April 15, 4359 (1662 AD).

Representatives of major banks in Beijing gathered in the Imperial Bank conference room.

Every half month at the Imperial Bank, they will convene representatives from major banks for a short meeting.

This meeting is usually for the Imperial Bank to convey His Majesty's instructions and new regulations on the banking industry.

Representatives from major banks will also exchange information on the banking industry.

They can also communicate directly with the supervisory office, Imperial Royal Bank, through this meeting.

Today's banking industry meeting has turned into a grievance meeting.

The representative of Jinshang Bank first complained: "We have worked hard to support the growth of those small businessmen.

Once they succeed, they will not say anything in return to Jinshang Bank.

They also transferred the funds in the bank to the Imperial Bank account.

Imperial Bank is strict about money review, and some scenarios where the reconciliation period is not high are fine.

In a shopping mall with a high-frequency trading environment, Imperial Bank’s response speed is indeed not as fast as ours at Jinshang Bank.”

Representatives of Jinshang Bank directly exposed the shortcomings of Imperial Bank on this occasion.

He knew it wasn't a good idea to do this, but he had no choice but to do so.

The representatives of Jinshang Bank saw what he said and were recognized by most of the bank representatives.

He had anticipated this situation, and the economic crisis had not yet completely arrived.

But businessmen with a keen sense of smell have already foreseen the coming crisis.

They transferred their money stored in other banks to the Imperial Bank, which they thought was safe.

Depending on the reputation of the bank, the amount of losses varies greatly.

The representative of Jinshang Bank is so anxious because Jinshang Bank has lost a large amount of deposits.

Only when banks absorb deposits from depositors can they convert the deposits into loans and lend money to companies.

The interest rate difference between deposits and loans is the profit earned by the bank.

A representative of Tianjin Bank mocked: "A completely private bank like you is too bold to do things.

The problems encountered by Jinshang Bank are no secret in the banking industry.

Your loan review standards are too low, and a large amount of money has been loaned out and cannot be recovered.

Depositors thought that your Jinshang Bank was at risk of bankruptcy, and they immediately chose to withdraw their deposits.

A public-private bank like ours will not do things so radically.

A large part of the assets are purchased from treasury bonds and government bonds, which have strong repayment capabilities.

But if there is a run crisis, our Tianjin Bank will not be able to withstand it.

No one in our bank can blame anyone else. If any bank encounters a run crisis, it will not be able to survive it.

This meeting must be led by the Imperial Bank to study how to deal with the run crisis."

Zhang Kuoling, President of Imperial Bank, was walking into the conference room at this time.

Hearing this question, he quickly waved his hands and said: "If our Imperial Bank encounters a run crisis, it will be a huge headache.

We have conducted simulation experiments and found that the run crisis is nationwide, so other than lying down and waiting to die, the only way is to ask the court to take action.

If it is a local run crisis, it is still possible to get over it.

Immediately transfer silver coins from banks in other areas to show the people that their bank has sufficient principal.

People tend to do things blindly. They see that banks have enough money, so they will not continue to run on them.

The interest on bank fixed deposits is a considerable amount of wealth for many people."

President Zhang Kuoling looked unhappy when he saw many bank representatives.

Except for a few banks such as Imperial Bank.

Most commercial banks cannot meet the requirements.

Commercial banks pursue profits and have a few silver coins in their hands. They want to let them borrow more loans.

They never leave too much reserve.

This is the short-sightedness caused by businessmen's pursuit of high profits.

It is precisely this kind of behavior that only pursues short-term interests that has caused many commercial banks to fail to survive this economic crisis.

The imperial court was prepared for the bankruptcy of a large number of commercial banks.

All the preparations made by President Zhang Kuoling were to isolate risks between commercial banks and Imperial Bank.

Whatever changes occur in commercial banks will not affect Imperial Bank.

Now this matter has been done very effectively.

President Zhang Kuoling acted more calmly about the current situation.

He quickly walked to the head seat of the conference table.

President Zhang Kuoling knocked on the table and said in a cold voice: "The method I just mentioned is already what the imperial court can do.

Similar to deposit reserves, each bank prepares emergency reserves.

Our Imperial Bank only supervises this matter, and we will set up a banking association to be responsible for the specific matters.

Once there is a run crisis on a bank, the emergency reserve will be based on the bank's assets and lend silver coins equivalent to the value.

Once the bank gets through the crisis, it can repay the money in batches.

If the bank cannot survive this crisis, the Banking Association can take over the assets of the bankrupt bank and conduct an internal auction."

Representatives of the major banks sighed helplessly when they heard the Imperial Bank's approach, but they all chose to join the newly established association, the Banking Association.

Small banks are willing to join, but their risk resistance is very low.

Now that there are banking associations, their ability to resist risks is almost the same as that of large banks.

Large banks are also willing to join. After the Banking Association is established, many high-quality resources of bankrupt banks will be controlled by the Banking Association.

Banks that do not join the banking association do not even have access to these high-quality resources.

President Zhang Kuoling facilitated the establishment of the Banking Association, and his work today has been completed.

Representatives of major banks saw that Imperial Bank no longer controlled the meeting.

They spoke one after another and made their requests.

The question with the most feedback is the problem of transferring deposits from major banks to Imperial Bank?

Zhang Kuoling has absolutely no room for negotiation on this issue.

He said in a sharp tone: "People have the freedom to deposit money in whichever bank they want.

Major banks are not allowed to prevent people from withdrawing money.

You have to win the trust of the people through service, not deception."

This chapter is not finished yet, please click on the next page to continue reading the exciting content! Representatives of major banks saw Imperial Bank’s firm attitude and knew that this matter was non-negotiable.

Representatives of major banks have reached a consensus on this issue.

Because their situations are different, they have different demands.

Each type of bank makes claims in their favor.

There is absolutely no consensus among the major banks.

At the end of this meeting, no consensus was reached except for the establishment of a banking association.

Representatives of Jinshang Bank at the end of the meeting.

He asked Zhang Kuoling with some anxiety: "Sir Zhang, the court has made up its mind to bankrupt the bank. Is there any room for maneuver in this matter?"

Zhang Kuoling slapped the table and said: "There is no room for maneuver, the bank is insolvent, and there is absolutely no value in saving it.

We cannot allow Imperial Bank to provide help to these banks with negative equity.

Doing so will have no effect other than bankrupting the Imperial Bank."

Representatives from major banks heard President Zhang Kuoling’s firm words.

They all know that the bank's toughest time is coming.

Especially debt-ridden banks, they can't think of how to save themselves, and their hearts are filled with despair.

…

At the headquarters of Jinshang Bank, President Qiao Wenkai heard the reports from his subordinates.

He immediately lit a cigarette and took the exam while smoking.

Most of the shareholders of Jinshang Bank are Shanxi merchants.
To be continued...