Chapter 541: Shirakawa Nagashi Bank
The new business model of horizontal division of labor will have a fundamental impact on the production methods of the manufacturing industry.
It is the opposite of vertical division of labor, and all processes of a product are not completed by one company.
Instead, several companies are responsible for different processes, but overall they carry out production activities like a single enterprise.
Shirakawa Electric is trying to split its computers and LCD TVs into countless small units and entrust them to different parts processors in Japan and even abroad.
It only retains the supply of core parts such as chips and LCD production, and of course the final assembly will also be carried out at the Shirakawa Electric factory.
The benefit of doing this is that the manufacturing system can be further integrated to save more costs.
To sum it up in one sentence, this is how the global system is manufactured.
However, this process will not happen overnight and will probably take several years.
The ultimate goal is for Shirakawa Electric to focus only on front-end and back-end work such as product development, design, and sales.
Then, based on Shirakawa Electric's design, companies from all over the world produce parts, which are then assembled in mainland China.
This new processing model will be the mainstream in the future, and Shirakawa Electric has already taken the first step.
While people were still intoxicated in the bubble and companies were still struggling with reduced operating profits, Shirakawa Electric was already quietly undergoing changes.
In fact, it is not only Shirakawa Electric, but also most of the manufacturing companies under Shirakawa Holdings are like this.
On the contrary, software companies represented by HAL and SMM have further increased their R&D funds.
In order to avoid falling behind the trend, professional software companies such as SMM have even set up a research and development center directly in Silicon Valley.
While attracting talents, we are also preparing for the development of social software and communities.
Conservative Neon is not a good place for the development of the Internet. There are not even many professional talents here.
Therefore, if Shirakawa Holdings does not want to miss out on the information revolution, it has no choice but to go to Silicon Valley.
In addition to the software industry, another industry that has increased development spending is communications and entertainment.
If we talk about which industries can still achieve sustained growth after the bubble, the communications and entertainment industry must be one of them.
Communication is because mobile technology has just started, and this new thing, mobile phones, has already shined with the opportunity of entering the 2G era.
The latest generation of Shirakawa Electric mobile phones already supports Internet access, although the speed may be as slow as around 10kb/s.
But for many people, this is already amazing.
In order to increase the fun, Shirakawa Electric even brought Snake and Pac-Man into the mobile phone.
These simple and easy-to-play games quickly became popular around the world.
Yes, Shirakawa Electric's mobile phones are sold all over the world.
Because the 2G standard adopted by United Communications is the GSM format, it can also be used smoothly in Ouzhou, Latin America and other regions.
If nothing unexpected happens, in the next one or two years, mobile phones will be the most profitable business of Shirakawa Electric.
The so-called keeping up with the trend and not being left behind by the world means just embracing every change.
In this regard, Shirakawa Electric is more than one step ahead of its counterparts in Japan.
The entertainment industry is another area where Shirakawa Holdings has invested heavily. With the arrival of the bubble and the emergence of the "lipstick effect", people's consumption of this content will increase significantly.
Therefore, as one of the few industries that can generate profits in Japan in the future, Shirakawa Interactive Entertainment certainly has no reason to miss it.
Moreover, with the continuous release of several hit movies by Shirakawa Paramount in North America, Shirakawa Interactive Entertainment has also established a firm foothold in the international arena.
As for SIC, it is now very powerful. With the support of local capital in North America, it is in a close competition with Intel.
After several years of fighting, the processor chip businesses of Motorola and Texas Instruments are almost dead.
There are only two giants that attract the most attention in the market now, one is Intel and the other is SIC.
The confrontation between the two sides is also called the "East-West hegemony" by the media, because the competition between the two countries with similar strength may last for quite a long time.
As for the little-known AMD company that was just established not long ago, it can only tremble in fear under the confrontation between the two giants.
Of course, in the final analysis, Neon is Shirakawa Kaede's base.
Until the bubble impact and major changes in the financial industry settle down, his attention will still be focused here.
…
In mid-1994, as land prices continued to fall, Neon's real estate did not bottom out and rebound as many people had expected.
As the economy gradually declined, the 12 trillion yuan of funds previously allocated did not have the desired effect.
Congress had no choice but to discuss again whether to increase aid to the financial industry. However, at this moment, "Modern Foreign Magazine" suddenly published detailed information about Chang Hwa Bank's bad debts.
In addition to Changyin itself, the bad debts of its 38 subsidiaries were also exposed one by one.
Obviously, those columns of detailed data must have come from within China Everbright Bank. It no longer matters who made such top-secret data public.
Because the share price of Chang Hwa Bank had dropped to 89 yen with the publication of "Modern Foreign Magazine".
Everyone knew that Changyin was finished.
At this time, the government was still arguing over the issue of Chang Hwa Bank. The opposition party wanted to force Chang Hwa Bank to go bankrupt, the ruling party wanted to rescue it again, and non-partisans wanted to nationalize Chang Hwa Bank.
As the dispute continued, by August, Changyin's share price had reached 40 yen and was on the verge of delisting.
Kiichi Miyazawa, whose term of office was finally about to end, made his last decision during his tenure, which was to formally approve the business plan of Kitato Bank to acquire Nagak Osaka Bank.
