Siheyuan starts from a better life

Chapter 1161 Chartered Bank 2
The flood of credit has done little to revive industry, but has instead caused inflation, which is now so severe that those who oppose Boris have found an excuse to attack Gaidar and Chubais, the two people primarily responsible for the economy.

On the surface, it is criticizing both of them, but in fact it is criticizing Boris.

However, what made them most angry was that these people took the benefits, but let them bear such a big blame for no reason. It would be strange for them to be happy!

However, there are different views on the inflation during this period. After the collapse of the Soviet Union, facing the inflation problem, Russia accepted the "shock therapy" and implemented a double tightening of fiscal and monetary policies, similar to the current interest rate hike in the United States to curb inflation. The result was that the economy became worse, and finally the currency had to be released to save the economy. This caused more vicious inflation. It lasted until 98. The symbol of the final end of inflation was the replacement of the old ruble with the new ruble at 1:1000.

In addition, the government has implemented a series of fiscal and monetary reforms in line with international standards. At the same time, productivity and supply have also rebounded. More importantly, a large amount of external capital and internal dignitaries have jointly suppressed the ruble, allowed inflation to spread, and then acquired a large number of Soviet-era state-owned enterprises at ultra-low prices.

In short, there are many reasons for their inflation.

The only thing Jiang Yan understood was that the entire Russia was now a piece of fat meat. Not only Europe and the United States, but also countries like Japan wanted to have a bite. Jiang Yan also wanted to have a bite. If he had a bite, he could save many years of hard work. It was too tempting.

"Now you are ready to start the banking plan." Jiang Yan asked solemnly.

It is necessary to be serious. As long as Russia opens the bank's franchise, it means that Russia's inexhaustible treasure house will truly open up before him, and Russia's entire wealth will be at his disposal!
"I think we can't wait any longer. If we wait any longer, it will be too late. If we don't open it now, I feel that the entire Russian economy will be destroyed by them."

"Yes, that's what we think after discussion," Gaidar said.

Hearing this, Jiang Yan couldn't help but narrow his eyes, and endless joy surged in his heart. Once the bank's franchise plan was launched, it would mean that Jiang Yan would officially participate in the director's feast.

The Central Bank of Russia is a little different from domestic banks. Domestic central banks are mainly responsible for printing money, adjusting risks, and modifying policies and regulations. In other words, the central bank is actually a bank that manages banks. The specific business is undertaken by the four major banks: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank.

Strictly speaking, there was no such thing as a bank during the Mao Bear era. On October 1921, 10, the All-Russian Central Executive Committee (VTsIK) passed a resolution to establish the State Bank of the Russian Soviet Federative Socialist Republic. Subsequently, Sovnarkom passed a similar resolution on October 3, 1921. It began operations on November 10, 10. In February 1921, Lenin described the State Bank as a "bureaucratic paper game" and in a letter to Allen compared it to Sheinman, who he accused of "communism-mandarin childishness" in Potemkin Village. It was transformed into the State Bank of the Soviet Union in 11.
It was placed under the jurisdiction of Narkomfin. The Soviet government used Gosbank primarily as a tool to exert centralized control over entire industries, using bank balances and transaction histories to monitor the activities of individual concerns and their compliance with five-year plans and directives. Gosbank did not act as a commercial bank in terms of profit motives. In theory, it served as a tool of government policy. Rather than independently and impartially assessing the creditworthiness of borrowers, Gosbank would provide loan funds to favored individuals, groups, and industries in accordance with the instructions of the central government.

The real reason why they became banks was because of Gorbachev's reform plan. He established "Promstroybank" (Soviet Industrial Construction Bank), "Zhilstoybank" (Soviet Housing Construction Bank), "Agrobank" (Soviet Agricultural Bank), "Vneshekonombank" (Soviet Domestic Trade Bank) and "Sberbank" (Soviet Savings Bank) modeled after the West. "Sberbank" is still one of the largest banks in Russia, retaining senior personnel of the former Gosbank and most of the banking business of the current Russian government.

However, even after these banks were established, their missions and structures were unclear. From the beginning, the banks in Russia were in chaos. In their original plan, they were going to reorganize the state-owned banks according to Western standards, but before they could start, this situation occurred.

Their second plan is to use some private banks to give them franchises and let them replace part of the original central bank's intelligence. Once the financial market stabilizes, they will cancel these privileges.

The specific operation is that the Russian Central Bank will distribute a large amount of money to franchised private banks at a lower interest rate every year. The private banks can then lend the money to companies in need of funds at a higher interest rate, and the private banks can earn the difference in the middle.

It is said to be so difficult, but in the final analysis, it can be summed up in one sentence: you can make ends meet by patching together what you eat, which means that you are doing a business with no capital investment, and it is a very profitable business.

What Jiang Yan was actually interested in was not this money, but other money, because the franchise bank also had the task of accepting funds from government departments for deposit. For example, based on the relationship between Jiang Yan and Luzhkov and others, the taxes collected by the entire Moscow government and the funds from the sale of enterprises would definitely be placed in Jiang Yan's Hang Seng Bank.

Jiang Yan could have loaned out this money. Even if he couldn't, according to later records, with the ruble depreciating at this rate, he could still make a lot of money. In short, after Jiang Yan's Hang Seng Bank obtained the franchise, it was basically equivalent to the Industrial and Commercial Bank of China in China.

"The chartered bank plan has really reached the point where it must be implemented. Now business owners need a lot of funds to revitalize their businesses, including purchasing raw materials, updating equipment, paying wages to employees and business turnover, as well as disbursing state grants to remote areas, etc. These businesses must be implemented by banks."

"Finance is the blood of a country. If the blood of a country is not circulating, then the country will die. Russia is lacking too much blood now, even to the point of terminal necrosis. I believe you are also aware of what is happening in various places."

Hearing them say this, Jiang Yan nodded slightly with a serious expression. Now it has been several months since Boris became the president of Russia, and the whole of Russia is still in chaos. Now Boris's decrees are basically only effective in the area around Moscow. In some remote areas, people just follow orders and not announcements.

"How many banks do you two plan to issue franchise certificates to?" Jiang Yan asked.

"The first batch will be at least ten banks. After all, the more participants there are, the more intense the competition between banks will be, and the lower the loan interest that companies can get from banks." Gaidar said.

(End of this chapter)