Learn a little bit of finance every day

Chapter 22 Without "Trust" No Establishment: From Qianzhuang Bank to Commercial Bank (2)
However, the status of commercial banks in China is difficult to compare with other financial institutions.If ICBC and Goldman Sachs cooperate to launch a new fund, the management level and asset size will soon surpass the existing fund companies.Since the outbreak of the subprime mortgage crisis, China's economic situation is the best and most stable in the world, but the performance of the Chinese stock market is obviously not in line with this. The reasons are complex, but it has nothing to do with the level of Chinese fund managers.Many senior account managers engaged in personal financial management in China's commercial banks have received CFP, RFP or CFA training, have more than ten years of work experience, and are familiar with China's economy and enterprises.If China's commercial banks reach in-depth cooperation with Goldman Sachs or Merrill Lynch, they will soon be able to cultivate a large number of high-quality and high-level asset management talents.The asset scale of ICBC and CCB is already in the forefront of the world, and the market prospect is better than any other bank. The disadvantage is that they put too much emphasis on the loan business. If they can cooperate with their respective strategic shareholders Goldman Sachs and Merrill Lynch to accelerate the development of asset management business, within a few years It is possible to become a truly top-notch bank holding company in China.Facts have proved that the bank holding company model of Bank of America is more viable than Citigroup's financial supermarket model and Europe's universal bank model.This shows that what China's commercial banks urgently need is a team of asset management talents with roles similar to "bankers".

Bank asset management mainly refers to the sum of the basic principles, standards, organizational methods and management methods involved in the bank's handling of various economic relationships in credit fund operations and the establishment of a sound operating mechanism.It is also called bank loan management or bank fund utilization management.

Bank asset management must simultaneously ensure the highest rate of return on loans and securities, reduce risk, and provide sufficient liquidity by holding liquid assets.A bank is also an enterprise, and its ultimate goal is to maximize profits.

The content of bank asset management involves a wide range, mainly including the adjustment of bank asset structure, the setting of loan types, the determination of loan principles, the choice of loan and investment methods, the formulation of loan interest rates, the evaluation of assets, the disposal of asset risks, the principal And the recovery of interest, the preparation and implementation of plans for loans and investments, etc.Before 1979, China's banking asset business was relatively simple, mainly including various loans and gold foreign exchange reserves.

Asset management is mainly loan management, which includes two levels: the comprehensive balance management of bank credit and financial funds, enterprise funds, and the bank's own asset business management.

There are three basic ways to realize asset management:
1. It is to win over borrowers who are willing to pay high interest rates but cannot default on their loans.Generally speaking, the lending policy of the bank is relatively conservative, and the default rate is usually controlled within 1%. It is very important that the bank should not be too conservative, because this will lose the loan that can earn high interest rates. Chance.

2. Banks should buy securities with high returns and low risks, ie investments.In this process, it is necessary to reduce risk through diversified investment.Banks without this awareness will not enjoy diversified benefits. In the 20s, many banks that primarily lent to energy companies and real estate developers suffered heavy losses as energy, real estate, and agricultural prices plummeted.The so-called "don't put all your eggs in one basket" refers to this truth.

3. The liquidity of assets must be ensured to reduce operating costs.Make a trade-off between liquidity needs and the increased yield of only holding less liquid assets such as loans.

Bank Deposits: Appreciating in Stability

Many people of the older generation have the concept of savings, but a large number of "moonlight people" have emerged among the modern young people. They always spend all their salary every month. They don't know that deposits are a very necessary means of financial management. Sometimes It will bring unexpected surprises and opportunities to our work and life.In the Japanese business world, there is a man named Fujita who started his business with deposits.

Fujita's name is almost well known in Japan, he is the owner of all McDonald's fast food restaurants in Japan.But when he was young, he was just a wage earner like many others.But he set his sights on McDonald's in the United States.At that time, McDonald's was a world-renowned fast food chain, and it required at least $75 in cash to obtain a franchise.But Fujita only had $5.

