Blackstone Code
Chapter 1467: something goes wrong
"It's a little troublesome..."
The head of the National Bank of Lemar is organizing a meeting between the middle and high levels of the bank. Since President Lemar expressed his dissatisfaction with the federal government, many foreign investors have begun to flee Lemar frantically.
Only now, the effects of these foreign capital's escape have not been revealed immediately!
As a country with a loose composition in the eyes of the president, once foreign capital flees, it will be a disaster for the country's financial market.
Ordinary people may not understand this, why the escape of foreign capital will cause a disaster for Lemar's local finance.
In fact, this is not such a complicated thing, just a bank loan is enough to be a headache!
During the period when foreign investors are engaged in business activities in Lemar, all funds are deposited in the National Bank of Lemar.
The National Bank has temporary access to the money until it is withdrawn or transferred.
During this period, how to use the money is the bank's own freedom!
Of course, each country has a bottom line to ensure that banks don't overuse the money and cause some unpredictable trouble.
In areas like Lemar, where finance is not developed, and most of the investments are industrial, the control over funds is slightly weaker. .
In Lemar National Bank, the total loan amount cannot exceed 82% of the total deposit. Compared with the 30% gap in the Federation, Lemar seems to have not set it at all!
Because it will only leave at most 18 percent of the total loan to prevent a possible run.
The run did not happen, but the foreign capital was transferred out!
As soon as the foreign capital is transferred out, the cash flow in the bank's hands is almost exhausted. This is also something that can't be helped. No one thought that the President would suddenly offend the Federation, and the Federation's response was so fast and violent!
By this time, it's too late to say anything.
The National Bank is asking regional banks in various regions to recover their loans, and at the same time urging businesses and individuals to pay their loans as soon as possible.
And this is also the main business of the National Bank.
Because of Lemar's stable financial market order and stable economic model, there has never been a problem before.
Now there is a problem, and there is no better way to solve it.
The only way to ease the pressure on funds is through collection.
The president looked at the conference table very seriously, but he couldn't tell the colleagues who bore him, and shook his head.
He casually threw the pen on the table, leaned back, and gave himself a comfortable posture, "Let's contact those regional banks first, there have been several large fund transfer applications recently, if we don't approve , there will be trouble."
"Also, contact those international bankers and ask if they can give us some money to use first."
Several large transfers have already been applied for before, but the National Bank has not approved the money for the time being on the grounds of "procedures".
Fortunately, the Federals expressed their understanding of Lemar's decision last week, which eased the current bilateral situation, otherwise it would definitely have to be urged.
If it doesn't work, you can only borrow a little money from other banks temporarily, and then exchange the money after the loan is fully recovered.
In fact, this kind of lending between banks often occurs, for example, the six major banks in the Federation also often lend to each other.
The loan between them is not because they have no money, but for example, there is a large withdrawal or inter-bank transfer in a certain area, and the cash in the branch or sub-branch is lower than the insurance amount.
It will take time to transfer from the head office. In order to prevent someone from hearing some rumors and running on the money, the bank will temporarily borrow some money from the other five banks.
The loan period for these funds is very short, and it can be changed after the money is transferred from the head office. It may be three or five days, or it may be a week or ten days and a half month, but it will definitely not be longer.
The federation has a rich financial ecological environment and many strong banks, so they have no shortage of funds.
Because of its special financial and economic environment, there is not much financial activity in Lemar.
Sometimes stability means slowness or even lag!
Then the big banks in such small countries will actually borrow money if they are short of money.
Some borrowed from neighboring countries, some borrowed from international bankers.
Borrowing from banks in neighboring countries is still a little troublesome. First of all, this matter will definitely be revealed.
The bank is out of money. The news is fatal to the bank itself, and people will ask, where the **** did I save my money?
So once the run wave breaks out, the bank really can't bear the run, any bank is.
Because of this money, the bank will definitely have to move it to other financial businesses, and it simply can't bear everyone's run on it.
So borrowing money from international bankers won't let the news leak out.
Those international bankers are also tight-lipped, they know what to say and what not to say.
The manager of international business nodded immediately, "I will contact those people after the meeting."
