blackstone code

Chapter 1679 Bank Business

Small banks have small bank troubles.

Big banks have big bank worries.

vary.

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 meet the requirements of the industry rules, they can easily set foot in any industry.

In the federation, there is only an access system, and there is no real access control. It is not said that any enterprise has completed the access standards, and there are still people who prevent it from entering this 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 comes from different countries.

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

In the end, they all came here.

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

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

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

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

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

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

For example, the seven major federal banks, due to their large size, the Financial Supervisory Committee will give them a higher level of security.

These seven banks can take out 70.00% of the deposits in the bank for commercial investment and financial operations.

In many financial fields, these seven banks can be either investors or market makers when necessary, and the risks are relatively small.

So they only need a small amount of 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 their savings are not too large, and they do not have dominance in the financial market.

Letting this kind of private bank use 70.00% of their savings for financial investment is a crime for depositors!

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 depositors' savings!

You know, private banks are the same as some private equity foundations in plain terms, they just take out the money of their clients for financial investment.

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 Regulatory Commission is relatively strict in the risk control of private banks.

In order to avoid the occurrence of incidents in which private banks go bankrupt due to wrong investment decisions.

Basically, the minimum guarantee deposit of private banks must be more than 70.00% of the total savings, which is exactly the opposite of the seven major banks.

That is to say, for every 100 yuan a depositor saves in a private bank, the owner of the private bank can only take out 30 yuan of it for investment and business activities.

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

Therefore, many private banks are actually operating illegally, and they take out depositors' money in excess for commercial investment.

Sometimes some depositors need money, or some contracts have expired, etc. In short, when they need a lot of cash, they have no 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.

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

Most of the time, they don't want to borrow for a long time, they just have to deal with the inspection of the Financial Supervisory Commission, or to pay for the contract when the contract ends.

This is often three to five days, and at most one or two weeks.

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

For example, the interest rate for dismantling 100 million federal soles a day is sometimes as high as [-]% of a click, which is a higher interest rate than usury!
But everyone generally recognizes 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.

From the official appearance of Blackstone Bank in front of people, until now, the main business and profits are still in these small and medium-sized banks.

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

Investing in any enterprise or field will always be saturated.

For example, an enterprise may need a large amount of capital in the early stage of development, but this "large amount" is actually only a part of the actual figure.

It cannot be infinite.

But in the field of lending by banks and financial institutions, how much money there is can be eaten.

Even 100 billion is fine!

"... As for the storage issue, it will be included in the agenda after the construction of our branches in various regions is completed."

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

"Although some fast-paced borrowing and lending can bring us considerable benefits, we should consider setting up more investment departments."

"Let us realize multi-layer, multi-diversity and multi-selection in investment business and profitable business..."

On the board of directors of Blackstone Bank, Lynch made requirements for the company's future development.

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

They are willing to join, and 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 bought a one-dollar stock from Lynch, they would also invest ten yuan, two thirty yuan, or even one hundred yuan in the bank as capital increase!

In other words, every time Lynch sells 1 yuan of shares, the total assets of Blackstone Bank will increase by ten times, dozens of times or even hundreds of times the assets of 1 yuan!

This kind of investment that obviously loses money looks like no one will invest, but in fact the opposite is true.

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

At present, the shareholding structure of Blackstone Bank has undergone tremendous changes. Lynch has reduced its holdings to 30.00% and 40.00%, and the remaining about [-]% will be traded as non-tradable shares to other shareholders.

Some of them, about 15.00%, have exchanged stocks with the six major banks in the form of cross-shareholding.

Of the remaining shares, 20.00% will be issued and listed as tradable shares, and the rest will be used as incentive options for partners.

Lynch will always be the largest shareholder of the bank, and he now holds the power of veto, because in the bank, even if everyone's rights are concentrated, it may reach 60.00% [-], and they will not be able to Lynch, who holds more than a third of the rights, initiated the decisive resolution.

On the contrary, Lynch was able to veto all their decisions with one vote.

People, always learn to protect themselves.

Since the establishment of the bank, the first big order has been an international loan of over one billion. Gafla borrowed one billion from Blackstone Bank and more than 50 billion from other banks. A total of 60 billion in loans was used to purchase various Technical and military equipment.

Among them, the aircraft is a large part.

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

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

Gafra and Penteo spent a large number of national aircraft in the air battle over Ameria.

With the industrial production capacity of Gefraben Island, the speed of their production of aircraft obviously cannot keep up with their consumption on the front line, plus various other military equipment.

They have no choice but to buy.

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

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

Lynch doesn't care whether other people make money or take risks. 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 Lynch decided to promote it to go public after discussing it with the board of directors!

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

Relying solely on lending between banks and financial institutions will not last long.

The main project should still be in storage and investment...

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

Many people are not familiar with Vera, and they don't know her, and they are a little confused about why she can become the president of the bank.

But those who knew her didn't seem to have any curiosity or doubts about Lynch using her.

Because the key to the position of the head office president is not how strong the head office ability is, how much savings he can collect for the bank, or what business he can develop for the bank.

The most important thing is that while she can reassure shareholders, she should also have more influence on high-level society.

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

(End of this chapter)