In order to realize his dream of running McDonald's, Fujita decided to take out a loan.

One morning, he knocked on the door of the office of the president of Sumitomo Bank of Japan.Then he sincerely explained his purpose to the president of the bank.The bank president asked him how much cash he had now. "I have $5!" "Do you have a guarantor?" the president asked.Fujita said no.The president said: "Then you go back first, we will discuss your request." The implication is that he politely refused the request.At the last moment, Fujita said with confidence: "I have one last request, can you agree?"

Fujita said, "Can you hear the origin of my $5?"

The president nodded in acquiescence.So Fujita began to say: "You may be wondering, how can I have this deposit at such a young age? Because I have maintained the habit of depositing for several years. No matter what happens, I put one-third of my salary bonus every month. Once deposited in the bank. Whenever I want to consume, I will restrain myself and survive. Because I know that this money is the capital I have accumulated for a career.”

Hearing this, the president couldn't help but be touched by the young man's perseverance and perseverance. He said: "Can you tell me the address of the bank where you deposit? I want to check whether your words are honest." In the next few days , He called the bank where Fujitada deposits, and got a positive answer from the other bank.Putting down the phone, he immediately called Fujita and said sincerely: "We, Sumitomo Bank, unconditionally support your move to operate McDonald's. Please choose a date to go through the loan procedures!"

The president later said to Fujita: "Mr. Fujita, I am twice your age, and my salary is thirty times yours, but my savings is not as much as yours. Young man, you will be very happy." It’s amazing. I won’t misjudge anyone, come on!” With the help of this noble man from the bank, Fujita became a powerful figure in the Japanese business circle.

Unexpectedly, an act of saving sometimes brings such a big opportunity in life.Why do people save money?Because deposits can appreciate in value.

Deposits refer to the funds or currency that the depositor temporarily transfers the right to use to the bank under the condition of retaining ownership.It is the bank's most important source of credit funds.It is also one of the most basic businesses of a bank. If there is no deposit, there will be no loan, and there will be no bank.

From the perspective of generation time, deposits are earlier than banks.In the Tang Dynasty, there appeared cabinets dedicated to receiving and keeping money in China. Depositors could pay money with "stickers" similar to checks or other tokens.In the Middle Ages, money changers that appeared in Europe also accepted deposits from customers, which belonged to the nature of money custody and did not pay interest. This was the germination of foreign bank deposit business.With the emergence of banks and other financial institutions, the deposit business of banks has developed rapidly.

Deposits can be classified in many ways. For example, they can be divided into original deposits and derived deposits according to the method of generation, they can be divided into demand deposits and time deposits according to their maturity, and they can be divided into unit deposits according to different depositors (taking China as an example). and personal deposits.Personal deposits are resident savings deposits, which are the currency deposited in banks by residents.Personal deposit is the most popular deposit method, and everyone has the most contact with it, and their understanding of it is detailed enough, so I won’t explain it here.Let's talk about the relevant information of "unit deposits" in detail.

Unit deposits can be divided into:

1. Corporate deposits.This refers to temporarily idle monetary funds of state-owned enterprises, supply and marketing cooperatives, and collective industrial enterprises due to the inconsistency between sales income and various expenditures. It also includes various special funds that have been withdrawn but not used by enterprises. The most important of which is The fixed assets depreciation fund also includes profit retention.Changes in enterprise deposits depend on the scale of purchases and sales of commodities produced by the enterprise and the state of operation and management.When production or commodity circulation expands, corporate deposits will increase, and vice versa, corporate deposits will decrease; business management will improve and capital turnover will accelerate, corporate deposits will decrease, and vice versa, corporate deposits will increase.The vast majority of corporate deposits are demand deposits, and only a small part are time deposits.