The president nodded slightly, "Remember, this matter must not be disclosed. Whoever reveals it and triggers a run will be the culprit!"
At this very special time, once a run occurs, people will have distrust in the bank, and will also have distrust in the country, which is not allowed.
Although many of the shares of the National Bank are in the hands of capitalists, it is the ruling class who really control the bank, otherwise it would not dare to call it the National Bank!
After the meeting, the president returned to his office. He hesitated for a while, then picked up the phone and called the president of Lemar.
In less than half a minute, the phone was connected, and after the voice of the president came from inside, the president's face unconsciously added a smile.
"Yes, it's me, Mr. President, I have something I'd like to talk to you about, about cash reserves..."
On the phone, he carefully explained how this happened, what process it went through, and the situation he was facing now.
In the end, he also told the president of his own solution, but he felt it was not particularly safe to do so.
"I mean in case there is some sudden change in the situation, can I be authorized to print an additional batch of cash?"
The National Bank has the right to issue currency, and as long as the Lemar government authorizes it, its printing presses can be turned on.
There are reserves of raw materials and everything. If the horsepower is full, they don't even need to borrow money from the outside world, and the additional cash is enough to deal with this storm.
The president's intention is to print the money first, so as to avoid what happens. If something really happens that no one wants to see, the money can make a big difference.
If these terrible things did not happen, the money would be sealed in the treasury and not used for the time being. When it is needed, the government announces additional issuance, and the bank can directly take out the money.
In general, this is a countermeasure, just in case.
After listening to the president, his head hurt a little. Many things have been bothering him recently, and he is not very sensitive to the financial economy. He is not very clear about the consequences of doing so.
Sometimes he felt that Sea God made a joke with him, otherwise how could the situation get so bad?
Fortunately, the president's explanation was fairly careful. After listening to the president's words, the president somewhat understood.
He hesitated for a moment, but soon he became less hesitant.
Compared with the international situation, what is an additional batch of domestic printing money?
"I agree to your request, arrange it immediately. Does this matter need to be kept secret?"
The president held the phone in both hands, "Yes, Mr. President."
"Well, I know, if there is any new news, tell me again, and the authorization will be delivered to you in the afternoon."
In the afternoon, two government officials sent the authorization documents to the office of the president for handover.
Around four o'clock in the afternoon, the coin factory started to work, a lot of raw materials came in and out, and the engineers all came back to work.
In fact, none of them know what happened, why they suddenly want to print a batch of currency.
But this kind of thing is a secret thing, and with the president's instructions, everyone didn't say anything.
The newly printed banknotes did not use a new design. Considering the problems of identification and anti-counterfeiting, they made some changes to the previous design.
For example, the printing date is changed to this year, for example, the composition of the Lemar Islands on the front of the banknote is rotated by fifteen degrees.
These are details that cannot be seen without a careful look, but they can still play a very important role in preventing counterfeiting and restricting the circulation of counterfeit coins.
This day, we worked until two o'clock in the middle of the night. Under the supervision of the president of the company, the plate-making work was completed.
Early the next morning, after seven o'clock, the general manager drove to the printing factory. When the first version of the banknotes with the scent of ink and a slight heat appeared in front of him, a smile appeared on his face. .
With this money~www.readwn.com~ the consequences of foreign capital fleeing will be ignored, which also made him take a big breath.
After he signed his name on the final edition and also issued a document agreeing to the printing of this edition, the whole coin factory started to work, and the machinery roared!
Under the rumble of the printing press, those worthless papers turned from white paper to white paper full of lines, to white paper that became currency after coloring. In fact, it didn't take a long time.
The money was piled up one by one, and as the steam paper cutter started and fell, they turned into stacks of one hundred coins.
The engineers checked again and again, confirmed that it was correct, and took a part of the sample coins back to the president.
When the money was in the president's purse, he was relaxed.
The president soon found out about this. After confirming that there was no problem in the printing process, he ended the communication between him and the president with the words "contact me if there is any problem".
He did not take this matter to heart, but concentrated on dealing with some bad signs in the country, which is also related to the escape of foreign capital.
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