Rebirth is very troublesome

Chapter 839 The perfect ending of 09 ([-])
After hearing Song Qing's words, Wang Yu was thoughtful.

Cai Jingheng has the ability to pose such risks to Yonghua Bank in Southeast Asia.

Of course, this is just one of the means. If Yonghua responds in an orderly manner and has sufficient funds, it can still be resolved.

"You keep talking."

How to deal with it will be discussed after Bai Jieru arrives. Wang Yu skipped this point and let Song Qing continue.

"The next step is market risk, which is divided into several types."

Song Qing is helping Wang Yu with a financial knowledge class this time. She has done this kind of thing before. She is quite proficient and knows what kind of language to use to describe it to Wang Yu in as simple and profound a way as possible, and to make him understand. .

"Liquidity risk is one of the market risks. Generally speaking, although commercial banks have solvency, they are unable to obtain sufficient funds in a timely manner, or are unable to obtain sufficient funds in a timely manner at a reasonable cost. Then it will be difficult to cope with asset growth or payment maturity. The risk of debt.”

After Song Qing finished talking about the professional terms, he began to explain in plain language: "Suppose a bank has a certain amount of capital and a certain amount of debt. These assets and debts are constantly converting and changing. Only in this way can it Earn more profits during operations and be able to meet various maturing debts in a timely manner. This conversion and change is "liquidity". If liquidity is poor, for example, it will invest a lot of capital in long-term loans or other long-term Investment will strand a lot of capital, which will cause difficulties in repaying maturing debts. If you are unable to pay back debts, you can only rely on high-interest financing to repay debts, resulting in negative growth of capital, which is liquidity risk."

After listening to this explanation, Wang Yu finally understood, but he looked at Song Qing doubtfully: "Isn't this also a long-term systemic risk?"

"Yes and no, there is another risk involved."

Song Qing said to Wang Yu seriously: "Operational risks!"

"Operational risk?"

"Yes, bank insiders made unintentional or intentional operational errors during this process, which led to an increase in liquidity risks that did not exist before, or even an outbreak!"

Looking at Wang Yu's seemingly disbelieving eyes, Song Qing emphasized: "This is not intentional to magnify the harm. There are examples. The collapse of Barings Bank in 1995 was a typical operational risk that caused an outbreak of systemic risks. The result was the collapse of Barings Bank." collapse."

"Is there such a thing?"

Wang Yu was very curious: "A bank insider made a mistake and caused a bank to collapse. Why does it sound so mysterious?"

"Bahrain Bank is an old British aristocratic bank with a distinguished history. Within the bank there is a guy named Nick Leeson, who is known as a "genius trader" in the international financial community. He was the general manager and chief executive officer of Bahrain Futures Company in Singapore. A trader known for his stability and boldness. In the Nikkei 225 futures contract market, he is known as the "Invincible Leeson".

Seeing Wang Yu's disbelieving look, Song Qing began to tell the story of the cause and effect of the collapse of Barings Bank.

"In the second half of 1994, Li Sen believed that the small economy had begun to emerge from recession and the stock market would have a rising trend, so he bought a large number of Nikkei 225 index futures contracts and call options. However, "man's calculation is not as good as God's calculation," and things went counterproductive. On January 1995, 1, the Great Kansai Earthquake occurred and the stock market plummeted. Leeson's long positions suffered heavy losses, with losses as high as 16 million pounds."

As Song Qing spoke, there was a look of regret on his face: "Although the situation at this time is bad, it is not enough to shake Barings Bank, but it has seriously affected Mr. Li Sen's glorious status. In order to turn defeat into victory, Li Sen Once again, the Nikkei 225 futures contract and interest rate futures contract were covered in large quantities, with the total position reaching more than 225 lots. You must know that this is a futures contract that has been magnified dozens of times with the "leverage effect". When the Nikkei 18500 index fell below 200 points , every time it drops a little, Mr. Li Sen’s position will lose more than [-] million US dollars!”

"Things tend to go in the worst direction." This is the summary of the strong theory.

When he heard this, Wang Yu probably knew the result. Li Sen would definitely be more unlucky later.

Sure enough, Song Qing's next words confirmed this result.

"On February 2, when the Nikkei Index accelerated its plunge again, the position losses of Li Sen's Bahrain Futures Company were close to the sum of the capital and reserves of the entire Bahrain Bank Group. There were no financing channels and the losses were irreversible. Li Sen is absconding in fear of crime!"

Song Qing said at the end, shrugged her shoulders and said: "In this way, Barings Bank was facing destruction, and the bank chairman had to turn to the Bank of England, hoping to save the situation. However, the losses at this time had reached 14 billion US dollars, and subsequently As the Nikkei 225 Index continues to fall, the losses will further expand. Therefore, no one from the financial institutions of all parties dared to help Bahrain, the former distinguished guest, and Bahrain Bank has since collapsed."

Who would have dared to imagine before that a single employee could destroy an old bank in a short period of time?

Wang Yu pondered for a long time after listening to this paragraph, and it was already five or six minutes before he looked at Song Qing again. "You mean that if someone bribes Yonghua's employees in similar positions, it can also cause systemic risks?"

"It depends on how much authority this person has in Yonghua."

Song Qing smiled and said: "Ordinary employees do not have such great authority, unlike Li Sen, who is also the manager of a futures company after all."

Speaking of authority, Wang Yu thought of two people: Luo Qianqian and Huang Mengqi.

According to Song Qing, both of these people have the ability to cause systemic risks to Yonghua Bank.

Whether it will happen or not is another matter.

Next, Song Qing successively explained to Wang Yu the loan-to-deposit ratio risk, high leverage risk, interest rate change risk and other knowledge contents. Of course, some of these contents discussed later are beyond the scope of Cai Jingheng's hands.

For example, if interest rates change, can Cai Jingheng influence the decision-making of the Federal Reserve Bank of America?
The chat between the two didn't end until Bai Jieru arrived with Mi Lai.

"Boss, I'm going to make tea!"

Seeing Bai Jieru enter the office, Song Qing intuitively walked to the tea table in the reception area to make tea.

Wang Yu also stood up and led Bai Jieru towards the sofa.

"Looking at your serious expression, is it really urgent?"

"There will be some trouble over there in Southeast Asia."

Wang Yu nodded, sat on the sofa and lit a cigar. After taking a few puffs, he recounted the contents of the call between Cai Jing'an and him.

"According to this statement, Cai Jingheng wants to use Yonghua to cut off Cai Jingan's external funding channels?"

"I'm afraid so."

Wang Yu nodded depressedly, smacked his lips and said, "Actually, Cai Jingheng can discuss it with us, and I don't have to give Cai Jingan any convenience!"

"Pfft!"

Bai Jieru covered her mouth and smiled: "Master, stop making trouble and find a serious solution."

"You don't seem to be in a hurry?"

Wang Yu glanced at Bai Jieru in surprise: "I just talked with Song Qing and I know some common methods to deal with banks. Some of them are quite difficult to deal with. If you are not careful, you can cause great losses to the bank."

"Master, it's not as scary as you think!"

Bai Jieru said with a smile: "Our Yonghua has some characteristics that are different from regular commercial banks, so if outsiders who don't understand it try to make small moves, they are bound to fail!"

Wang Yu was stunned for a moment, then looked at the little woman opposite and said with a smile: "I would like to hear the details!"

(End of this chapter)