Turn 1 - Entering the Market

In the first turn, the bank begins to act like a bank.  We add $1,000 in loans and fund that growth with $1,000 in deposits.  This increases our earning assets and improves revenue potential, and we see net income improve from negative $44 to negative $34.

At the same time, capital declines as the balance sheet grows, and liquidity drops as we move funds out of liquid assets into loans.  We now have a loan portfolio with a credit profile of 675, introducing both yield and credit risk for the first time.

The bank has taken its first step toward growth—trading some liquidity for earnings potential.