Chapter 1680 Bank Business

Small banks have the troubles of small banks.

Big banks have big bank worries.

vary.

The problems of small banks are basically solved with money. In addition to the seven major banks in the Federation, there are actually many private banks.

Because of the provisions of the Anti-Monopoly Law, basically as long as people can meet the requirements of industry rules, they can easily set foot in any industry.

There is only an access system in the federation, and there is no real access control. It will not say that any company has completed the access standards, and there are people who prevent it from entering the industry.

This behavior itself is illegal.

What about private banking?

Very federal!

Because the Commonwealth is a multi-ethnic immigrant country, there is no unified race here, and almost everyone is from different countries.

Before coming to the Federation, they had different cultural backgrounds, different beliefs and worship, and had different three views and moral requirements.

Finally, they all came here.

Although these people seem to have been integrated into the federation on the surface, there are many people who are more or less separated from the federation system in terms of personal finances.

This is why so many private banks in the Federation exist!

Serving the same family has also become the main business purpose of these private banks, as well as the source of customers.

They opened banks and kept their belongings safe for their fellow clansmen, and then paid them interest on their savings at standard interest.

As long as these private banks meet industry standards and have sufficient margins, the FSC will grant them wholesale licenses.

However, the "security level" of private banks is not high enough, so even if it has a large number of depositors and savings, it cannot take out most of them for financial operations.

For example, the seven major federal banks, because of their large size, the financial management will give them a higher level of security.

These seven banks can take out 70% of the savings in the bank for commercial investment and financial operations.

These seven banks can be investors in many financial fields and can also be transformed into market makers when necessary, with relatively little risk.

So they only need a small margin to maintain the normal operation of the bank.

But those small-scale private banks are not good. They are small in size, have few depositors, and don’t have a lot of savings, and they don’t even have dominance in the financial market.

It is a crime for depositors to let such private banks use 70% of their savings for financial investment!

Because private banks do not have the ability to resist risks in the financial field, once their financial investment plans fail, basically the money will not be recovered.

And if they want to make up for this part of the loss, they will inevitably use more savers' savings!

You know, private banks are the same as some private equity foundations, they just use customers' money to make financial investments.

The only difference is that private banks can openly solicit deposits to the society, while private equity funds can only raise funds in a targeted manner.

Therefore, the Financial Supervisory Commission is relatively strict in the risk control of private banks.

In order to avoid the occurrence of private bank failures due to investment decisions.

Basically, the minimum deposit of private banks should be more than 70% of the total savings, which is exactly the opposite of the seven major banks.

That is to say, for every 100 yuan that depositors save in a private bank, the boss of the private bank can only use up to 30 yuan of it for investment and business activities.

But... there will never be a shortage of adventurous people in this world, and the working mode of the Financial Supervisory Commission is to conduct periodic inspections. If no one reports it, it will not take the initiative to attack.

So there are a lot of private banks that are actually operating illegally, taking out excess depositors' money for commercial investment.

Sometimes some depositors need money, or some contracts expire, etc. In short, when they need a lot of cash, they don't have any money in their pockets.

They can't always tell their clients, and their contract counterparts, that they don't have money.

Then a run could bankrupt them in an instant.

So at this time, small banks borrowing money from big banks has become the practice among private banks.

Most of the time, they don't need to borrow for a long time, they just have to deal with the inspection of the FSC, or use it to deal with the contract at the end of the contract.

This is usually three or five days, and at most a week or two.

And this kind of business is very common within the banking industry. The former six major banks plus Lynch's Blackstone Bank are at the top of the food chain.

For example, the interest rate for one million federal sol dismantling a day is sometimes as high as one percent click, which is a higher interest rate than usury!

But everyone generally agrees with such an interest rate. After all, they have not borrowed for a long time. At the same time, large amounts of cash need to be respected in any field.

Since Blackstone Bank officially appeared in front of people, until now, the main business and profits are still in these small and medium-sized banks.

Lending them money has high profit margins and low risk.

Investing in any business or field will always have a saturation point.

For example, a business may require a large amount of capital in the early stage of development, but this "large amount" is actually only a part of the actual number.

