Beiyang reactionaries

Far from being able to compete with ordinary private banks.Banks including the Jiangsu-Zhejiang Consortium do not have the strength to compete with the government's banks.

What's more, Duan Xun secretly supported the development of Southwest Bank's power, allowing them to compete against the Jiangsu and Zhejiang consortium in Shanghai.Although it is not yet the opponent of the Jiangsu-Zhejiang Consortium in terms of strength, it has already greatly weakened the strength of the Jiangsu-Zhejiang Consortium.

Therefore, although they are very powerful, they have absolutely no power to influence government decision-making.

Resistance is different.

"But this needs to be done step by step. Give those banks a chance to react. If you cut it across the board, the impact will be too great."

Duan Xun's purpose is not to let those banks die, nor is it to run all those private banks.With the competition of some private banks, it is also a good spur for the commercial banks controlled by the government.Therefore, Duan Xun's purpose is only to increase the supervision of banks and bring all banks across the country into the supervision.

"Yes, Prime Minister. Therefore, after our discussion, the idea is to set the bank reserve at [-]% within half a year, so that they can make preparations within half a year. A reserve of [-]% is already very low. , if even this cannot be satisfied, then there is no need for such a bank to continue to exist. Such a bank must forcibly cancel its banking license and transfer its business to other banks. Otherwise, such a bank will be a bomb at some point .”

Zhang Jiaao explained to Duan Xun what he meant.

The first step is relatively easy to do.

As long as it is a healthy bank, it is not a problem to prepare a three percent reserve fund.

Then he said: "After completing the first step, the second step is to increase the bank's reserve fund to 5.00% within the next year, that is, to increase the reserve rate by [-]% again. We calculated carefully and reached [-]% When eight out of ten, the bank's initial ability to resist risks will be established."

"kindness."

Eight percent reserve.

Really good.

Such a general crisis can be overcome.But it is only a general crisis, and some large-scale crises will still be very dangerous.

"The last step is to increase the reserve amount to 15.00% within three years. In this case, as long as the bank does not take risks, as long as it is not a real big crisis, then under normal circumstances, the bank will not appear The problem. In fact, our Bank of China’s opinion is that the reserve ratio of these banks in China can be around 20.00%, of course, the specific situation needs to be subdivided. In this way, many banks will be very safe.”

Duan Xun nodded.

It is necessary to improve the security of banks step by step.

Banks are too involved.

There should be adequate regulation.

Duan Xun appreciated Zhang Jiaao's suggestion very much.If China can complete the supervision of banks within a few years, then China's banking system will be very healthy in the world.

Zhang Jiaao is very good as the president of the Bank of China.

Before European countries had such regulations, Zhang Jiaao already had such an idea, which really made Duan Xun very satisfied.

"Moreover, Prime Minister, we require these banks to put their reserves in the Bank of China, so that these reserves can be used in times of crisis. Therefore, it is impossible for the banks to use these reserves in a short period of time. As a result, Bank of China will There are funds that large banks do not normally use. These funds can give Bank of China a lot of support for other investments.”

Yes.

According to the reserve fund system, you must deposit the money in the Bank of China, and the Bank of China can certainly use the money cautiously.But this is also a risk. Bank of China must have rules on how to use the funds.

If the government is allowed to use the money at will, if there is a problem, if the Bank of China cannot pay the money, then it will be the Bank of China that will go bankrupt, and the bankrupt will be the credit of the Chinese government.

"The bank reserve system is indeed very good, and your idea is very good."

Duan Xun praised Zhang Jiaao.Then he said: "Reserves and bank interest rates are very good things, and they are also very beneficial things in future economic control. When we absorb deposits, we can increase bank deposit interest rates. When the Chinese economy needs funds, especially many industries lack When it comes to funds, the reserve ratio can be appropriately lowered to release enough funds from the bank to support economic development. However, once the economy is overheated, especially when financial speculation increases, the reserve ratio can be appropriately raised. Reduce the supply of bank money. Put the brakes on the economy.”

Zhang Jiaao listened carefully to what Duan Xun said about bank reserves and bank interest rates.

Very unexpected.

Regarding the issue of bank reserves, the experts of the Bank of China headed by Zhang Jiaao, all of whom are high-achieving students studying finance in Europe and the United States, came up with it after a long time of investigation and deliberation.

They studied all the banking regulations of European and American countries.

After nearly a year of discussion and research, it was ready to learn from the content of the "Federal Reserve Act" and come up with a plan for China's own bank reserves.This is the hard work of Zhang Jiaao and many other people in the Bank of China.

But look at Duan Xun.

Suddenly, I understood the role of the reserve fund and what to do.

And it can also be said to use reserves and interest rates as economic tools to control economic development.Duan Xun's words made Zhang Jiaao's heart tense, and he immediately listened carefully to these words.

surprise.

Zhang Jiaao was really surprised.

Is Duan Xun really a soldier?

Duan Xun said a lot of things that he didn't think of, including the team of the Bank of China.What they began to think about was how to ensure the safety of the bank and how to increase the bank's ability to resist risks.

I haven't thought about how these things will be used in economic regulation in the future.

But Duan Xun has already considered these aspects.

So he listened very carefully to what Duan Xun said.I am going to take Duan Xun's words back, and everyone will discuss it carefully.After talking for a while, Duan Xun said to Zhang Jiaao: "These are just some of my thoughts, and you don't think he is all right. After all, you are professionals in this area. In the future, your Bank of China's tasks will become more and more important. It is important, so every step must be carefully considered. Any decision you make will affect the stability and development of China's economy."

"Yes."

Zhang Jiaao nodded.

Whether Zhang Jiaao or other cabinet chiefs, this is the place I like Duan Xun the most.Although Duan Xun will raise some opinions, he will never directly interfere with their work, nor will he directly give orders to these departments.

Duan Xundu just put forward some opinions, so that all departments can give full play to their strengths.

"Prime Minister, but what about foreign banks?"

Zhang Jiaao asked the most core question.

When Duan Xun was still in the southwest, Duan Xun needed to win over the Jiangsu-Zhejiang Consortium, and there were many places to rely on.But as Duan Xun has been operating in Beijing for these years, Duan Xun's strength has become more and more inflated.

This is inevitable.

China is a big country. As long as there is a strong government, the expansion of government power is inevitable.This is especially true for China's political system.Relying on the advantages of the government, such as China Bank of Communications and China Commercial Bank, the speed of development is far beyond that of private banks.

why?

The banks of the Jiangsu-Zhejiang Consortium did not rely on real private funds, but on the development of business models.More rely on the government's business.In particular, it undertakes a large amount of local tax money to develop greatly.

But now these government businesses have been transferred to Bank of Communications and Commercial Bank.When Bank of China integrates Bank of Tianjin and Northern Bank to become the Savings Bank of China, and let several government-controlled commercial banks swallow up those local banks, the strength of these government-controlled commercial banks will be far from what private banks can compare.

Therefore, Zhang Jiaao is not very worried about those private banks.

Zhang Jiaao is more worried about foreign banks.

"As long as you do business in China, you must abide by Chinese laws."

Duan Xun is sure.