I'm in the county town, and you say I'm a big shot?

Chapter 314 Zhao Wenjun Feels Frustrated
"You noticed it too?" Fang Qingye asked with a smile.

"Oh my god, are you testing me?" Xia He rolled her eyes at him in the video: "According to the China Banking Regulatory Commission's requirements for loan concentration, the outstanding credit line of Nanxin Rural Bank to Qinggu Xinhe Group (a single group client) shall not exceed 10% of the bank's net capital."

"Although I don't know the specific net capital figures disclosed by Nanxin Rural Bank, I can make some inferences based on its registered capital."

“Nanxin Rural Bank has a registered capital of 1 million yuan. For rural banks, considering that it is difficult to make a profit, the surplus reserve and undistributed profits will not be too high. Therefore, according to the formula “net capital = core capital + supplementary capital - capital deductions”, its net capital will often not be much higher than the registered capital.

"The bank's total loans to two subsidiaries of Qinggu Xinhe Group amounted to 1838 million yuan, which is very likely to exceed the 10% regulatory limit. Are you satisfied with my answer?"

After Xia He finished speaking eloquently, Fang Qingye clapped her hands and laughed, "As expected of President Xia, you are quite skilled in your work."

"Alright, stop joking around," Xia He said playfully. "Now that you've discovered the problem, don't you want to remind Zhao Wenjun?"

"A reminder? A reminder about what? Zhao Wenjun has been in the industry for over twenty years and has a wealth of experience. Can't he see this problem? I absolutely do not believe it! You're insulting his intelligence by reminding him!" Fang Qingye replied slowly.

"Look at what you're saying. You mean Zhao Wenjun might know, but he's powerless to stop it?" Xia He understood Fang Qingye's meaning.

“I’m guessing. He’s just the bank president, not a member of the board of directors. Baoshang Bank is a major shareholder of Nanxin Rural Bank, and Qinggu Xinhe Group is a well-known enterprise in Inner Mongolia Province. Don’t they have any connection?” Fang Qingye said.

"Oh, according to your logic, Zhao Wenjun must be really frustrated as a bank manager," Xia He said with a smile.

"He'll have enough to suffer with anyway."

Zhao Wenjun did feel aggrieved.

He was sitting quietly in his office, drinking tea.

After returning from Shanghai, I accepted a job offer from Baoshang Bank to establish Nanxin Rural Bank, with the intention of making a big splash.

Zhang Xiaojun, the assistant president of Baoshang Bank and the current chairman of Nanxin Rural Bank, once promised him that he would not interfere with the day-to-day operations and would let him do his job well!

He also believed that with his abilities and connections in Nanxin, he would definitely make a name for himself.

It started off well; from employee recruitment to the appointment of middle-level leaders, he made all the decisions himself, and Zhang Xiaojun didn't interfere at all.

The bank's internal rules and regulations, various reward and punishment measures, and internal control mechanisms are all decided by the bank owner alone.

This power was something I never possessed, whether I was the deputy branch manager of the Nanxin branch of Dongfangxing or the branch manager of the Agricultural Development Bank of China in Shanghai.

A former U.S. Secretary of State once said, "Power is the best aphrodisiac for men." He now deeply understands this wonderful feeling.

However, several recent events have made him very unhappy.

When he was approving two large loans for companies some time ago, he discovered that both companies were in poor business condition. More importantly, the background information they provided showed that the parent company was the same company in Inner Mongolia!
How does this work?
The two companies' loan amounted to 1838 million yuan, while the bank's net capital was only 1.05 million yuan, accounting for 17.5%, far exceeding the 10% limit stipulated by the China Banking Regulatory Commission for loans to a single enterprise (group).

This is a red line!
He rejected the loan application without hesitation and asked the loan officer to explain the reason for the rejection.

The proposal states that "either only one company can receive a loan, or the total loan amount for both companies cannot exceed 1050 million yuan."

Neither company made any new demands.

He thought the matter was over, but a few days later Zhang Xiaojun came to his door and directly asked him to lend money to the two companies.

"President Zhao, of course I know the regulations you mentioned, but rules are rules, but people are flexible. These two companies were brought here by Nanxin Investment Promotion. Aren't you afraid of alienating them by doing this?"

“Qinggu Xinhe Group is a well-known enterprise in Inner Mongolia Province and a major client of our Baoshang Bank. What you’ve done makes it difficult for me to explain to the bank leadership.” “How about I have our President Lu call you personally?” Zhang Xiaojun finally said.

Grass!
Threaten me!
Zhao Wenjun knew that the "President Lu" Zhang Xiaojun mentioned was the head of Baoshang Bank. What did he mean by having him call her?
If I get this phone call today, I might be dismissed tomorrow!

"Alright then," Zhao Wenjun gave in.

"President Zhao, don't worry. Although these two companies have a lot of loans, they will definitely be able to repay them on time." Before leaving, Zhang Xiaojun patted Zhao Wenjun on the shoulder and reassured him.

I hope so
Zhao Wenjun had no choice but to approve the two loans, but she still felt uneasy about it.

So who will ultimately have the final say from now on?

Am I the bank manager, or are you the chairman of the board?

Or is it that Bank Manager Lu from Baoshang Bank?!

Just then, the office door was knocked open and a middle-aged man walked in. He was Qian Weimin, the chairman of Tenglong Group.

"Old Qian, you're here? Have a seat, have a seat," Zhao Wenjun said, composing herself as she poured him a cup of tea.

"Old Qian, I heard you've been very busy lately. How come you have time to come over?" Zhao Wenjun asked with a smile.

The two have been friends for many years, so they spoke quite casually.

"Hey, I don't come here unless I need something," Qian Weimin said bluntly. "Could you lend me 200 million yuan from the bank for an emergency?"

"What emergency?"

“It’s almost the end of the year, isn’t it? The county is cracking down on the problem of unpaid wages for migrant workers. I need to spend about 400 million yuan. At the end of the year, the group is short of funds and all the suppliers are coming to ask for money. We can’t keep up with the cash flow, so I wanted to borrow some money from you for an emergency,” Qian Weimin said.

Zhao Wenjun hesitated.

It's important to understand that Qian Weimin proposed a loan, not a borrowing!
The biggest difference between the two is that a loan contract requires the borrower to prove their repayment ability and social credit record to the banking institution, and the procedures are formal but cumbersome.

Loan agreements are much simpler. They only require both parties to negotiate and agree on the loan amount, interest rate, and repayment period, making the process much simpler.

But that doesn't comply with bank regulations.

He thought for a moment and then asked, "Old Qian, didn't you withdraw from Huacheng Company and transfer your shares to Fang Qingye? Didn't he give you the share capital?"

“No, he said his company is also facing a cash crunch recently, and the earliest he can get things running again is after the Spring Festival,” Qian Weimin sighed.

Is Fang Qingye's company facing a cash shortage?

impossible?

This guy donated 3000 million yuan in western Sichuan a while ago! The TV station even reported it. Why is he short of funds now?

Zhao Wenjun had some doubts, but seeing Qian Weimin's calm expression, she didn't dare to question him.

Seeing Zhao Wenjun hesitate, Qian Weimin's expression immediately turned displeased: "Old Zhao, I went to great lengths for you back then, risking potentially going to jail! Although it didn't work out, you can't blame me, can you? In the end, I even lost a financial director! I don't think you've forgotten that so quickly, have you?"

(End of this chapter)