Chapter 535: Extra Clock
Looking at the data in his hand, Baichuan Feng became more and more excited.
Nagashikaga Bank is one of the top banks in Japan.
How could he not be tempted by this plate of meat?
Putting down the information in his hand, Baichuan Feng sighed inexplicably.
"Arai-san, do you think we have a chance?"
Arai Yu, whose hair and beard are all gray, can understand Shirakawa Feng's anxiety, or concern, towards Chang Yin.
Because Changxin Bank is different from other banks, both in terms of background and function.
Just as he and Professor Yamada had analyzed in depth to Shirakawa Kaede, Neon capitalism has its own characteristics.
Since the Meiji Restoration, talented predecessors have been exploring capitalism suitable for Japan.
Among them, there are three main theories that are more widely accepted: Shibusawa Eiichi's "Shibusawa Capitalism", Fukuzawa Yukichi's "Universal Principles of the World", and Mitsubishi zaibatsu's Iwasaki Yataro's "Zaibot Capitalism".
The latter two, one took Europe and America as a model and the other had monopoly as the ultimate goal. In the end, they were unable to adapt to Japan and were gradually eliminated.
The proposition of "Shibusawa capitalism" is to curb the greed of capitalism through Japanese methods.
This is an elite system unique to Japan, and it is used to defuse the offensive of massive invading foreign capital and foreign culture.
The two core points it emphasizes, "the unity of righteousness and profit" and "the Analects of Confucius and the abacus", are also regarded as the guiding principles by most people in the financial world.
Especially in the Ministry of Finance, many of them are "Shibusawa faction" and are staunch believers in this model.
For this reason, post-war Neon developed rapidly for more than 20 years based on the blueprint of "Shibusawa capitalism".
However, with the evolution of time, a new Shibusawa capitalism was born in the 1970s.
The main forces advocating it are Industrial Bank, the Ministry of Finance, and Nippon Steel Corporation .
In the post-war era of capital shortage, Xingyin Bank was in charge of fund allocation and was the headquarters of the Japanese economy.
The Ministry of Finance has exclusive rights to grant licenses in taxation, finance and other financial fields, and is the regulator of Japan's economic system.
Under the slogan "Steel is the lifeblood of the nation", Nippon Steel Corporation stands at the pinnacle of industrial capitalism and dominates the Japanese financial world.
These three factors provided strong support for the Liberal Democratic Party to dominate the regime for a long time.
It can be said that from the 1950s to the 1980s, Japan's economy has been operating according to this model.
As the most special existence in Japan's banking industry, Xingyin's position has always been unshakable.
If Japan's banking industry must be classified into levels, then Xingyin Bank would be at the top.
Under it are urban banks, trust banks, other long-term banks and financial institutions in the government system.
Further down the list are local banks, mutual banks, credit unions, and financial institutions in the agricultural cooperative system.
A simple and clear pyramid system is formed according to the size of the funding allocation authority.
In addition to the hierarchical classification, the Neon government also implemented a division of labor among these banks.
Metro banks provide short-term loans to large businesses, while local banks serve small and medium-sized customers.
The Trust Bank was made responsible for asset management, and the Bank of Tokyo was reorganized into a specialized foreign exchange bank.
The three "Changxin Bank" banks are the most special, as they are responsible for coordinating national resources.
The three banks with state-owned backgrounds are Industrial Bank, Kangyo Bank, and Japan Credit Bank.
However, like the chaebols, they either turned to ordinary banks or split up and reorganized under the orders of the United States.
Among them, Industrial Bank has begun to transform into an ordinary commercial bank, but it is still the most special in terms of composition.
The Kangyo Bank was split into two, with one half reorganized into the current Dai-ichi Kangyo Bank, which is positioned as an urban bank.
The other half is the current Changxin Bank, which mainly provides long-term equipment loans to heavy industries such as electricity, steel, and shipbuilding.
The Japan Bond Credit Bank mainly focuses on the bond and real estate industries. After all, its predecessor is the Real Estate Bank of Japan.
Other chaebol banks such as Mitsubishi, Mitsui, and Sumitomo were all classified as city banks, and Shirakawa Kaede's Kitato Bank was one of them.
This is the general pattern of the modern Japanese banking industry, with clear positioning from large to small.
However, with the impact of a large amount of capital during the bubble period, the original banking system has become riddled with holes and rotten.
Industrial Bank, China Changxin Bank and other banks that were once high and mighty could not resist the temptation of the real estate and stock markets and began to engage in the civilian loan business on a large scale.
Today, the status of the once three special banks has been lost forever, and in terms of function, they are infinitely closer to urban banks.
But after all, they were once glorious, and they still occupy a special place in the Ministry of Finance.
At the same time, this is also the reason why Baichuan Feng did not set his target on Industrial Bank.
Its status is too special, and the weight of Beidu Bank should not be able to control its fate.
Even if the other party has this intention, the Ministry of Finance will not agree.
Don't forget that the Ministry of Finance is the one that is trying hard to maintain this system, and they are most reluctant to see the collapse of "New Shibusawa Capitalism."
Compared with Industrial Bank, Changxin Bank is not as conspicuous, especially since it was the first to reveal a flaw.
4 trillion yen in bad debts is no joke. If it were other banks, they would have gone bankrupt long ago.
