use these funds for operational expenses. A significant portion of operations expenses is taken up by hiring contractors to develop agencies’ automated systems, rent, and as a down payment for loans to develop or acquire assets.
Agencies are run as a business and are expected to make a profit from which they can repay their loans, and pay the Capital Bank a return as the investor. Over time, the repayment of loans is done, and the agency can focus on using profits to pay a better return to the Capital Bank, improving services, and reducing the fees it charges participants to use its services.
For instance, the Human Relations Agency builds village buildings with loans from the Community Bank and a down payment from the Capital Bank. Once it has repaid loans, it can use future rent payments to improve the buildings, reduce rent rates, and pay the Capital Bank a better percentage in profit sharing than before.
The Capital Bank in turn obtains the funds it needs to pay limited partners for their investment from what it earns after investing in agencies. All agencies charge for their services weekly, including rent and lease of equipment and land. They also pay their obligations weekly, allowing the Capital Bank to pay investors (limited partners) a weekly return. The return paid to investors is a factor of the level of investment (the more investment, the more the return) and economic conditions, such that if agencies are making more money, they will pay a higher return. It is also dependent on the stage the community is in. In the initial stages, more resources will be dedicated to paying off loans and operationalizing the community, and only later will more returns be available.
Capital to bank agencies
A significant amount of the capital that the Capital Bank invests in community agencies is earmarked for the two banks – Community Bank and Commercial Bank. The banks use this money to create loans to villages, districts, and agencies. As with funds invested in other agencies, the Capital Bank receives a return on its investment from the banks.
Since the banks cannot issue loans past their capital adequacy ratio, the Capital Bank can determine the amount of loans that each agency can lend, and therefore, help to manage the community’s economic trends. Besides the capital investment, however, the two banks use customers’ deposits to further enhance their ability to offer loans. Nevertheless, since most of the funds are held in the Capital Bank as partnership interest, the agency is a powerful force in shaping banks’ loan strategies.
Banking services and loans
Each of the three bank agencies offers banking services and loans to the agencies in its column. A column is a grouping of 8 agencies that are aligned in terms of responsibilities and areas of cooperation. The Capital Bank is part of the second column. The agency offers banking services to village presidencies and district presidencies that serve agencies in the second column. This is illustrated below:
| Agencies banking with Community Bank (agency 7) | Agencies banking with Capital Bank (agency 8) | Agencies banking with Commercial Bank (agency 9) |
|---|---|---|
| Human Relations (agency 1) | Stewardship (agency 2) | Business Operations (agency 3) |
| Health and Nutrition (agency 4) | Life Planning (agency 5) | Recreation and Arts (agency 6) |
| Communication (agency 10) | Bylaws and IT Infrastructure (agency 11) | Public Relations (agency 12) |
| IP (agency 13) | Legal (agency 14) | Audit (agency 15) |
| Accounting (agency 16) | Data and Publishing (agency 17) | QHSE (agency 18) |
| Business Planning (agency 19) | Marketing (agency 20) | Risk Management and Underwriting (agency 21) |
| Cropland and Pastures (agency 22) | Community Land and Utilities (agency 23) | Raw Materials and Transport (agency 24) |
In the villages and districts, presidencies access banking services as follows:
| Village/ District presidencies banking with Community Bank | Village/ District presidencies banking with Capital Bank | Village/ District presidencies banking with Commercial Bank |
|---|---|---|
| Village presidency for human relations | Village presidency for stewardship | Village presidency for business operations |
| District presidency for health and nutrition | District presidency for life planning | District presidency for recreation and arts |
Storehouse
The community storehouse is a 15-acre complex that includes a mall, a stadium, and recreational and arts facilities. Outside the community, there is a mirrored storehouse that the community uses to store grain. The three agencies in the Economic Bureau each have a specific responsibility in developing and running the storehouse, as follows:
| Community bank | Capital Bank | Commercial Bank |
|---|---|---|
| Corner facilities – theatre, recreational center, concert hall, and sports store | Provides capital that Community and Commercial Banks use to issue themselves loans | Stadium, farmers’ market, and retail stores located in between corner facilities |
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The council of 50
50 adjacent communities form a NewVista, which occupies 3,844 square miles of developed areas, and additional land in cropland, pastures, mines, shared wilderness, and hinterlands. The communities in a NewVista coordinate on a number of issues, such as shared transport infrastructure, the management of wilderness and hinterlands, and the specific nature of the stadiums in each community’s storehouse. The coordination on stadiums is done to ensure that the NewVista has a rich variety of such facilities, such that, for instance, there is no oversaturation of soccer or baseball stadiums and a lack of other important facilities.
