At the beginning of '92, the Diet will not only discuss relief measures for the financial industry, but also announce the economic situation of the previous year.

Other data aside, the GDP of '91 alone has made many officials shudder.

In '89, Neon's GDP was still around 5%, and in '90 it became 2.2%.

However, in the most recent year, last year, this figure has become -0.34%!

If you look at the numbers alone, Neon's economy is going backwards.

Since it began to take off in the 60s, Neon has maintained high economic growth most of the time.

GDP even exceeded 12% at the fastest growth rate, but after a round of bubble blows, the economy has completed negative growth?!

From heaven to hell, such a rapid reversal, many government officials can't even react.

But that's not all, the bubble has just burst, and many of the negative effects haven't yet appeared.

The current situation in the financial sector is also extremely worrying, and many officials in Congress have been extremely solemn under various blows.

After several days of discussions, the Ministry of Finance took the lead in preparing a thorough inventory of Neon's financial industry.

If we want to save the banks and maintain the myth that the "banks don't fail", then we must understand the real situation that the financial industry is facing at the moment.

As a result, all banks that have reported huge losses, and those that have appealed to the Ministry of Finance for help, must accept a team appointed by the Ministry of Finance.

These working groups do nothing but find out the assets of the banks.

In the face of the sudden toughness of the Ministry of Finance, the major banks can only accept it silently.

Because the financial industry of Neon in the past two years has indeed been eventful, and various blows have been carried out one after another.

If you don't do something about it, maybe something unexpected will happen.

So from the beginning of '92, the civil servants of the Ministry of Finance began to go out in whole and flew to neon cities large and small.

Changyin, who originally resisted, had no choice but to accept the investigation honestly.

After nearly three months of investigation, the data brought back by the civil servants made the Ministry of Finance almost jump in shock.

At that time last year, 21 banks reported bad debts of about 110 billion US dollars, which was converted into about 15 trillion yen.

However, this year, this number has tripled or quadrupled, reaching a terrifying 50 trillion.

Coincidentally, this figure coincides with the estimated figure that Kiichi Miyazawa distributed to many banks in his villa more than a year ago.

However, Miyazawa was conservative at the time, and the expert group he convened estimated the figure to be the end of the 90s.

But now it's just now, '92 is just the early '90s.

The reason for such a large discrepancy is that land prices continue to fall rapidly.

Over time, banks' non-performing assets have expanded rapidly.

Another reason is that the major banks are covering up their bad debts.

Fake accounts, that's the traditional art of the banking industry.

In particular, Changyin, after a thorough inventory by the Ministry of Finance.

In the face of that sum of accounts, the civil servants who came directly fell silent.

Prime Minister Haneda also fell silent after reading the assets of Changyin.

What 4 trillion bad debts, that's a liar.

Previously, the total loan amount announced by Changyin was about 12 trillion yuan, of which the bad debt was about 4 trillion yuan.

It's because it was picked up by the media that I had to honestly release the data.

However, whether it is the media or Bai Chuanfeng, who has been staring at Changyin for two years, they all underestimate Changyin.

According to this survey, the overall loan assets of Changyin were 26.6 trillion yen.

Under normal circumstances, banks should be happy to have such a loan business.

After all, bank lending is one of its main means of making money, whether you are a special type of bank or an ordinary bank.

But what is difficult is that 55% of Changyin's 26.6 trillion loans are related to the real estate industry.

What is the current situation in the real estate industry?

Optimistically, nearly 40% of the 26.6 trillion yen loans will become bad debts.

With more than 10 trillion yuan of non-performing assets, it is no wonder that the 2.8 trillion yuan of relief funds allocated by the Ministry of Finance to Changyin seem to have been lost.

This amount of money is a drop in the bucket for Changyin.

Changyin is a big pit, a bottomless pit, and the moment he saw the report, Prime Minister Haneda sentenced Changyin to death.

Ten trillion yen, the Ministry of Finance gritted its teeth and was able to take it out.

But what about other banks? More than 50 trillion in debt is enough to bury the entire neon financial industry.

At this time, even if he didn't deal with the Miyazawa cabinet, Haneda had to pick up the phone and start asking for help.

Hearing the figures reported by Haneda, Miyazawa was also numb.

How can this be saved? The economy is down, and the country has no surplus food.

Besides, the annual state budget is limited, and education, medical care, agriculture, industry and commerce, transportation, and scientific research do not require money.

You can't give up other industries in order to save finance, don't say whether Miyazawa dares to make this decision.

Congress will definitely not agree to this, financial its own scandals and bad debts, why should other departments share the blame.

Faced with this headache number, Miyazawa decided to let the Ministry of Finance save itself first.

In any case, the situation will be stabilized first, and there will be no further signs of collapse.

The advantage of the Ministry of Finance's self-help is that the money does not need to be discussed by the Diet, and it can quickly intervene in the market.

