Rebirth 79: I opened a bank in the United States

Chapter 382 The U.S. Banking Industry With Intensified Involution
"Don't worry! Don't worry! Goodman, I've considered these situations. If it's just the current investment and debt, I think I can still handle it."

"The construction of the SR-166 highway has started, and the DOG construction company has also made progress, as well as residential real estate. What phase is it now?"

"After the third phase starts, the construction period will also increase. It will take at least half a year for this batch of houses to be completed."

Goodman snorted a little sullenly.When he said that the debt was huge, he could not deny the fact that the current income has increased.

After the third phase of the residential project is completed, the direct sales profit will be 224 million US dollars, although this money will be used for the preparation of the fourth phase of the project.But the flow of loans.
Now just the first two phases of the project have already increased the loan principal by 138 million.By the end of the year, the interest income is 16; the annual interest income of the special loan of the HT plan is about 5 million; plus the rest of the customer loan income.
If you don't consider inflation and only look at book profits, compared to the previous two million loan scale.The profitability of banks in lending business has nearly doubled.

"By the way, there is a situation that I need to report to you. During this period of time, especially after the construction of the SR-166 highway, new outsiders have come. Even though our deposit interest rate is relatively low, Xinna The total amount of savings in China is growing slowly, and the number of new savings accounts and checking accounts has increased significantly in the past two months."

"The other issue is the ATS account. It was okay at the beginning of this year. As a newly launched account type, customers were a little nervous, but now that half a year has passed, the advantages of this automatic transfer account have become obvious. On the bank side, the ATS account The number of openings is increasing rapidly. Now there are hundreds of ATS accounts added every day. When you arrive in Douglas, you can go to the bank to have a look.”

"There are long queues every day. At this rate, it is estimated that by the end of October at the latest, all accounts in our bank will be connected to ATS accounts, and the interest payment will be a big expense at that time! You have to be mentally Prepare"

"There is also a new type of account: NOW account. I heard rumors recently that it should be fully introduced to the market soon, and there is also tax rate reform"

"It's okay, our deposit interest rate is set relatively low. The expenditure in this area is always less than that of our peers."

Looking at the familiar street scene outside the car window, Carter stretched lazily on the passenger seat.

After hearing Goodman's impatient report, Carter realized that the troubles that required him to make up his mind had increased again!
Regarding the issue of ATS accounts, in fact, it was explained in last year's Banking Law.Compared with the traditional three types of accounts: the checking account does not pay interest; the short-term deposit account pays a small amount of interest, but the bank must be notified in advance for withdrawal; the fixed deposit account will pay relatively high interest, but before the contract expires, the customer will No right to withdraw money.

ATS, the function of the automatic transfer account is to allow the funds in the customer's short-term deposit account to flow between the account and the checking account.When money is needed, the funds in the short-term deposit account are automatically transferred to the checking account to complete the payment; when money is not needed, for example, after the funds in the checking account have been idle for a certain period of time, they are automatically transferred to the short-term deposit account to accumulate interest.

To use a more appropriate description to describe the ATS account, it is the current demand deposit account in the future in China!You can spend it at any time, and you can also earn interest!
There is no doubt that this kind of account is attractive to depositors, and it is not an exaggeration to say that it is the most mainstream deposit type for depositors.Therefore, Carter predicted the increase in the number of ATS account openings.but.
"What is this NOW account? There is also tax rate reform. Is it a tax increase or a tax reduction? It should be a tax reduction. It has been two years since 79 and the economy has not improved. At this time, tax increases may cause trouble! By the way, have the demonstrators at the gate of the Federal Reserve withdrawn? They won’t still be blocking Volcker’s gate, right?”

"Let me tell you one by one. Let me talk about the NOW account first. This account is actually not a new account. Ten years ago, a mutual savings bank in Massachusetts came up with this thing. The full name is Negotiable Order of Withdrawal, transferable payment Command account. But I prefer to call it an interest-paying checking account!"

"This is a side-scrolling thing, and it is also a payment behavior. It is nothing more than changing the name of the original check payment, what is called a payment order, that is, the check written by the customer is no longer called a check, it is called a payment order. After the bank receives the customer's payment order, it ignores the time limit of the short-term deposit account and expedites the payment settlement for this account first, or mobilizes the funds in the customer's account for payment, or simply advances with bank funds first. Anyway, it is very short-term. The processing time is unlimited to achieve payment functions similar to checking accounts.”

"That is to say, the NOW account is a variant of a short-term deposit account on the surface, but it actually shows the function of a checking account, but this account allows depositors to eat deposit interest. This kind of crude Naturally, this method cannot be concealed from others. Originally, this kind of account was opened illegally. So it was only a small area in Massachusetts and its neighboring New Hampshire. Some cunning banks secretly practiced this trick to absorb deposits and strengthen themselves competitiveness”

While driving, Goodman recalled the materials he had read, and introduced to Carter with a smile:

"This kind of show operation of individual banks is naturally hated by some local competitors, so they were sued. The first NOW account to obtain legality appeared in New Hampshire. In 72, the local state court ruled that the account was illegal in the state. Legitimacy. And so the NOW account, it started to flourish in New Hampshire, and then Massachusetts.”

"Until last year, this account was a local account. Except for the legal account in these two states, it is illegal to go to other states. But last year's 80 law confirmed it nationwide. The legitimacy of the account. As a supplementary type of ATS account, the NOW account has also begun to go south”

"Anyway, it doesn't matter whether it's a NOW account or an ATS account. The lords of the Federal Reserve are now trying to find ways to raise gu, and desperately increase the vicious competition in the market to reduce the currency circulation in the market. This started last year, and now Telling you this is nothing more than to tell you that their actions have intensified and deepened, and you have to pay attention to the risks from external policies and pay attention to leaving yourself some room for turnover.”

"Honestly, I kind of admire you now, Carter! Your sober mind makes me feel terrible! In the second half of last year, and in the first half of this year. When Georgia's peers raised interest rates like crazy, you would rather reduce reserves, or even simply Abandoning the storage function of Droste Bank and avoiding us being involved in this vicious circle of competition, now it seems that you are really doing the right thing!"

"If they really use their high interest rates on deposits, judging from the current momentum, in the past two years, even if we don't die, we will have to peel off the skin!"

(End of this chapter)