Chapter 542 Digestion
The announcement that Changyin Bank would be fully merged into Kitato Bank and renamed Shirakawa Nagashin Bank caused a major earthquake in the banking industry.
Although Long-Term Credit Bank was previously embroiled in various scandals involving non-performing assets and insider trading, its stock price once fell to less than 100 yen.
But what was once one of the three largest banks and a financial tool in the hands of the Japanese government has now fallen to the point of being acquired by a city bank.
This sudden change deeply shocked many practitioners in the banking industry. It turned out that banks in Japan could also go bankrupt.
Although the Shirakawa Nagashiki Bank has the words "Changxin" in its name, any discerning person knows what's going on.
Especially the two words "Shirakawa", which clearly show the background of this new bank.
A former special bank merged with a chaebol bank? Countless banks caught up in bad debt crises are beginning to stir.
I have to say that the cooperation between the Ministry of Finance and Kitato Bank is off to a good start.
Since the Ministry of Finance does not allow banks to go bankrupt, you can merge them, right? After all, you did it yourself.
But although it is called a merger, everyone knows what is going on inside.
Bankruptcy sounds so ugly, this is just a strategic cooperation.
Baichuan Feng has no control over the outside world's restlessness.
At this time, he was busy carefully counting Changyin's inheritance with Arai Yu and others. He had swallowed a big thing in one gulp, so of course he had to digest it well.
As a newly-born bank, Shirakawa Nagatoshi Bank not only changed its name, but also its management team underwent a drastic change.
First of all, the former head of Kitato Bank, Hiroshi Arai, has been promoted to the chairman of Shirakawa Nagatobu Bank.
In the organizational structure of Japanese companies, the chairman is usually the position taken up by the president after he retires.
At the same time, the president will also be a member of the board of directors. They generally do not participate in the management of the company and only express their opinions on major decisions.
Yu Arai is already in his seventies, and due to his advanced age, his energy and physical strength are not as good as before.
It was obviously too much to ask him to hand over the complicated .
So after Baichuan Feng considered it, and since he himself wanted to retire, the position of president was given to him.
This position is perfect for him as he does not have to personally participate in daily management while being able to occasionally take care of the bank.
With Hiroshi Arai retiring to the second line, the position of bank head can only be given to Masamoto Yashiro.
This was one of the promises made by Baichuan Feng when he poached him from Citibank. At the same time, after comprehensive consideration, he was the only one who was more suitable for the position of head of Shirakawa Nagashino Bank.
As an "internationalist", Masamoto Yashiro has extensive experience in multinational corporate management.
The future reform direction of Shirakawa Nagatoshi Bank is to align with international standards and get rid of the rigid Japanese traditional banking system.
So after much deliberation, it is decided that Masamoto Yashiro is the most suitable person. As for Tian Yuan, his original field is in the securities industry, and Shirakawa Kaede has reserved the position of vice president for him here.
The bond finance issues originally left by Changyin will be handed over to him, and he will be in charge of the area.
However, speaking of the "international faction", there are actually two other people present, namely Katsunobu Ohanogi, former vice president of Nagain Bank, and Hirao Koji.
They have all received training in foreign financial expertise, are proficient in English, and have a deep understanding of foreign capital operations.
Before the merger of Long-Term Credit Bank, Ohnoki was in charge of the "Investment Banking Group" and Hirao was responsible for developing Long-Term Credit Bank's international capital markets in New York.
In the 1970s, Chang Hsin Bank also considered transformation, and its original plan was to shift from a special bank to an investment bank.
This advocacy is the goal proposed by Ohnoki, so he has been in charge of this part of the business.
But in the 1980s, the decadence and extravagance of the bubble confused Chang Yin's heart, and it never turned back from the path of speculative banking.
Although Changyin has collapsed now, it still has many talented people within it.
For example, Ohnoki and Hirao, who were sitting in the conference room in a proper and orderly manner, will continue to work at Shirakawa Nagatoshi Bank at the invitation of Shirakawa Kaede.
However, as a "surrendered general", there was no need to think about taking the bank's head, as that would be left for one of his own meritorious officials.
But like Tian Yuan, the position of vice president of Shirakawa Nagatoshi Bank is more than enough for their talents.
Although they are both vice presidents, the vice president of Chang Hwa Bank is much worse than the vice president of Shirakawa Nagashiki Bank.
The latter is the product of the merger of the two parties. Both in terms of scale and asset health, it is much higher than the original Changyin.
Therefore, Baichuan Feng, who was sitting at the top, took a quick look and saw that everyone's expressions were very satisfied.
Obviously, everyone was privately very satisfied with this arrangement.
“Well, we have completed the division of the former Changyin’s non-performing assets with the government recovery agency.
Now, Mr. Yashiro, please tell us in detail about the remaining assets of Changyin. "
"Hai" Masamoto Yashiro stood up and saluted with a red face.
"After a round of asset division and account balancing, the original 26.6 trillion yen loan of Long-Term Credit Bank is now down to about 11.3 trillion yen.
Of these, 1.6 trillion were assessed as non-performing assets, and their loan collateral was mainly provided by real estate companies.”
