The Bahrain banking incident, looking at the global financial industry, is actually not a big deal. However, the main reason for the shock of the global financial market is that it has pierced the skin of the risk control capabilities of large banks.

At the same time, the bankruptcy of the Bank of Bahrain will indeed set fire to hundreds of financial institutions around the world. Hong Kong's HSBC and Standard Chartered, in fact, have also been affected to a certain extent, but the losses are not as large as those of Hang Seng Bank.

The main reason is that Hang Seng Bank does not have many self-operated outlets in the international market, and in order to expand its business, it has to cooperate with some local financial institutions.

The main purpose of the partnership with Bank of Bahrain is to expand Hang Seng's services to the UK market. Since Hang Seng does not have a branch in the UK, it has to cooperate with Bahrain to deposit a part of the funds in the Bank of Bahrain to improve the arrival time and efficiency of Hang Seng Internet Banking Internet transfer in the UK.

Although Lin Qi knew the time of the bankruptcy of the Bank of Bahrain, because he did not pay attention to the specific operation of its subsidiaries in advance, he never expected that Hang Seng Bank was the financial institution that suffered the most damage in the bankruptcy of the Bank of Bahrain.

Even, some media in Hong Kong used Hang Seng Bank as a negative example, ridiculing the nouveau riche Hang Seng Bank's risk control ability is far less than that of HSBC.

Of course, there is no need to investigate at all to know that these news must have been instructed by Hang Seng Bank.

In the past five years, Hang Seng Bank has rapidly narrowed the gap with HSBC in terms of market capitalization, deposit size and profitability. Originally, Hang Seng's market capitalization and profit were about one-fifth of HSBC's, and most investors only regarded Hang Seng as a smaller version of HSBC. No one thinks that Hang Seng will one day be on an equal footing with HSBC.

However, with the acquisition of Hang Seng by the new venture electronics group, a series of operations that the market cannot understand. Entered the Chinese mainland market in a big way, and became the world's first Internet bank, the first to provide online payment solutions. The birth of online banking is equivalent to helping the Internet complete the monetization of traffic.

Before the traffic of the Internet was linked to the currency, it could only do some advertising, and the value of the traffic was also very low. However, with the solution of the payment problem on the Internet, there are more and more customers of online banking and online payment, and any Internet access user can easily make payment and transfer, and the traffic value on the Internet will naturally begin to become more and more valuable rapidly.

Hang Seng Bank, which was the first to provide online banking as an online payment infrastructure, is currently the absolute leader in the online banking market, with 8.5 million online banking customers.

It is precisely because of the economic development of the domestic market and the user dividends brought by the Internet market that Hang Seng is now far better than HSBC's current development momentum, driven by the two-wheel engine.

Although HSBC has the status of a note-issuing bank in Hong Kong, it helps to increase credit. But in fact, the note-issuing banks themselves need to occupy a large amount of US dollar foreign exchange deposits, and how many US dollars can be issued in order to issue Hong Kong dollars. There are not necessarily more benefits than a local credit mark-up in Hong Kong.

It is precisely for this reason that Hang Seng Bank is far better than HSBC. In addition, HSBC is a little unhappy with Hang Seng Bank, the former little brother, gradually starting to sit on an equal footing with itself, so the friction between the two banks is getting more and more.

This time Hang Seng Bank stepped on the thunder, and if HSBC didn't seize the opportunity to smear it, it would be hell.

"Boss, I'm sorry, I betrayed your trust!" Lin Weizhong, CEO of Hang Seng Bank, explained lightly in front of the media and investors, but he still understood, and more importantly, explained to Lin Qi, the actual controller of Hang Seng Bank, "Before the Bahrain Bank incident, in fact, in Singapore, In Japan and other places, there are some abnormal capital flows in the Bank of Bahrain, and we only thought that we were customers of the Bank of Bahrain and made some investments with the help of the channel of the Bank of Bahrain, but we did not expect that it was actually the employees of the Bank of Bahrain who carried out such high-risk speculation! If we had an in-depth understanding, it would be possible to reduce the scale of cooperation with the Bank of Bahrain, and the losses would also be reduced......

"Lao Lin, the black swan incident of the Bank of Bahrain, don't be too guilty. Lin Qi comforted Lin Weizhong, "It is imperative that Hang Seng Bank learn the lessons of the Bank of Bahrain incident and strengthen risk control management." Enterprises with higher risks should set up independent subsidiaries to be isolated from the main enterprises of Hang Seng Bank. Banks can innovate in terms of technology to serve users, but innovation is mainly technology that makes customers feel more useful, for example, the technology of online banking, which makes users' transfers, payments, and operations more convenient, and this is high-quality technological innovation. As for the fact that the banks themselves go to speculate in stocks, futures, and foreign exchange, and especially, if they increase leverage, they are going crazy and crazy. Banks are not the ability to make huge profits, but the ability to serve customers and the ability to control risks! Online banking, Internet-based transfers, payments, deposits, and loans, which stretches out the tentacles of services beyond physical outlets, has improved the quality and efficiency of our services, and these advantages should be strengthened. In addition, in terms of risk control, it is better to be conservative and cautious, make less money, do less big projects, and avoid encountering catastrophes. For banks, it is more important to survive for a long time than to pursue short-term profits!"

Lin Weizhong said with a smile: "Boss, we have always been the bank that attaches the most importance to risk control, and 99% of the loans are loans of less than 1 million yuan. 90% of the loans are less than 10,000 yuan. For all our loan clients, we follow up on the qualifications of all our clients on a long-term basis. Hundreds of millions of large loans are basically rarely done. In addition, deposits and loans, credit cards and fund transfers have always been at the core of our business. We have always been cautious about securities, funds, insurance, trusts and other businesses, and even if we do, we will earn the amount of handling fees from customers, and we will never take risks in person......"

Lin Qi thought for a while and said: "The time for the bankruptcy and liquidation of the Bank of Bahrain, in fact, you can try to see if you can turn the crisis into an opportunity!"

"Turn crisis into opportunity?" Lin Weizhong wondered.

"You can try to operate the debt-to-equity swap!" Lin Qi thought for a while and said, "This is equivalent to capital injection, which improves the balance sheet of the Bank of Bahrain and revitalizes the Bank of Bahrain." ”

Lin Weizhong frowned and said: "However, it is difficult to say how big the pit of the Bank of Bahrain is. Moreover, after bankruptcy and liquidation, it is estimated that it is difficult to retain more than 20 billion assets and customers. ”

"However, Bank of Bahrain has a large number of skilled employees and financial licenses. Lin Qi smiled and said, "Acquire the Bank of Bahrain, cut off a large amount of self-operated capital investment business, and no longer do things like gambling with yourself." Rather, it will vigorously develop the securities brokerage, fund and other businesses of the Bank of Bahrain. Funds and securities business, mainly to earn management fees and commissions. Especially in the Internet era, it is difficult for online brokerages and fund issuance and sales platforms to lose money in the end. You think, how simple is the Internet-based securities trading, customers directly fill in the buy and sell transaction orders on the home network, and after the transaction, the brokerage closes its eyes to collect the money, and there is no need to hire many customers, basically the system program is automatically completed. The fund business is the same, except for a small number of active funds, need excellent fund managers, in fact, the vast majority of passive funds, such as index funds, do not need too good fund managers at all, passive tracking index constituents is, no need to use their brains, the cost of index funds is low, to win with small profits and quick turnover, not to mention, customer losses are also the customer's own problem. ”