The establishment of the 1225 Banking Union
"Qin's national defense strategy relied heavily on Qin's economy." Shang Wen said.
"If you look at it from an economic point of view. Qin's most important issue at the moment was financial reform, not national security. Shang Wen said.
"If you want to solve the problem of national defense and security, you must solve the financial problem." Shang Wen said at this time.
"So, we need to speed up the reform of the banks now." Shang Wen distinguished the priority of the problem at this time. Although Shang Wen was not interested in the Qiang problem. Because, this usually means that the Qin army will carry out a bloody massacre against another race.
Shang Wen had always opposed this, but Qin's expansion was usually accompanied by bloodshed. It's like the westward expansion of the United States, which bloodied the Indians.
"Yes. The prime minister is right about this. Qin's main problem now is money. The Qin state relied on financial expenditures to fight. Soldiers need to be paid in order to be transferred. Weapons, ammunition, logistical supplies, everything needs money, and now the entire banking system of the Qin State has problems. The prime minister needs to resolve this matter quickly in order to ensure the integrity of Great Qin's territory. At this time, King Qin said.
Obviously, when King Qin said this, he had clearly agreed with Shang Wen's opinion. Before Shangwen's reforms, Qin only needed to solve the problem of military rations. When it comes to money, they don't think very much. Because, at that time, the commodity economy was not very developed. Most of the problems considered in war are food, because food is the biggest problem in war.
But now, with the rapid rise of the commodity economy and the market economy, the war mode of the Qin State has undergone a lot of changes, and food has dropped from the main material of the war to a secondary position, while money is in the center of market economic activities, so this position is suddenly placed in front of the people of the Qin State.
It can be said that in the current war, the Qin State is fighting for money, not like traditional wars. Therefore, the economic problem is closely related to the war problem of the Qin state. Now if the Qin State wants to fight, it has to consider its own economic costs. The state of Qin had to calculate the cost to conduct the war.
The emergency meeting of the Qin State on how to solve the Qiang problem, on the final issue, reached a unanimous consensus, that is, to solve the internal economic problems of the Qin State, especially the financial problems, in the bank, the Qin State should speed up the pace of financial reform, in order to make the Qin State revitalize.
Just when the Qin State was focusing mainly on financial reform. Qin's banking sector is undergoing a massive reshuffle. The main victims of this reshuffle are those small and medium-sized banks that have lost their main competitiveness, as well as investment and trust companies. These became the object of contention for the large banks of the Qin State. At the same time, these financial institutions are looking to help themselves.
"We are now a common alliance." One banker reached a cooperation agreement with another bank with a letter of agreement that had just been signed, and they relied on this agreement to form an offensive and defensive alliance.
"A common alliance." Another young banker shook hands with the banker and said.
"We'll have a good time working together." Bankers said in unison. Then they shook hands and exchanged agreements for their sons. After learning about the establishment of the banking alliance, the small and medium-sized banks of the Qin State began to actively carry out all diplomatic joint actions, and they formed a new small alliance to squeeze into the UnionPay alliance seat unit.
And on the other side. Some of the big banks in the Qin State are completing their amazing merger activities. Their business expanded far faster than the number of previous bank failures that had led to the financial crisis in the Qin state.
"In this half month, more than 1,000 large and small financial institutions have disappeared in the Qin State, and the number of financial institutions registered before the Qin State is more than 5,000, and the more than 1,000 that have disappeared are more than the number of bankruptcies caused by the shortage of funds in the Qin State before."
"But the good news is that these are more than a thousand financial institutions that have disappeared. Most of them have been annexed, that is, the business of these banks will still exist, the wages of the workers of our country will still exist, their deposits will still be there, and our country will not face major upheaval. The newspaper said.
"In addition, more than a thousand financial institutions disappeared, and there were more alliances between banks, and they formed completely new institutions. Business will be much more than before, and at the same time, they will be much more stable. Qin's financial system was being re-established. ”
"And some of the large banks in the Qin State, the No. 1 Royal Bank, have merged the business of more than 500 financial institutions in this half month, but most of them are domestic. Another large bank in Qin, Wenyang Bank, which had previously ranked first, had only more than 20 merged banks, and its banking business had shrunk a lot. Especially foreign business. Qin Guo's "Express" financial section said.