Baichuan Feng looked at the information in his hand and nodded slightly. The list of the top ten borrowers of the former Changyin Bank has changed a lot from the last time.
Among them, financial companies have basically disappeared, and have been replaced by real estate and manufacturing industries.
Real estate companies at least have land as collateral, but what do financial companies have? Stocks and bonds?
Don’t you see that the Japanese stock market is in a half-dead state now? How can it still make a profit?
So when choosing to divide the bad assets, Baichuan Feng wanted to kick them out first.
"Except for the 1.6 trillion yuan in non-performing assets, the remaining 9.7 trillion yuan in loans are basically scattered among large and small companies.
Among them, the physical manufacturing industry accounts for the majority, with a total of more than 7,000 enterprises.
Kawasaki Steel, Tepco, Nissan, Toyota, etc. are all our major customers.”
Hearing this, Baichuan Feng's eyes lit up. After stripping off the bad assets, Changyin is still very attractive~
As we all know, the loan business of the physical manufacturing industry is the most stable.
In other words, the risk is low. Although the cycle is relatively long, it is stable.
Compared with the financial industry, the probability of bankruptcy in the physical manufacturing industry is much lower.
Of course, with the coming of the Great Depression, some companies among these $9.7 trillion lenders will surely go bankrupt.
However, compared with the high risks in finance and real estate, they were worth it for Baichuan Feng to take a risk and swallow up Changyin.
Besides, even if a few of them eventually go bankrupt, it will cause losses to Shirakawa Nagatoshi Bank.
The interest paid by other lenders alone is enough to settle this part of the account. It is impossible for more than 7,000 companies to go bankrupt.
If that's the case, Neon is really finished.
Therefore, as long as you don’t lose money in the end, you will make money by holding Changyin.
After all, it only cost 2 billion US dollars to get a complete international bank for free, which is a huge profit.
Now that we have a general understanding of Changyin’s assets, it’s time to talk about how to dispose of them.
"Long-term Bank originally obtained financing by issuing bonds. When will these bonds mature?"
"One-year bonds for individuals account for less than 20%, which we can handle on our own.
Most of the five-year bonds were issued between 1994 and 1996, and considering our financial situation, there should be no problem. "
After listening to Yashiro's report, Shirakawa Feng nodded and felt relieved.
Of the total loans of 11.3 trillion yuan, the principal belonging to China Everbright Bank itself is very small, less than 700 billion yuan.
The rest was raised through the issuance of bonds, and this borrowed money had to be repaid with interest.
However, with more than 7,000 companies paying a portion of the principal plus interest every month, and Kitato Bank's own strong financial resources, Shirakawa Nagatoshi Bank should have no problem getting through this bond rebate period.
“Now that we are a new bank, we should no longer use the financing model of Changyin.
In the future, 20% of Shirakawa Nagatoshi Bank's financing will come from issuing bonds, and the remaining 80% will be provided by depositors and the stock market.
"Hai" Masamoto Yashiro was not surprised by this.
As a commercial bank, the stock market and depositors' savings are the main sources of lending funds.
The Shirakawa Nagashiki Bank will also be listed in the future. This is one of the conditions agreed to by the Ministry of Finance when acquiring Nagashiki Bank, in order to facilitate supervision.
After all, a giant bank can only make people feel at ease if it is put under the public eye.
"I'll be in charge of Shirakawa Nagashin Bank's future bond issuance business, Mr. Tian Yuan."
This was his specialty, and Tian Yuan himself stood up and took the order without hesitation.
"The loans to more than 7,000 companies are essentially like investment banking .
So considering your familiarity with the business, Mr. Ohnoki, you will continue to stay in the investment banking group.
In the future, while maintaining our business, we can also appropriately develop new customers.”
"Huh!" Oonoki didn't expect that he could continue to take on important responsibilities even after changing his employer.
So out of gratitude, his salute became much more formal.
"As for Mr. Hirao," Shirakawa Kaede looked at Hirao Koji who looked nervous and smiled.
“The business of Beimi cannot be abandoned halfway, and you still need to be there in person.
Of course, there are many excellent juniors in the bank who lack opportunities to train, and I will trouble Mr. Pingwei to take care of them when the time comes."
"No problem, President Shirakawa, please leave it to me."
It seems that Shirakawa Nagatoku Bank is planning to increase its international investment in the future, so Hirao Hiroji is not dissatisfied with this arrangement.
In the key departments of the future, there will be arrangements for younger generations to gain experience, so their core position in the future will definitely be assured.
The reason why Shirakawa Kaede arranged for Hirao to go to Kitami was that the other party was familiar with this part of the business.
In addition, one of the purposes was to send Daimaru, Oda and others there to train. The only place to study finance professionally is Wall Street.
Baichuan Feng's move is already to train the future successor of Baichuan Nagashiki Bank.
After arranging the vice presidents, Shirakawa Feng once again set his sights on Masamoto Yashiro.
"Hachiko-san, tell me about it. Let me give you a brief introduction to the future business direction, goals, and short-term and long-term measures of Shirakawa Nagashin Bank."
"Hai" Masamoto Yashiro stood up and took out the information he had prepared long ago.
