Bank

Overview
Starting up a bank for some could prove very intimidating for alot of people. In the western world we see the banks as giants that eats everyones money and charges them for every little penalty. However on the inside you have to understand how banks function and how they make money. The Federal Reserve wants to give incentives to banks for interest. If you and your team have outstanding credit you can become president and appoint boardmembers to your bank.

Financial
$6 millions up to $20million to start up.Depending on state leasing,fees,etc. If you have lets say 10 board members putting up $100,000 each bring you to 1million I'm sure depending on who your dealing with can solicit the rest to local investors,businessman, for shareholder share. If you even out all the shares and make sure everyone is eating you will still come out on top everyone earning close to a billion in their lifetime. This is also put into account that effective management is taken place.The Government is actually quick to throw money at new banks.

"The government has $350 billion in Troubled Asset Relief Program (TARP) funds that it can use to encourage new bank lending. If this money is directed to newly created good banks with pristine balance sheets, it could support $3.5 trillion in new lending with a modest 9-to-1 leverage. Right out of the gate, the newly created banks could do what the Fed has already been doing -- buying pools of loans originated by existing banks that meet high underwriting standards" Economist

Legal and Compliance
First in foremost you would need to write up a charter for your bank. This similar to a business plan in the sense that there need to be outlined the purpose of your bank. In addition you would need to register with the FDIC( Federal Deposit Insurance Commision). You will have to contact the FDIC to get the application for the insurance [|here]. Your gonna spend a lot of time on conducting the paper then you are doing anything else. The charter will take about 18 month process to process the paperwork. Your charter will have to be a typical of 2,000 pages and 140 pounds of weight.

Location and Facilities
As far as location you would of course focus on high traffic areas in your city or town. You could also if you are into a nich community, credit union bank. You would rely on that area. For example, let say that you wanted to set up a company for fictional Steel Workers Inc. It would be best to set up the bank close to where the Steel Workers Inc employees work close to.

Most banks have an average of close to 4100 sq feet. Facilities include telling section,seating, offices, safe sections, and usually two accounting rooms with a breakroom.

Growth Strategy
You can become a prestige bank in your area with a great track record. You can merge with a major bank if you feel that you have enough money, being that you proved successful. Your bank can create an online banking feature via your website which will be able to contend with the larger banks. You can also dive into investing in real esate, otc stocks and actually go public and sell your stocks to investors.