With a sentence of "avoiding suspicion", Hudson changed himself from the protagonist to a melon-eating crowd. The princes and ministers who were ready to bargain were directly dumbfounded.

The parties don't care anymore, how can they still bargain?

Not everyone, like Count Rinares, is a financial novice. Prime Minister Delgado, who was the Chancellor of the Exchequer, was keenly aware of something was wrong.

Although he has never run a bank, he is aware of the operating costs of doing business.

If the bank's operating costs remain unchanged and the interest rate on loans does not increase, the tax withdrawn will be dug out of the net profit.

Even if the net profit can reach 50 percent, this knife will also gouge 60% of the bank's profit.

The nobles who draw blood so ruthlessly and touch their own interests are no wonder if they don't go crazy.

Originally, I wanted to bargain with Hudson, explore the bottom of the bank's operation, and then determine the specific tax rate, but the parties did not cooperate.

Even though Count Rinares proposed an ultra-high interest rate of three points, Hudson remained indifferent.

There was no way, the Marquis of Delgado could only turn his attention to Caesar IV for help.

Many of the people present invested in the bank, but only the Coslow family and the royal family had the right to bank experience.

"Ahem......"

After pretending to cough twice, Caesar IV slowly spoke: "The profits of the bank are not as high as you expected.

After amortizing operating costs, capital costs, and risk gains and losses, the loan interest should be at least seven or eight points before it can break even.

At present, the Near East Development Bank is the only one that can reduce costs.

If the tax rate of three points is directly extracted, it will inevitably lead to an increase in loan interest rates and seriously affect the domestic economic recovery. ”

It's all the truth, the operating costs of the royal bank are so high.

The operating costs of most banks in the market are about the same as this figure, or even higher.

On the one hand, the scale is too small to amortize the cost of operation. On the other hand, the cost of cash transportation is too high, and the transfer of funds between outlets is frequent.

The Near East Development Bank has the advantage of scale, as well as the auxiliary trading of golden bills, and the withdrawal rate of everyone is much lower than that of other banks.

The same cash flow, in the hands of the Development Bank of the Near East, is more than three times more efficient than theirs.

In addition to the interest rate difference of funds, the exchange fee is also a large amount of income, and small banks only have a share of it.

Even Hudson's own prostitution of large sums of money and inflated operating costs only pulled the loan breakeven to more than two points.

If it weren't for the good enough book data, shareholders wouldn't have injected capital again and again.

Of course, you can't blame your peers for not doing their best. Everyone is in the groping stage, still stuck in how much deposit and how much to lend, and they don't know how to recycle leverage.

To be exact, the deposit is not much. A large part of the money that was taken out for lending was raised by the shareholders themselves.

If it weren't for the successful case of the Development Bank of the Near East, everyone would not be willing to invest in the water, and it is estimated that they would have closed down their doors long ago, and they would not have been too lazy to earn this hard-earned money.

Knowing the truth, everyone's first reaction was impossible!

It's really too exaggerated, the operating costs of banks are so high, where are the huge profits?

However, considering that this was said by the king himself, unless he was deceived by his subordinates, there could be no problem with the authenticity of the data.

There are a bunch of large and small banks in China, and it is very simple to verify, even if someone deceives them, they dare not do it so obviously.

If the data is true, things suddenly become awkward.

There are 180 large and small financial institutions in China, and the one that really makes money is the nearby East Development Bank, as well as usury that cannot be put on the table.

It is impossible to discriminate, and it is okay to strike hard at loan sharks. Specifically for the development of the Near East Bank to implement a high tax rate, it is estimated that they will be beaten up when they leave the palace gate.

Even if it were enacted, such a bill that violated the principle of fairness would not have been passed by the noble council.

Realizing this, a cold sweat broke out on Count Rinares' forehead.

It's really terrifying, his proposal is actually cutting off everyone's financial route.

Fortunately, he didn't pass directly, otherwise it is unknown whether he will be able to see the sun tomorrow.

"Your Majesty is right, the Royal Government has always cracked down on usury, and it must not raise the interest rate on loans.

I think the tax rate is set at 0.5 percent!

Now that there is a new lending platform, it is time for those unscrupulous usury to be outlawed for the healthy development of the kingdom's economy.

I propose to formulate a law that clearly stipulates the maximum interest rate for private lending, and once the excess loan is directly judged to be invalid! ”

Prime Minister Delgado said righteously.

There is no doubt that this is a remedy for the mistake just made.

Although the proposal was thrown out by Count Rinares, it was also discussed at an internal meeting of the government.

In this year's taxation, it is not enough to rely on the law alone, but also to obtain the cooperation of taxpayers.

After collecting taxes from banks, it is natural to give positive feedback, such as cracking down on the bank's competitors, usury.