He knew that if he left Chang Yin to the opposition, the only thing waiting for it was bankruptcy.
The nationalization of non-partisans is only a short-term plan, and the Japanese government cannot afford to support Chang Yin, which has been constantly sucking blood from it.
So after careful consideration, I decided that Kitato Bank's business plan was the most reliable.
Miyazawa does not know the final outcome of the sale of Changyin Bank to Kitato Bank, but it is better to leave it to the market than to politicians.
So on August 5th, Shirakawa Kaede brought Arai Hiroshi, Yashiro, and Tabuchi to the meeting room of the Ministry of Finance again.
"Mr. Shouxiang, Mr. Haneda, thank you for your care." Shirakawa Kaede politely saluted the two helmsmen of Neon's highest authority.
The outcome was already decided, he came here today just to personally check on them.
"Brother Baichuan, from now on, Changyin will be handed over to you. Please treat it well."
Miyazawa Kiichi and Haneda both bowed formally to Shirakawa Kaede, and their solemn tone had a flavor of entrusting an orphan to someone else.
"Please rest assured, Chang Yin will be reborn!" Bai Chuanfeng is already prepared for a series of reforms for Chang Yin.
This will be a completely new way of banking operation, and its goal is to adapt to the future economic situation in Japan and turn it from loss to profit within three years.
After getting his assurance, Miyazawa nodded, "Please~"
So, under the witness of the cabinet, senior officials of the Ministry of Finance, Shirakawa Kaede and others, Masamoto Yashiro signed his name on the agreement on behalf of the Kitato Bank.
At this point, the long-term credit banks that had been struggling for more than two years after the bubble burst officially became history.
Kitato Bank bought out Long-Term Credit Bank in its entirety for US$1 billion and will inject another US$1 billion in capital in accordance with the agreement.
Of the 26.6 trillion yuan in loans that China Merchants Bank originally had, nearly half were non-performing assets.
After several rounds of tightening of controls by the Ministry of Finance, nearly 4 trillion yen had been written off.
As for the disposal of the remaining nearly 6 trillion yuan of non-performing assets, after negotiation between the two parties, part of it will be sold to government recovery agencies.
The Ministry of Finance is in charge of this matter, and the Kitato Bank is responsible for the screening.
The so-called non-performing assets include a large number of land mortgages, some of which, in Baichuan Feng's opinion, are not included in the category of "non-performing assets".
For example, the Toranomon Building in Minato Ward and the Shiba Park Building, these landmark buildings have been hit by the property market and their value has been seriously underestimated.
Baichuan Feng took a rough look at their valuations, which were more than three times lower than those in later generations.
He made a profit by getting these properties, so how could he possibly throw them into the garbage dump?
After careful selection, and after Shirakawa Kaede personally reviewed it, 5 trillion yuan of non-performing assets were packaged and sold to the government recovery agency.
Most of them are financial credit products, and after evaluation, Arai Yu and others recommended abandoning them.
In this case, there is nothing less to say. What should be sold should be sold, and what should be kicked out should be kicked out.
But even so, Kitato Bank will have to take over the more than 1 trillion yen of bad debts originally on the account of Long-Term Credit Bank.
Otherwise, how could such a large company like Changyin be worth only 2 billion US dollars?
This risky bad debt of more than 1 trillion yen is the bulk of the debt. Including the cash it took out, Kitato Bank took over Nagak Osaka Bank at a cost of roughly 1.3 trillion yen.
Of course, how to deal with bad debts is also a science. If handled well, it may be possible to turn waste into treasure.
In addition, the remaining 11 trillion yen of loans of Long-Term Credit Bank are all healthy businesses, despite the Ministry of Finance's solemn assurances.
However, Baichuan Feng did not believe in the integrity of Japanese officials, so at his request, the two parties also signed a "sell option" clause.
That is, if bad debts occur in subsequent loans from Changyin, it has the right to ask the Japanese government to repurchase the loans.
This is just an extra layer of insurance for himself. Although he has already made a great profit, business is business.
After all these were done and the separation of non-performing assets was initially completed, the news of the merger between China Everbright Bank and Bank of North City was officially announced.
In September, Long-Term Credit Bank and Hokuto Bank officially released external announcements.
The former Long-Term Credit Bank of Japan will be fully integrated into the Kitato Bank, and the new bank will be renamed the Shirakawa Nagatoku Bank.
In fact, Shirakawa Kaede originally planned to simply call it Shirakawa Bank, but at the request of the Ministry of Finance, he retained the word "Naga Nobu".
This was the last stubbornness of the Ministry of Finance after adding these two words.
At least it can send a signal to the outside world that Changyin has only merged and is not bankrupt.
Shirakawa Feng did not object too much to this kind of self-consolation, and just regarded it as the last bit of dignity given to the Ministry of Finance .
The reason why it is called "Changxin" is not the more recognizable name "Credit".
That is because the merged Shirakawa Nagatoshi Bank is no longer a special bank and no longer bears its special responsibilities.
Shirakawa Nagatoku Bank will continue to operate as a regular bank, or a city bank.
However, now that it has just swallowed up Chang Yin , a series of internal reforms must be put on the agenda.