At a time when large banks in the Qin State were merging the business of the Qin State Bank and small and medium-sized banks were reorganized into alliances. Qin's banking alliance was finally formed.
"Our banking alliance has finally been formed after a long period of negotiations." Shang Wen reluctantly stood on the temporary conference stage of the banking alliance at this time and said.
"The banking alliance was established to prevent large-scale chaos in the financial system of the Qin State for a certain period of time. Everyone has also clearly experienced this financial chaos in the Qin State. This kind of chaos is a very bad thing for us. Shang Wen said.
"Therefore, we need to establish a global financial institution that can control the overall situation." Shang Wen said at this time.
"Originally, this institution was controlled by the government. But our market is free, and only a free and competitive market can maintain our vitality and make our financial market prosperous. Shang Wen waved his arm and said.
"Qin's financial system, in the whole market environment. occupies a considerable important role. Therefore, we need them to provide continuous financial support for the Qin State in a stable manner. Shang Wen said.
"Stability is so important to us. For the freedom of the market, and the Qin State has a steady stream of financial support. The Banking Union was established here. Shang Wen said with a smile.
"Bang bang." Shang Wen said this, and the bankers of the Qin State applauded, for them, it was nothing to participate in such a meeting. They know what's next is all that matters.
"When we're going to get the money injected is the most important thing." The bankers in the audience were not concerned about Shang Wen's concerns. What they care about is that they're going to get an unprecedented injection of money and then get back up and running, such a huge banking system. They are a part of the banking system. What they need now is to re-inject a considerable amount of money to complete their business.
In the afternoon of the formation of the banking union. The banknote printing house of the Qin State began to transfer frantically, and the banknote printing machine of the Qin State had never printed so many banknotes on such a large scale.
And these printed banknotes were delivered to the major banks of Qin in the afternoon of the same day. At the same time, the Qin government withdrew a staggering number of bonds it had previously issued. This means that the number of bonds in Qin is rapidly decreasing. And that's not all.
By joining the banking alliance, the government acquired some shares in the banking enterprises of the important banking alliance of the Qin state, as well as some bonds. Although the number is only a small number, it means that the Qin government is participating in the operation of enterprises through this means. This shows that the functions of government are entering the market field.
Although the amount of corporate shares and bonds that day is very limited, it is really beneficial for banks that are desperately short of funds and need to expand their funds quickly, and they will expand their business in this way, because they know very well that with the funds they can expand their business, and at the same time, their business will be infinitely larger. After collecting a large amount of money, they can sell their stocks and bonds back.
And the government won't hold these things for long. Because there are many places where the government needs to spend. Moreover, they all heard. The current situation in the Qin State is not very good. In particular, the Qiang people in the southwest were working against the Qin border, which usually meant that the Qin state would take military action against them. Taking military action means that the government has to spend money to fight the war.
Spending money to fight a war requires funds, the government lacks effective financial support, what they need is, funds, more money, the government can remain rational and will not issue more paper money, they will only continue to fight by issuing bonds, if too much paper money is issued, everyone knows what will happen. Moreover, the government is printing more paper money to grab the extra wealth, which has become a tacit thing for bankers.
On the day that Qin's banknotes were injected into the market, Qin's stock market burst into new vitality again on the same day, and Qin's stock market rose by more than 100 points on the same day. A lot of stocks have gone up like crazy. The stock market of Qin State had already begun to rise before, but the magnitude was far from so large.
Qin's stock market once again burst into the vigor she deserves.
"Shorting the kid Li Wen will lose at least one million gold in assets. He had made tens of millions of dollars by shorting the market before. This short boldness will throw the money he earns into the entire stock market. The financial section of the Express wrote.
"Hey, look at these stupid journalists, I'm going long, in fact, I've been long the market a few days earlier. I've stopped buying stocks. I bought the lowest priced stock. These stupid journalists. Li Wen looked at the newspaper and said with a smile.
He bought a variety of high-quality stocks. Prices have never been cheaper.