1681 Bank Business

Small banks have small bank worries.

Big banks have big bank worries.

Each is different.

The problems of small banks can basically be solved with money. In addition to the seven major banks, the Federation actually has many private banks.

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

In the federation, there is only an access system, but no real access control. It cannot be said that any company has completed the access standards, and there are still people who are blocking it from entering this industry.

This behavior itself is illegal.

How do you call this private bank?

Very federal!

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

Before coming to the Federation, they had different cultural backgrounds, different beliefs and worships, and different outlooks and moral requirements.

Finally, they all came here.

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

This is also the reason why many private banks in the Commonwealth exist!

Serving fellow citizens has become the main business purpose and source of customers of these private banks.

They opened banks and helped their fellow tribesmen keep their belongings, and then paid them interest on their savings at standard interest rates.

As long as these private banks meet industry standards and have sufficient margins, the Financial Supervisory Commission 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 funds, it cannot take out most of them for financial operations.

For example, for the seven major federal banks, due to their larger size, the Financial Supervisory Authority will give them a higher security level.

These seven banks can use 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 transform into bankers when necessary, with relatively low risks.

Therefore, they only need a small amount of margin to maintain the normal operation of the bank.

But those small-scale private banks cannot do this. They are small in size, have few depositors, and do not have large savings funds. They do not have dominance in the financial market.

Letting this kind of private bank use 70% of the savings for financial investment is a criminal act for the depositors!

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

And if they want to make up for this loss, they will inevitably use more depositors' savings!

You know, to put it bluntly, 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 savings from the public, while private equity funds can only raise funds in a targeted manner.

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

In order to avoid the occurrence of private bank bankruptcies caused by mistakes in investment decisions.

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

That is to say, for every 100 yuan saved by a depositor in a private bank, the boss of the private bank can only take out a maximum of 30 yuan for investment and business activities.

But... there will never be a shortage of people who take risks in this world. In addition, the work mode of the Financial Supervisory Commission is periodic inspections. If no one reports, they will not take the initiative.

Therefore, many private banks are actually operating illegally. They use excess depositors' money for commercial investment.

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

They can never tell their clients and contract partners that they have no money.

Then a run can bankrupt them in an instant.

Therefore, at this time, it has become a common practice among private banks for small banks to borrow money from large banks.

In many cases, they don't need to borrow for a long time. They just need to deal with the inspection by the Financial Supervisory Commission or use it to pay for the contract when the contract ends.

This usually takes three to five days, or at most a week or two.

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 dismantling one million federal soles per day is sometimes as high as one percent per click. This is a higher interest rate than loan sharking!

But everyone generally agrees with this interest rate. After all, the time they borrow is not long, and large amounts of cash need to be respected in any field.

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

Lending money to them has high profit margins and low risk.

When investing in any enterprise or field, there will always be times when it becomes saturated.

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

It cannot be infinite.

But in the lending field of banks and financial institutions, no matter how much money you have, it can be eaten up.

Even 10 billion is no problem!

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

"Before this, we first need to maintain some of the businesses we are currently focusing on, and at the same time consider expanding our business without touching the sensitivities of our peers."

"Although some fast-paced lending and loans can bring us considerable benefits, we should still consider establishing more investment departments."

"Let us achieve multi-layering, diversification, and multiple choices in investment business and profit-making business..."

At Blackstone's board meeting, Lynch made requirements for the company's future development.

Many of these people were recruited by him from the six major banks, and some were from the Blackstone Group. Those capital giants were also very interested in joining the banking industry.

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

This industry happens to need so many people. When these people buy a dollar of stock from Lynch, they will also invest ten dollars, twenty or thirty dollars, or even a hundred dollars as additional capital into the bank. !

In other words, for every 10,000 yuan worth of shares Lynch sells, Blackstone Bank's total assets will increase ten times, dozens of times, or even hundreds of times the assets of 10,000 yuan!

It may seem like no one would invest in such an obviously losing investment, but the truth is exactly the opposite.

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

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

Some of them, about 15%, exchanged stocks with the six major banks in the form of cross-shareholdings.

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

Lynch will always be the largest shareholder of the bank. He now holds the power of veto, because in the bank, even if everyone's power is concentrated together, it may reach 66.7%. They It is impossible to initiate a decisive resolution against Lynch, who holds more than one-third of the rights.

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

People must learn to protect themselves.

Since the establishment of the bank, the first big order was an international loan worth billions. Gaevra borrowed one billion from Blackstone Bank and more than five billion from other banks, a total of six billion in loans, for purchase Various technical and military equipment.

Aircraft is a big part of it.

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

Launching a ground war without air superiority is no different from seeking death.

In the air battle between Gaevra and Pengeo over Amelia, a large number of domestic aircraft were consumed.

With the industrial production capacity of Gefra Island, their production rate of aircraft is obviously unable to keep up with what they consume on the front line, plus various other military equipment.

They have no other option but to buy.

This is a big business because it is not a low-interest loan, it is a loan at a normal interest rate, and at the same time it has no actual financial pressure on Blackstone Bank.

The bank paid half of the cash to Blackstone Airlines, and the remaining half will be paid in batches based on each delivery.

Lynch didn't care whether others made money or whether there were risks. Anyway, he deserved more than anything less.

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 Lynch decided to push it to go public after discussing it with the board of directors!

For this bank to go public and achieve visible and effective growth in the stock market, it must have good financial reports.

In fact, relying solely on lending between banks and financial institutions cannot last long.

The main projects should still be focused on attracting reserves and investment...

As the president of the bank, Vera sat next to Lynch.

Many people are not familiar with or recognize Vera, and are a little confused as to why she became the president of the bank.

But people who know her don't seem to be curious or confused about Lynch using her.

Because the key to the position of bank head office president is not how strong the head office president’s business capabilities are, how much savings he can attract for the bank, or what business he can develop for the bank.

The most important thing is that she must be able to reassure shareholders while also having more influence on high-level society.

She has both of these points, or Lynch, who stands behind her and trusts her, has both!