Looking at Shirakawa Kaede's excited eyes, Arai Yuya felt a rare surge of blood.
“President Shirakawa, the Japanese banking industry has long been in name only.
Now everyone is waiting, waiting for the first person to take that step.
Regardless of how the process changes, the outcome has already been determined.”
Because of the impact of the bubble burst, although many banks were burdened with large amounts of bad debts, few actually went bankrupt.
The reason for this is that the Ministry of Finance is trying hard to maintain the "myth that banks will not fail."
In other words, the Ministry of Finance will not allow banks to go bankrupt, especially those with state-owned capital.
If the Ministry of Finance had not interfered, some banks that could no longer sustain the economy .
After all, facing more and more bad debts every day, not every bank can persist.
If the Ministry of Finance holds you accountable later, they will see that the most bad debts were generated during your tenure. If not you, who else will they hold responsible?
But judging from the current situation, it is obvious that Changyin chose to cover up the facts.
Although there are speculations from outside that Changyin gave up its controlling stake in EIE because it encountered difficulties.
But no one knows what kind of situation Changyin is facing now.
Only people with ulterior motives like Shirakawa Kaede and Arai Yu have a rough idea of Changyin's situation.
Arai Hiroshi's statement that the banking industry is already in name only is not an exaggeration.
According to the data they have, almost all banks have a large amount of non-performing assets, among which real estate mortgage loans are the largest.
There is no doubt that as housing prices continue to fall, at least one-third of these banks will not be able to hold on.
Since it is bound to go bankrupt sooner or later, why not make more efforts to make it die sooner and be reborn?
Speaking of being a troublemaker in the banking industry... bah, speaking of promoting reforms in the banking industry, it is his duty-bound duty to do so.
“Arai-san, since others don’t know Chang Yin’s difficulties.
Do you think we should show some sympathy to the other party, speak to the public on his behalf, and encourage everyone to buy more Changyin shares?"
Baichuan Feng, who was calculating rapidly in his mind, spoke compassionate words in an uncertain tone.
Arai Yu was stunned for a moment, then he realized that Shirakawa Feng's words should be interpreted in the opposite way.
"Hmm~, it's not impossible to advertise it, but I don't know how the Ministry of Finance will react."
“The Ministry of Finance is busy with its work and probably doesn’t have time to pay attention to these things.
Besides, if it's really too idle, we can find something more for it to do."
Baichuan Feng, with a flickering look in his eyes, has already made up his mind. The next step is to talk to Chang Yin.
As for the "pyramid system" that the Ministry of Finance is trying hard to maintain..., there is a saying that goes: There is no construction without destruction, and only after destruction can construction be achieved.
"Find an opportunity to disclose the bad debt information of Chang Hwa Bank, and also disclose the bad assets of other banks such as Industrial Bank, Yamaichi Securities, and Tokai Bank."
Following the last financial scandal, Shirakawa Feng is ready to give his colleagues extra time.
Shi Penzi, keep on digging, don't stop exposing the past, speed up~ speed up~
Arai Yu most admires Shirakawa Kaede's entrepreneurial spirit of breaking the rules and constantly facing challenges.
To be honest, in conservative Japan, few people can do this.
Now he is once again challenging the "bank invincibility myth", which is undoubtedly the first time in Japan's banking industry.
He is the first person to personally take down one of the three major banks. Just thinking about it makes my blood boil.
Now that the goal has been made clear, Arai Yu did not hesitate and immediately began to prepare for this part of the work.
As a senior expert in the financial industry, he knows what kind of news is most fatal to banks.
As land prices plummeted, a large number of real estate companies went bankrupt and banks' non-performing assets surged.
There were suddenly more and more news reports in the newspapers about the impending bankruptcy of certain banks, and the one that was highlighted was of course China Merchants Bank.
The first was the disclosure of Long-Term Credit Bank's losses in EIE's international investments, with bad debts of 1.5 trillion yen, which shocked the entire business community.
Faced with such accusations, an angry Changyin immediately denied it.
In order to establish a healthy financial image for themselves, the top management even produced the so-called revenue statements.
From this report, it seems that there is indeed no problem with China Merchants Bank; at least it is much better than other banks.
However, before the other party could be proud for too long, a news magazine quickly exposed their trick.
The so-called revenue statement of Changyin Bank deliberately "off-balance sheet" the non-performing loans.
The specific approach is that Changyin has a large number of subsidiaries.
Then the subsidiary company purchased the land originally mortgaged by the developer at the book price, and the developer thus repaid the loan.
After that, the subsidiary company borrowed money from Changyin to obtain funds for purchasing land and building houses.
To put it bluntly, it is like transferring money from one hand to the other. The actual land and bad debt situation have not changed, but the debt has been transferred out on the surface.
After all these operations, the revenue report will certainly look good.
However, the emperor's new clothes were torn off, and Changyin, who was unable to cover himself up, was immediately speechless.
After all, if you carefully check these subsidiaries, you will find out who the actual controller is.
There are many media outlets that have the leisure to do this. Baichuan Feng just threw out a hint and a bunch of reporters immediately came to the rescue.
Not only did they uncover many of Changyin's subsidiaries, they also discovered that its bad debts were far more than that.
4 trillion yen in bad debts, well-deserved Neon Namba.
Faced with the shocking reports of non-performing assets, the stock market gave its most authentic reaction.