Otherwise, the bank is bent on making false accounts, and the laymen in the tax department may not be able to find out if they find out that they are in the wilderness.

Unable to take the opportunity to press the competitor to death, Hudson secretly said that he was sorry, and then returned to normal.

Fools, after all, are only a minority.

The introduction of brainless policies is either due to ignorance or from interests.

The king himself was a banker, and it was obviously impossible to formulate policies to kill his own industry.

Whether the tax rate is high or low, the Development Bank of the Near East is the beneficiary anyway. What's more, it also comes with a bill to combat usury.

"The Prime Minister is right when he says that usury really shouldn't exist.

Aristocrats must have the responsibility of aristocrats, not mercenary!

I propose to cap all borrowing rates in the country to 12 per cent, and to ensure that loans are disbursed in full, and that no additional fees should be added in any name.

Those who are found to have violated the law will not only have their illegal gains returned, but will also be fined and confiscated the principal of the loan, and banned from engaging in financial business for life.

In order to ensure the implementation of the law, the Royal Government should also encourage everyone to report usury.

Once verified, the whistleblower can get half of the lender's property! ”

As soon as Hudson's words landed, everyone immediately became staring at each other.

I've seen it ruthless, but I've never seen it so ruthless. Where is the crackdown on usury, it is clearly asking for the life of usurers.

Once the law is enacted, the powerful nobles all over the kingdom will strike hard at the usurers.

can legally annex half of the other party's family business, and can also gain a good reputation, who can refuse!

The crowd did not react, but Caesar IV was secretly complaining.

The mainstream interest rate of banks is 10 percent, but there are all kinds of surcharges, and there are many real interest rates of more than 20 percent.

There is no way, small banks also have to make money!

The cost of oneself is high, and if you want to maintain high profits, you can only find a way to raise the loan interest rate.

In addition to the first-mover scale advantage, the unattached loan interest rate is also an important competitiveness for the development bank of the Near East Development Bank to grow.

In fact, this is also the reason why small banks have a high rate of bad debts.

Who wants to pay a higher interest rate if they can get a lower interest?

Only customers who fail to approve loans, or have relationships within small banks, will choose them.

Hudson's proposal is clearly that he will not play, and no one else will be allowed to play.

It's just that the reason is too legitimate, and I can't find any fault on the surface.

For the sake of the kingdom, Hudson, as the greatest vested interest, was willing to sacrifice his own interests.

Caesar IV, who was the king, could not be opposed.

The princes and ministers did not react, because they had not participated in the management and operation, and they did not know what this meant.

Including Caesar IV, if it weren't for the fact that the Development Bank of the Near East paid dividends and deliberately paid attention to the operation of the royal bank, he would not have known that there were so many holes in it.

Seeing that everyone agreed, Caesar IV also extinguished his mouthful of many words.

Earn less, then earn less, anyway, if the kingdom develops well, he is the biggest beneficiary.

……

"Marshal, take the liberty of asking, what is the total amount of private loans in the kingdom at present?"

Chancellor of the Exchequer, Earl Francis, asked with concern.

When it comes to credit data, no one has a better say than Hudson.

Don't look at the development bank of the Near East, the market share is less than one-third, but it receives large customers, and earns more than ninety percent of the industry's profits.

Based on the data of the Development Bank of the Near East, a relatively accurate figure can be derived from direct extrapolation, and the Ministry of Finance's tax collection expectations are also available.

"From the past data, it is estimated that the total amount of various private lending businesses is about 800 million gold coins.

Compared with half a year ago, it has dropped by nearly 200 million, and it may continue to decline in the future.

It depends on how much you earn in the Papal States.

According to the internal estimates of the Development Bank of the Near East, it may be able to drop to about 600 million, and the business belonging to banks accounts for about 60% of the share.

The aristocracy did not have the habit of owing money for a long time, and if nothing happened, the total amount of loans would continue to fall in the next three years.

Eventually, it will stabilize at around 500 million, and then start a new round of growth. This growth rate is mainly based on the future economic development of the kingdom.

The kingdom's current debt threshold is about a billion gold coins. Exceeding this number, the aristocracy would go bankrupt on a large scale.

At a rate of 0.5 percent, the Ministry of Finance will be able to collect at least 3 million gold coins and a maximum of 4 million gold coins this year. ”

Hudson's answer disappointed everyone.

Three or four million gold coins are a lot of money anywhere, but in the royal government, they are a drop in the bucket.

The most important thing is that this income will continue to decrease in the next three years.

It is also very simple to increase the financial tax, carry out deep-seated social reforms, and make the pie even bigger.

The noble lords all have a stable income, and in times of peace, except for the new nobles who have a need for borrowing, everyone else will only keep repaying the money.