The agency presidencies of the Capital Bank Agency form a Council of 50 which coordinates to carry out these roles. The 200-member council (since each presidency has 4 presidents representing A, B, C, and D divisions) meets virtually every quarter, with informal meetings being held as needed. The meetings deliberate on how to finance and manage different facilities that have an inter-community aspect, as well as establishing other areas of cooperation, and facilities that are needed to improve the communities’ social, economic, and environmental development.
How the agency works
Background on presidencies
Every presidency is a four-member entity whose members represent one of the four major demographics, known in the community as a division: married men (A), married women (B), single women (C), and single men (D).
These four major demographics are evenly split in ordinary society, with each group accounting for between 23 and 27% of the population, and with regular fluctuations as people’s status changes. The community appreciates that discrimination across all social categories happens based on marital status, other social categorizations notwithstanding: married men are likelier to dominate other demographics, especially single men and single women. Married women are also likelier to have better outcomes in careers and leadership than single women.
The community’s infrastructure promotes equal access to economic and social resources and opportunities. The composition of the community as a whole and those who serve it in the community public service is closely monitored to prevent numerical domination, which can lead to nepotism or unequal access.
Besides marital status, the recruitment to be a participant, and to serve in the public service carefully considers other social categorizations, to ensure racial, ethnic, religious, and sexual groups are well represented in the community as they are in the society in which a community operates. These considerations inform the constitution of these presidencies.
Even though presidents represent a specific demographic, they serve the whole community. Therefore, their identification with a demographic is purely for the purposes of representation.
Agency presidency, bureau board, and demographic presidencies
The Capital Bank Agency is served by an agency presidency, comprised of 4 presidents from the four divisions[1] which handles strategy formulation and adjustment, as well as formulating and communicating operational procedures for the agency. Additionally, the presidency facilitates the setting up of the agency’s automated system and adjusts it as necessary to better achieve its goals.
As part of the Economic Bureau, the agency presidency forms a bureau board with agency presidencies serving the Community and Commercial Bank agencies. The board acts as a check and monitoring tool for individual presidents and agencies, especially when decisions have far-reaching implications for the community.
Within the bureau board, three presidents from the same demographic form a demographic presidency. There are four such presidencies in the bureau. The demographic presidency works on matters of common interest to a demographic, that cut across the three agencies. The demographic presidency also plays an important role in the mentorship and training of new presidents.
| Demographic presidency A | Demographic presidency B | Demographic presidency C | Demographic presidency D | |
|---|---|---|---|---|
| Agency presidency, Community Bank (7) | 7A | 7B | 7C | 7D |
| Agency presidency, Capital Bank (8) | 8A | 8B | 8C | 8D |
| Agency presidency, Commercial Bank (9) | 9A | 9B | 9C | 9D |
Limited partners and branch presidencies
Limited partners and dependents
A limited partner is the basic unit in the community. A limited person, usually above 18 years old, but sometimes as young as 16, has been admitted into the community and has invested $20,000 as partnership interest, for which they earn a return. This is regarded as one unit of partnership interest.
Over time, a limited partner can add more units of partnership interest, as their business prospers. The more partnership interest units a limited partner has, the more the return they receive from the Capital Bank.
A dependent is a minor, or a person living with a disability, under the care of a limited partner. In some instances, a dependent may be a fit adult, who for various reasons is supported by community agencies, and assigned by contract to a limited partner. Limited partners are responsible for any legal agreements that their dependents enter into, either with community agencies or other participants, and therefore have the right of attorney.
Together, limited partners and dependents are referred to as participants. Participants who are dependents, because they are still minors, can start a business when they reach 12 years of age. This allows them to save up and invest $20,000 into the community by their 18th birthday, and possibly as early as 16.
Limited partners and their dependents reside in apartments (village buildings). Each apartment has 4 floors, with each floor containing 16 apartments. Each floor has floor has 7 – 12 limited partners, with each limited partner having 1 – 3 dependents. Each floor therefore has around 25 residents. With four floors, each building has approximately 100 residents. An apartment building also forms a branch.