2. Fiscal deposits.The bank acts as the agent of the state treasury, and all financial revenues and expenditures must be handled through the bank (see the state treasury system).Fiscal revenue and expenditure are often inconsistent in time. In the case of income first and expenditure later, temporarily unused funds form financial deposits.

3. Capital construction deposits are deposits formed by funds used for capital construction but not yet spent

4. Deposits of institutions, groups and troops.It is the deposit formed by the unused funds collected by the above-mentioned units from the financial centralization.

5. Rural deposits.Collective agriculture, township enterprises and rural credit cooperatives have bank deposits, of which rural credit cooperatives account for more than 90%.

With the continuous improvement and development of bank deposit business, new types of deposits are emerging in the world, such as negotiable large-amount time deposit certificates, negotiable payment order accounts, telephone transfer services and automatic transfer services, money market deposit accounts, etc., among which Negotiable large-amount time deposit certificates have also developed to a certain extent in China.

Loans: Stimulating Investment and Consumption

Unlike Fujita in Japan, Axon, the rich man in the United States, started his business with loans.

In 1960, the 28-year-old Akerson was still working in his own law firm in New York.Facing so many millionaires, Axon couldn't help feeling dissatisfied with his poor situation.He was determined to make a run for it.

One day, he came to a bank on the street next to the office.After finding the manager of the lending department of the bank, Akerson claimed to borrow a sum of money to repair the law firm.In the United States, lawyers have a high status in the eyes of ordinary people because they are well-known and well-connected.Therefore, when he walked out of the bank gate, he already had a cash check for $[-] in his hand.

Akerson then deposited the $[-] in another bank.Axon then walked two more banks and repeated the same process.The interest on these two loans totaling [-] U.S. dollars was offset by the interest on his deposits, and the difference was not much different.A few months later, Akerson withdrew the deposit and returned it to the two banks.In this way, Axon has established initial credibility in these banks.Since then, Akerson has played this trick of short-term borrowing and early repayment among more banks, but the amount is getting bigger and bigger.In less than a year, Axon had established solid bank credit.

With a solid reputation, Akerson soon borrowed $10 from the bank and bought a company that was on the verge of bankruptcy in Philadelphia.It was America in the 20s, and opportunity abounded. Eight years later, under Akerson's careful management, he has assets as high as 60 million US dollars!

In this way, Akerson used his clever brain to obtain enough loans from the bank and started his entrepreneurial journey.In fact, not only Akson, but almost everyone who dreams of starting a business dreams of getting a loan.For entrepreneurs, borrowing money is the fastest way to raise capital.Moreover, smart borrowing methods can also make you a great success. Not only can you use other people's capital to make money, but the part you win may far exceed the interest you have to pay during the borrowing process.But the premise is that you have a trustworthy reputation - repay the loan on time.

Loans refer to monetary funds that lenders (commercial banks and other financial institutions in my country) provide to borrowers and repay the principal and interest according to the agreed interest rate and time limit.The loan currency can be RMB or foreign currency.

Loan is an economic behavior in which banks lend funds to those in need of funds at a certain interest rate according to national policies, and agree to repay them within a certain period of time.

According to different classification standards, bank loans have various types.For example: according to different repayment periods, they can be divided into short-term loans, medium-term loans and long-term loans; according to different repayment methods, they can be divided into current loans, term loans and overdrafts; according to different purposes or objects of loans, they can be divided into industrial and commercial loans and agricultural loans , consumer loans, securities broker loans, etc.; according to different loan guarantee conditions, it can be divided into bill discount loans, bill mortgage loans, commodity mortgage loans, credit loans, etc.; according to the loan amount, it can be divided into wholesale loans and Retail loans; according to different ways of agreeing on interest rates, they can be divided into fixed-rate loans and floating-rate loans, etc.

Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different.For example, industrial and commercial loans in the United States mainly include general loan limits, working capital loans, standby loan commitments, and project loans, while industrial and commercial loans in the United Kingdom mostly use discounted bills, credit accounts, and overdraft accounts.

(End of this chapter)