So Haneda, who knew that the matter could not be delayed, immediately allocated 2 trillion yen in relief funds to help the major banks renew their lives first.

Miyazawa took the lead in discussing with the Diet the issue of restructuring the banking industry, and the facts were in front of him, and it would be too late to change them.

However, since ancient times, there has been collusion between officials and businessmen, especially neon, which is known for its nepotism.

The data that Haneda had seen on the front foot was placed on Shirakawa Kaede's desk the next day.

In fact, not only him, but also several other chaebol leaders also have corresponding information.

After seeing how big the mine in the banking industry was, Shirakawa Kaede also gasped.

I was still conservative in my calculations with Arai Yu before, and Changyin had deceived too many people.

Among the top 10 borrowers of Changyin, there are five real estate companies, three financial companies, and two industrial companies.

In other words, finance and real estate account for eight of the 10 places, and the only two industrial companies are TEPCO and Kawasaki Heavy Industries.

And their ranking is still relatively low, and financial real estate is the sweetheart of Changyin.

Looking at this list, Shirakawa Kaede and Arai Yuto smiled bitterly.

"I didn't expect Changyin, which started with heavy assets, to end up with a basic market that was almost gone."

"In the face of the lucrative stock market and real estate in the golden age, few banks could remain calm and unimpressed."

Hiroshi Arai is not surprised by the situation of Changyin, and the financial industry is inherently fond of chasing high-risk, high-profit financial products.

It's just that I didn't expect that the scale of Changyin's loan far exceeded the original expectation.

"Arai Sang, with the current scale of Changyin's bad debts, can Beidu Bank digest it?"

Faced with more than ten trillion bad debts, Shirakawa Kaede also became unconfident.

This was a far cry from what he had expected, he wanted long silver, but not at his own expense.

"If all the 10 trillion yuan are bad debts and non-performing assets, Beidu Bank will not be able to bear it.

Chairman Shirakawa should not forget where Changyin's financing comes from, and it is still somewhat different in nature from Beidu Bank. ”

Hearing Arai Yu's reminder, Shirakawa Kaede smiled bitterly again, he almost forgot that Changyin was formerly a special bank.

Unlike commercial banks such as Beidu Bank, 80% of Changyin's financing is financed by issuing bonds.

Among them, the ratio of interest-bearing bonds to discount bonds is about 3:1, and the difference between the two is that one has a five-year repayment period and the other has a one-year cashback period.

The former is mostly held by institutions, while the latter is mostly purchased by individuals.

To put it simply, the money lent by Changyin to major enterprises is through crowdfunding.

Changyin earns profits through the interest rate difference between the interest rate on loans and the interest on the bonds on the offering.

Originally, if it was an industrial group, it would have been a very stable loan income.

But the difficulty is that Changyin has gradually transformed, and it has invested all this money in financial real estate.

Now these bad debts and non-performing assets are all money in exchange for issuing bonds.

In other words, the money needs to be returned to institutions and individuals with interest.

In essence, Changyin itself is a debtor, and it owes money to those who buy Changyin bonds.

Now that there is such a big shortfall, after one or five years expire, what money will Changyin use to pay its creditors?

If you can't get the money, then what awaits it is bankruptcy is a journey.

To tell the truth, with such a big deficit of ten trillion, Beidu Bank can't hold it.

The cold wave of the bubble has not yet shown its power, and who knows if Changyin's bad debts will increase.

Just when Shirakawa Kaede was in a dilemma, suddenly the phone on the desk rang.

"Moximoxi? It turned out to be Miyazawa-san, and the contemptible person must be there. ”

Smack, hung up the phone, Shirakawa Kaede looked complicated.

"The Miyazawa Cabinet would like to invite Hokuto Bank to discuss the neon banking industry improvement plan.

Changyin was one of the key targets of discussion, and it seems that the Ministry of Finance is ready to abandon it. ”

"Huh?" Hiroshi Arai was caught off guard by such news.

He didn't expect the Ministry of Finance to move so quickly, and hasn't the "myth of the bank not falling" always been the creed it has strived to maintain?

In fact, the Ministry of Finance has no other way, because some media have poked out the bad debts of the banking industry as high as more than 50 trillion yuan.

Now the stocks of major banks in the market are plummeting.

Changyin's stock price, which was originally struggling at 200 yen, has reached around 120 yen.

If it falls below 100 yen and breaks, then the long silver is really finished.

According to the process of the Tokyo Stock Exchange, the broken stock will be delisted after a certain period of time.

A super-first-class bank that has been delisted is a joke, and neither the Ministry of Finance nor the Cabinet can afford to lose that person.

"President Shirakawa, what do we do now?"

Ten trillion yen, long silver., these made Arai Yuki unable to make up his mind for a while.

The more unexpected the situation, the calmer Shirakawa Kaede became.

He paced back and forth in front of the window for a moment, then turned back to cut the railway.

"Find foreign aid and make a detailed plan for the acquisition of Changyin!"

(End of chapter)