Rebirth 79: I opened a bank in the United States

Chapter 305 Involvement in the Bank

"How about the situation over there, mainly the small town of Plains, the location is too special! Sandwiched between Columbus and Albany. To be honest, it was purely driven to death by high interest rates on deposits."

"Columbus and Albany both have garrison bases, and the soldiers usually have to go through their channels for settlement of wages. Every year, there is a lot of income from settlement fees alone."

"Since this is the case, they are fully capable of annexing, so why are they looking for us?"

Carter said bewilderedly.Objectively speaking, the pressure on the bank that took over Plains is actually not that great
Seeing that the expressway project will start soon, whether it will be jobs or funds flowing into the local market.It is not a big problem to revitalize a savings bank in a small town.Just where it is.

On the one hand, being too close to the two big cities in Zuozhou means that its local competition pressure is greater.Banks in Columbus and Albany enjoyed the dividends of the garrison bases, and almost guaranteed their income in droughts and floods.In addition, in larger cities, there are not only one or two savings banks.

The combination of these two points immediately led to a serious involution problem!

A higher lower limit threshold can give them the confidence to offer higher deposit interest rates to attract deposits from depositors, and at the same time, competitors within the city will intensify the competition between them!
All in one city, if a bank's deposit interest rate is thriving.For local citizens, the time cost of transferring deposits is very small, and the action is also very fast.What's more, the small wallets of tens of thousands of people in the garrison base are also a huge market.This forced these banks to scramble to raise their deposit interest rates almost like chasing each other.
As the saying goes, when gods fight, little ghosts suffer!Plains was the little brat who got hit by Chi Yu in the fight between the bosses.

These bigwigs have the background of garrison settlement business and can call high prices.But what about it? ?What else can I do but be dumbfounded?
Plains, 66 kilometers from Columbus and 55 kilometers from Albany, is sandwiched between the two big guys, which may be fine when the spread is only about 1%.For small deposits, the extra interest income cannot even earn back the gas money.

But when the spread gradually widens to 2%, 3%, or even 4%
Small deposits are hard to say, but large deposits are almost wiped out.It's as if you live in Jiaxing or Suzhou, and suddenly, you hear that the bank deposit interest rate in Shanghai is 4% higher than that in your local area.So you turned on your phone and looked at your 10 yuan deposit, thinking about it quickly.

If I put this money in a bank in Shanghai, I will earn an extra 4000 yuan a year in interest alone.On the other hand, if you drive back and forth to Shanghai, even if the fuel expense is 300, it is actually impossible to be so high.You can still earn an extra 3700 yuan, which is at least half a month's salary income!This is very attractive!

It's just a working class feeling, you have to change to some big boss.With deposits of tens of millions or hundreds of millions, the temptation of this interest rate difference can make people mad with envy.

In this way, if Plains' bank wants to ensure the stability of its own funds, it has to grit its teeth and follow suit.If it does not rise, it will go bankrupt directly, because everyone knows that the deposits of any bank cannot cope with the centralized one-time withdrawal of all depositors.If interest rates are not raised and depositors are not appeased, depositors' withdrawals, that is, repayment of deposit debts, will directly kill the bank.

But the interest rate soared, and the revenue couldn't keep up.I have to be forced to use bank assets, which is the so-called loss of money to fill the gap.The more you fill, the less the proportion of bank assets in total assets will be. If you can't reverse this situation before falling below the warning line, you will end up bankrupt!

Carter knew very well in his heart that Plains was a hot potato.It is useless to solve employment alone!To provide jobs can only be said to keep the activity of the market from falling!Let the circulation of money in the market be maintained in a relatively safe range.

In order to ensure the minimum requirements for the operation of banking business!This is just a foundation, and it may be enough in general places. For example, the vicinity of Douglas is basically a small town, and there is no stable local boss customer, forcing the balance to be broken.Therefore, the overall interest rate fluctuations in the surrounding areas are relatively stable.

There is a difference in interest rates, but everyone knows it in their hearts, and they know how much they have!Generally, they will not raise the deposit interest rate to a super high level. After all, once they do this, they may have to kill themselves before they hang up!
But in Plains, that's not enough!
To take over Plains' bank, you must also ensure that the bank can survive in your own hands and truly complete the expansion.Either spend money hard, forcefully absorb the losses caused by this unfair competition, and continuously inject capital into the bank to ensure that the proportion of risky assets does not decrease to the point of being forced to go bankrupt.

Or, you have to consider starting from the loan demand.The reason why Plains Bank went bankrupt was that the local demand for loans was not high, that is, the imbalance between supply and demand.More deposits taken by banks means more supply, and less demand for loans means less demand.
From the general business logic model, the business of a bank is no different from that of a general factory.
As for another concern, it is that Carter has never thought about expanding westward at all for the time being!There are many big cities over there, and the competition is fierce, so it is not his first choice for Ka Lao Liu.How good is it to go south? !
The cities are small in size and the competition is not fierce.It is very suitable for the development of the old sixth jungler like myself, and can develop peacefully, why just jump to the airport steel gun?

"They just look good on the surface. Last year, the average annual interest rate of bank deposits in the United States was about 13.35%. However, the annual interest rate of several banks in Columbia and Albany had already exceeded 15% last year. Now it is even more exaggerated. It is almost Breaking through 17%."

Goodman shook his head and sighed, the last thing he wanted to see was still coming.
Whether it is historical experience or the current situation, they have been reminded time and time again: human nature cannot stand the test, and it is also the most unreliable thing!

"But do you know what their loan interest rate is? 11.8%. I'm afraid that others won't come to borrow money."

"This gap can't be filled by revenue from the settlement business alone. After all, paying soldiers wages, this kind of large-scale regular fund settlement business, they can get it, and they all have negotiated prices. If they don't give preferential prices, they won't Can’t get the order from the Ministry of Defense? Looking at the competition law, this agreement price may be lower than you and I imagine.”

"In other words, they are actually holding on. It's all internal friction. Internal friction is already serious. Who wants to add another burden to themselves at this time before the winner is decided?"

"And this problem does not only exist with them, but also with us here. The loans of the HT special plan have been disbursed, and now they are basically consumed by housing loans."

(End of this chapter)