Insight: I used to think lending at interest was evil...

[Seal]

I think lending without sufficient collateral should be avoided at all cost.

The moment collateral doesn't suffice, you need to get the government and the legislative to intermediate in a private transaction. Should be a last resort and not a common occurrence.

+1

This is the biggest lesson learned in the housing crisis. Mortgages were given that were more then the value of the homes. Once repossessed, the bank couldn't even sell it to cover their losses as it was worth less than it should have been valued.

Over valued house = people being greedy (always wanting their home to be valued more)

[pusle]

With bitcoin it's actually possible to monitor how much of your funds are left as a reserve with your bank.
If you transfer 100BTC to your bank account, and have selected a 50% CCR option, the balance of that account should never go below 50BTC.
Sure you might not get much interest in this case but you can chose your risk vs interest payment on an individual basis.
The account/wallet monitoring of the blockchain could be an app you run yourself  or a 3rd party service.

[molecular]

With bitcoin it's actually possible to monitor how much of your funds are left as a reserve with your bank.
If you transfer 100BTC to your bank account, and have selected a 50% CCR option, the balance of that account should never go below 50BTC.

I don't think that's true. The reserves are there for a reason...

Assume both you and I put BTC 100 into the bank. The bank invests 50 of your BTC and 50 of my BTC, 100 BTC in sum, the other 100 it keeps as reserve, so it fulfills the 50% reserve requirement.

Now I go ahead and withdraw 80 BTC. Now 30 have to come from "your account", the bank now has to liquidate some of its investments because its reserve ratio dropped below 50% (only 30 BTC for 130 deposits), but in the meanwhile (that takes some time), the reserve is used to pay me my 30 BTC. Correct?

[pusle]

yes you're right. So the term "CCR" is incorrect when used for an account like this.
This method does let the customer choose the level of risk vs payback. A sliding scale between a storage/safekeeping and investment/returns.
It would be up to the bank what they keep in reserve to pay out the full amount on withdrawal.

Perhaps if all the accounts with corresponding bitcoin addresses was published a real CCR monitor system could be designed?

[molecular]

yes you're right. So the term "CCR" is incorrect when used for an account like this.
This method does let the customer choose the level of risk vs payback. A sliding scale between a storage/safekeeping and investment/returns.

Hehe, but how is this implemented? When push comes to shove, the customers with lower risk level get their funds back first?

It would be up to the bank what they keep in reserve to pay out the full amount on withdrawal.

Perhaps if all the accounts with corresponding bitcoin addresses was published a real CCR monitor system could be designed?

What's the aim again here? You want to make auditable that banks keep the promised reserve ratio? Per account? I'm unsure I get the idea. Kinda confused, probably too much sun today