It cannot be infinite.

But in the field of lending by banks and financial institutions, any amount of money can be eaten.

Even 10 billion is no problem!

"...As for the issue of stockpiling, we will put it on the agenda after the construction of our branches in various regions is completed."

"Before that, we must first maintain some of the businesses we are currently stabilizing, and at the same time consider expanding our business without touching the sensitivity of our peers."

"While some of the fast-paced lending and lending is currently bringing us considerable benefits, we should consider setting up more investment units."

"Let us achieve multi-layered, diversified, multi-choice in our investment business and profitable business..."

On Blackstone's board of directors, Lynch made demands on the company's future development.

Many of these people were dug up by him from the six major banks, and some were from the Blackstone consortium. Those capital tycoons were also very interested in joining the banking industry.

If they are willing to join, Lynch will naturally not be stingy. If he refuses to give him money, then he is really stupid.

This industry just needs to have so many people. When these people bought a dollar of stock from Lynch, they would also put ten dollars, twenty or thirty dollars, or even a hundred dollars into the bank as capital increase. !

That is to say, every time Lynch sells 10,000 yuan of shares, the total assets of Blackstone Bank will increase ten times, dozens of times or even hundreds of times of assets!

It may seem as though no one will invest in such an obviously losing investment, but the opposite is true.

Not only people from the six major banks are interested, but also people from the Blackstone Consortium, and even those free financial institutions are also very interested.

At present, the shareholding structure of Blackstone Bank has undergone tremendous changes. Lynch has reduced his holdings to 33.4%, and the remaining about 40% will be traded as non-tradable shares to other shareholders.

Some of them, about 15 percent, exchanged shares with the six major banks in a cross-shareholding manner.

Of the remaining shares, 20% will be issued and listed as tradable shares, and the rest will be used as incentive options for partners.

Lynch Club has always been the largest shareholder of the bank, and he now holds the power of a one-vote veto, because in the bank, even if everyone's rights are concentrated, it may reach 66.7%, they It is impossible to initiate a decisive decision on Lynch, who owns more than one-third of the rights.

On the contrary, Lynch can veto all their decisions with one vote.

People have to learn to protect themselves.

Since the establishment of the bank, the first large order has been an international loan of more than one billion yuan. Gavra has borrowed one billion from Blackstone Bank and more than five billion from other banks. A total of six billion loans were used to purchase Various technical and military equipment.

Airplanes are a big part of that.

In a war, whether the ground forces can advance smoothly and safely depends entirely on whether the air superiority can be firmly grasped.

Launching a ground war without air supremacy is no different from courting death.

Gafra and Pongio's air battle over Ameria consumed a large number of their own aircraft.

With the industrial production capacity of the island of Gavra, the speed of their production of aircraft obviously cannot keep up with what they consume on the front line, plus various other military equipment.

They have no choice but to buy.

It's a big deal because it's not low-interest, it's a normal-rate loan, and it puts no real financial pressure on Blackstone.

The bank paid half of the cash to Blackstone, and the remaining half would be paid in batches on a per delivery basis.

Lynch doesn't care whether other people make money or risk, anyway, he deserves not less, but more.

But in addition to this big business, other business projects also need to be established as soon as possible.

After all, this is a commercial bank, and after discussing with the board of directors, Lynch decided to push it to go public!

For this bank to go public ~lightnovelpub.net~ and to achieve visible and effective growth in the stock market, good earnings are required.

Lending between banks and financial institutions alone will not last long.

The main projects should still be placed in the aspect of storage and investment...

As the president of the bank, Vera sat beside Lynch.

Many people are not familiar with or know Vera, and they are a little confused about why she can become the bank president.

But those who knew her did not seem to have any curiosity or doubts about Lynch using her.

Because of the position of the president of the bank's head office, the key is not how strong the head of the head office is in business, how much savings he can take for the bank, or what business he can develop for the bank.

Most importantly, she needs to be able to reassure shareholders and at the same time have more influence on the high-level society.

She has these two points, or Lynch, who stands behind her and trusts her, has it!