Limited partners and unit
A limited partner is the basic unit in the community. A limited partner, usually above 18 years old, but sometimes as young as 16, has been admitted into the community and has invested $20,000 as partnership interest, for which they earn a return from the Capital Bank Agency, which invests other community agencies. This is regarded as one unit of partnership interest. Over time, a limited partner can add more units of partnership interest, as their business prospers. The more partnership interest units a limited partner has, the more the return they receive from the agency.
A dependent is a minor, or a person living with a disability, under the care of a limited partner, and who has, in any of these cases, given their power of attorney to the limited partner. In some instances, a dependent may be a fit adult, who for various reasons is supported by community agencies, and assigned by contract to a limited partner. Limited partners are responsible for any legal agreements that their dependents enter into, either with community agencies or other participants. Together, limited partners and dependents are referred to as participants.
Participants who are dependents, because they are still minors, can start a business when they reach 12 years of age. This allows them to save up and invest $20,000 into the community by their 18th birthday, and possibly as early as 16. Limited partners and their dependents reside in apartment buildings (village buildings). Each apartment building has five floors, with four containing apartments. An apartment building also forms a branch.
Captains and branch presidencies
Of the approximately 100 residents in a branch, around 40 of them are limited partners.They are divided into 4 units, each of which has 10 limited partners and their dependents. The limited partner membership in a unit is diverse, containing different social groups that are reflective of the society within which a community operates.
Additionally, a unit contains members of the four main demographics: married males (A), married females (B), single females (C), and single males (D).
The 4 demographics in the branch form 4 groups, as follows:
- Group 1: married males and married females
- Group 2: single females and single males
- Group 3: married males and single males
- Group 4: married females and single females
Within each group, there are different subsets, known as classes, based primarily on age. There is a class for Nursery (0-2), toddlers (3 – 5), young children (6-9), pre-teens (10-12), teens (13-18), young adults (19-31), adults (32-72), and empty nesters (73+).
| Meeting week | Class 1 | Class 2 | Class 3 | Class 4 | Class 5 | Class 6 | Class 7 | Class 8 |
| Week 1 and 3 | All married adults | All single adults | Teen boys and girls | Pre -teens | Young children | Toddlers | Nursery | |
| Week 2 and 4 | All men | All women | Teen boys | Teen girls |
Further details on the composition of units, groups, classes, and branches, and their meeting schedules, is detailed here.
Recruitment and diversity
Captains are responsible for recruiting limited partners into the community through their council and by extension, branch. A captain does not recruit limited partners only from their demographic. Instead, they work to ensure that their recruits are diverse, considering social categorizations, gender, and social status, in addition to demographic groups.
Captains work in concert with their fellow captains in the branch presidency, and other presidencies in a village and district to ensure that the district is as diverse as possible. They are guided by present data on how diverse their district, village, and branch are, and what needs to be focused on to improve. They are also guided by community bylaws, which expressly require diversity as shown by demographic data about a population from which the community intends to recruit limited partners.
The captain serves as a service extension of the Human Relations Agency, though they also act as an interface between participants and other community agencies. For agencies that do not have operational presidencies, such agencies in the Economic and Public Administration Bureaus, captains come in handy in helping participants navigate these agencies’ automated system and other relevant tools used by the agency to deliver services.
The automated system is designed to help participants with all the help they need in matters related to various agencies, including the Human Relations Agency. However, should they run into problems, captains assist them in navigating the system, or direct them to relevant contractors who help them at a fee.
Automated system
For most of its duties, the Capital Bank works through an automated system. When a limited partner invests in the community, the Capital Bask issues them with a deed, which shows the money they have invested, and the applicable terms of the legal agreement. The automated system also helps agencies as they interact with the bank, including maintaining accounts and applying for capital investment and loans from the agency.
The management of part of the storehouse that the Capital Bank handles is also automated, with the agency automating applications for contracts to manage the space, collect rent, and identify maintenance and repair needs.
Contractors
The Capital Bank relies on contractors to handle aspects of its operations that the automated system, agency presidency, and branch presidencies cannot handle. Contractors build the storehouse and develop the automated system. The agency also hires contractors to help in developing strategies and operational policies, and to monitor implementation as necessary.
