Blackstone Code Chapter 1467: Something went wrong
"Some trouble..."
The head of the National Bank of Lemar is organizing a high-level meeting of the bank. Since President Lemar expressed his dissatisfaction with the federal government, many foreign investors began 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.
Maybe ordinary people don't understand this, why the flight of foreign capital will cause a disaster for Lemar's local finance.
In fact, this is not a complicated thing, just a bank loan is enough to be a headache!
While foreign investors are engaged in business activities in Lemar, all funds are deposited in the National Bank of Lemar.
National Bank has temporary access to the money until it is withdrawn, or transferred.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, every 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 federal government's 30% gap, Lemar seems to have not set it at all!
Because it will only leave at most 18% 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!
At this point, it's too late to say anything.
The National Bank is asking regional banks in various regions to recover their loans, while 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.
There is a problem now, and there is no better way to fix it.
The only way to relieve the pressure on funds can be 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 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 If you don't approve it all the time, there will be trouble."
"Also, contact those international bankers and ask if they can give us some funds to use first."
There are several large transfers that have been applied for before, but the National Bank has not approved the money for the time being on the grounds of "procedures".
Fortunately, last week the federals expressed their understanding of Lemar's decision, which eased the current bilateral situation, otherwise it would definitely have to be urged.
It really doesn't work, so I can only borrow a little money from other banks temporarily, and exchange the money after the loan is fully recovered.
In fact, this kind of inter-bank lending often happens, 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 premium.
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 money 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 Commonwealth has a rich financial ecological environment, and there are 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 would actually borrow if they were short of money.
Some borrowed from neighboring countries, some borrowed from international bankers.
It's still a bit troublesome to borrow from banks in neighboring countries. First of all, this matter will definitely be revealed.
The bank ran out of money. The news was fatal to the bank itself, and people would ask, where the **** did I save my money?
So once the run trend breaks out, the bank is really unable to withstand the run, any bank is.
Because of this money, the bank will definitely 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 leak the news.
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 discloses it and triggers a run will be the sinner!"
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 the capitalists, the real control of the bank is the ruling class, 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 had a smile on his face.
"Yes, it's me, Mr. President, I have something I'd like to talk to you about, about cash reserves..."
He carefully explained on the phone how this happened, what process it went through, and the current situation he was facing.
Finally, he also told the President about his solution, but he didn't feel it was particularly safe to do so.
"I mean in case the situation changes a bit, 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 money printing presses can be turned on.
There is a reserve of raw materials and so on. If the horsepower is full, they don't even need to borrow money from the outside world. The additional cash is enough to deal with this storm.
The president's intention is to print the money first, to avoid the situation in case, 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 vault 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.
The president has a headache after listening to it. Many things have been bothering him recently. In addition, he is not sensitive to the financial economy. He is not very clear about the consequences of doing so.
Sometimes he thinks Poseidon is playing a joke on him, otherwise how could things get so bad?
Fortunately, the president's explanation is quite careful. After listening to the president's words, the president somewhat understood.
He hesitated for a moment, but soon he was less hesitant.
Compared with the international situation, what is an additional batch of domestic printing money?
"I agree to your request, please arrange it immediately. Does this matter need to be kept confidential?"
The president holds 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 of the same day, two government officials sent the authorization documents to the president's office for handover.
At 4:00 pm, the coin factory started to work, a lot of raw materials came in and out, and the engineers all came back to work.
Actually, none of them knew what was going on, why they suddenly wanted to print a batch of money.
However, this kind of thing is classified as a confidential matter, and with the advice of the president, everyone did not say anything.
The newly printed banknotes do not have a new design. Considering the problems of identification and anti-counterfeiting, they have 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 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 I worked until midnight. Under the supervision of the president, the plate-making work was completed.
In the early morning of the next day, after seven o'clock, the general manager drove to the printing factory. When the first edition of the banknotes with the scent of ink and a slight heat appeared in front of him, his face showed some smiles.
With this money ~IndoMTL.com~ the consequences of foreign capital fleeing would be ignored, which also gave him a big sigh of relief.
After he signed his name on the final edition and also issued a document agreeing to the printing of the edition, the whole coin factory went 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 being filled in. In fact, it didn't take a long time.
The money was piled up one by one, and as the steam paper cutter was activated and dropped, they turned into stacks of a hundred coins.
The engineers checked again and again, confirmed that it was correct, and took a part of the sample coins back to the general manager.
When the money was in the president's purse, he was relaxed.
The president soon learned about this, and 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 didn't take this matter to heart, but concentrated on dealing with some bad signs in the country, and this is also related to the escape of foreign capital.