Even these emerging aristocrats, after having money in their hands, their first reaction is to repay their debts first, and then borrow them when they are short of money.

For individuals, it does save money interest. But for banks, this is a big downside.

As for the groups outside the aristocracy, they are not mainstream customers. At present, more than 80 percent of the Bank's credit business comes from the aristocracy.

Compared with the aristocracy's continuous reduction of debts, merchants' loans did continue to grow, but unfortunately the base was too low, and the risk of debt default was higher.

The broader freeman market is not yet a market. The pay is not proportional to the return, and only some loan sharks are staring at this piece.

Of course, it is not completely without new customers, and the Royal Government is the largest customer.

As long as the banks dare to lend at low interest rates, the royal government does not mind handing over all the debts to them so that everyone can earn this interest.

Theoretically, lending directly to the Royal Government can save a lot of money on customer search and follow-up maintenance costs.

Unfortunately, all commercial banks have doubts about the repayment ability of this large customer.

If there is really no risk, the interest rate of six points will be rushed to be released, and four points and five points are not negotiable.

"Don't be too disappointed, something is better than nothing. The kingdom's economy was only just picking up, and it was not possible to generate large tax revenues on its own.

With this additional income, it will not only be able to make up for the shortfall caused by the tax reform, but will also provide an additional amount of debt repayment funds.

If the Papal States had made more profits, perhaps our financial pressure would have been solved! ”

As he spoke, Caesar IV's heart was dripping blood.

Hudson, the founder of the bank, actually predicted a downturn in the industry in the next three years, which is not a good thing for the royal bank with only a small profit.

It's speechless to think about it, the nobles repay the loan in advance, and it is possible to repay the loan to death.

Knowing and knowing, Caesar IV was still powerless.

In order not to lose money, deep down, he has decided to halt the expansion plans of the royal bank.

It's better to be conservative at this time. It would be a tragedy if you set up outlets all over the place and no customers come to your door.

The biggest expense of small banks is not that bad debts are endless, but that the cost of capital mobilization is too high.

But this is another vicious circle!

Without enough customers to dilute costs, we have to shrink our business outlets to reduce operating costs.

However, the fewer outlets, the less attractive they are to customers.

Especially for businessmen and mercenary groups running around, in order to facilitate withdrawals, people can only choose banks with many outlets to cooperate.

……

When the dust settled, Hudson knew that the kingdom's financial world was about to change.

Now there are more than 100 financial institutions, and there is a high probability that there will be no more than 30 of them that can survive in the end.

The usurers of the people will only die even worse.

The Royal Government now has no money, and it is difficult to achieve results in the short term by adopting normal means to collect taxes.

The best choice is naturally to pick a fat sheep and kill it for meat.

Obviously, this will not work. Although the development of the Near East is now fat, it is still a tiger.

All the Royal Government can do is to catch a few rabbits and slaughter them to satisfy their hunger.

The loan shark gang that can't get on the table is the best target for hunting.

Even the legal issues were resolved at this meeting.

……

When the dust settled, Hudson heard a familiar voice in his ears as soon as he left the main hall.

"Marshal ......"

Without the slightest hesitation, Hudson immediately summoned Maxim and left directly.

As a result, because he was in a hurry, he hit the roof of the palace directly, and the falling rubble also injured two guards on duty.

Seeing this scene, Hudson threw down two bottles of magic potions and hurriedly flashed. If it weren't for the magic shield, he would have been injured too.

The unfortunate thing had just begun, and after two hours of traveling through the clouds, he collided with a group of "Sound Splitters".

Naturally, the fight did not start, and Maxim's body lit up, causing a group of Sound Splitting Beasts to scatter and flee.

But the screams made during the panic escape still disgusted Hudson.

It's a real hammer, and the legend of the Doom Heavenly Maiden is most likely true.

Otherwise, how could there be so many coincidences!

The dragon will make a mistake and hit the house, which is inconceivable when you think about it; The Split Sound Beast is a rare animal, and it is rare to see one of them in normal times, but this time it actually collided directly with a group.

If it weren't for the two Sacred Domain bodyguards, it would not be strange to encounter so many accidents and kill an ordinary eighth-order powerhouse.

Fortunately, there were no more moths on the next road, otherwise Hudson would have run back to the royal capital to settle accounts with the initiator.

……

In the Emerald Palace, Princess Madeleine stomped her feet angrily. For so many years since she was a child, she has always been the most eye-catching cub, but now they all take a detour when they see her.

"Humph!"

"Coward!"

"If you knew this earlier, then I didn't tell you, and I just killed you and killed you......"

The noise is terrible, but deep down the princess Madeleine is up and down. accidentally took away a few unlucky second generations, the royal family can still hold it, if the marshal of the kingdom has an accident, she can't end it.