Participants can also hire contractors to assist them in navigating the automated system. In addition, contractors working as financial professionals can help participants make better financial decisions and enable them to make the most of the community’s economic model.
Inter-agency cooperation
The 24 community agencies form three columns of 8 agencies each. There is loose collaboration between the agencies in a column. The Capital Bank Agency is part of the second column.
The Capital Bank Agency issues loans to all agencies in its column. The agency collaborates with the Community Land and Utilities Agency (agency 23), investing capital, and issuing loans the agency needs to buy land and develop utilities. The bank also collaborates with the Legal Affairs Agency (agency 14) to draw up titles to issue to limited partners as they invest, and to govern its numerous capital investment and loan agreements with agencies, districts, and villages.
Presidencies’ offices, meetings, and quarterly conferences
Offices
The Capital Bank Agency’s agency presidency has permanent dedicated offices in District Building 8’s first floor, on the western side. Facing them on the eastern side are the offices for trustee presidency and Regulatory Bureau’s operational presidency serving the agency and District 8.
Trustees and the regulatory operational presidencies alternate their offices. Trustees have the offices in building 8 on Mondays and Wednesdays, while the operational presidencies use the offices on Tuesdays and Thursdays, as shown in this timetable:
| Building 8/ Capital Bank | Building 20/ Marketing | |
|---|---|---|
| Monday | Trustee presidency | Regulatory Bureau presidency |
| Tuesday | Regulatory Bureau presidency | Trustee presidency |
| Wednesday | Trustee presidency | Regulatory Bureau presidency |
| Thursday | Regulatory Bureau presidency | Trustee presidency |
The first floor’s layout is as follows, including other public servants who serve District 8.
Working hours and meetings
Agency presidents, trustees, and regulatory agency presidents work in their offices on a full-time basis. To allow for this, they are required to be at least 50 years of age, be experts in NewVistas concepts, an be semi or fully retired from their business. This allows them to dedicate much of their productive time to serving the community.
Other presidencies work from Monday to Thursday, from 8 – 8:45 AM. their offices are converted for this purpose, and can thereafter be used for other activities, such as office space for participants, hotel rooms and hospital consultation rooms. On Thursday, each presidency (four presidents serving A, B, C, and D) meets for a 45-minute meeting from 9:00 to 9:45 in the morning.
On the last Friday of each quarter, between 9:00 AM and 12:00 PM, each demographic presidency meets. The three-member presidency discusses common bureau matters that are of interest to the demographic they serve. On Saturday, again between 9:00 AM and 12:00 PM, the whole board meets, where the presidents present their input from the previous day’s demographic presidency meeting, and prepare for the quarterly conference. The aim is to have a cohesive presentation during the quarterly conference but tailored to specific demographic interests.
Quarterly conferences
Quarterly conferences are held on the last Sunday of each quarter, from 9:00 AM to 3:00 PM, with a lunch break in between. During quarterly conferences, each demographic presidency sits together in the same row.
Quarterly conferences are held in District Buildings 5 and 17. Each building has a lower and higher assembly court. The different demographic groups use the assembly courts as follows:
| Building | Assembly court | Demographic |
|---|---|---|
| 5 | Lower court | Married men (A) |
| 5 | Higher court | Married Women (B) |
| 17 | Lower court | Single women (C) |
| 17 | Higher court | Single men (D) |
Branch presidencies do not attend quarterly conferences. Instead, they follow the relevant proceedings online alongside other participants.
Each of the four assembly courts has seats for 480 presidents representing the respective demographic. In the diagram below each of the 4 courts is illustrated. The ceiling of each court has an elliptical arch that enables agency presidents, who are the only ones who make a presentation during the conference, to speak without the need to amplify their voices. The 480 seats are easily rotatable to enable presidents to face whoever is speaking.
Each of the four courts has an identical arrangement and number of seats. The exact arrangement of each court can therefore be illustrated using one court, in this case, building 5’s lower court that is used by married men (A).
Within an assembly court, the 480 presidents are arranged in terms of demographic presidencies of 3. The Economic Bureau’s demographic presidency for married men (7A, 8A, and 9A) sits in the highlighted seats. Various district demographic presidencies also sit on the same row.
[1] These demographic groups are married men (A), married women (B), single women (C), and single men (D).
